As a strategy to differentiate itself from other non-bank lenders, ELK-Desa's hire purchase business is centered on the small value used car sector, which is generally not an area of focus for the typical financial institution.
In addition, the company conducts its business mainly through dealers and to date, it has successfully cultivated an extensive dealer network that is more than 1,000 strong. ELK-Desa also relies on a broad hirer base as a way to reduce its credit risk.
As a natural extension of its hire purchase financing business, ELK-Desa also offers general insurance products through its wholly-owned subsidiary, ELK-Desa Risk Agency Sdn Bhd.
The current size of Net HP
receivables at
658 million
as at 31 March 2024
Operates its hire purchase financing
business via its wholly-owned subsidiary,
ELK-Desa Capital Sdn Bhd.
The Division employs a total of 204 individuals.
ELK-Desa's hire purchase business is
centred on the small-value used car sector.
Group relies on a
broad hirer base
as a strategy to reduce its credit
risk
As of 31 March 2024, a hirer base of
approximately
39,000 individuals
Average outstanding net hire
purchase receivables per hirer
is approximately RM16,900
Cultivated an extensive dealer
network that is more than
1,000 strong
Built a solid reputation
as a progressive and reliable lender
amongst its stakeholders, from used-car
dealers to borrowers
The collective
know-how and
skills-set
within ELK-Desa will be integral as the
company further expands its presence in
the foreseeable future.
Performance in 2023
Hirer Base
38,900
Outstanding net hire
purchase receivables per
hirer
RM13,300
Annual hire purchase
disbursements
RM110.66
million
Revenue
9%
to RM85.30 million
Services & Products
Hire Purchase
We are a Hire Purchase ("HP") financier in the used car sector, offering HP financing to car buyers seeking small value financing since 2004, a market segment that remains largely underserved by financial institutions. Our HP financing is currently available mainly through our network of over 1,000 panel used car dealers located in the Kuala Lumpur and Selangor area.
General Insurance
Concurrently, we offer motor and other classes of general insurance products to our existing HP customers. Currently, we are the authorised insurance agents for well established insurance brands, namely Tokio Marine Insurans (Malaysia) Berhad and Berjaya Sompo Insurance Berhad.
