Car Loans Blessing In Disguise For Car Industry And Prospective Buyers
Some weeks ago, when Navratras started, growth in the demand of cars was noticed. If one follows closely, Maruti car models aren't the only one which are hogging demand, brands like Hyundai, Chevrolet and Honda are also going with the flow, clocking surge of 7-10 percent in the present season.
However, the big question which props up here is what precisely that suddenly saw a surge in auto-wheelers demand levels. But no, the cause for this demand growth is not the economy conditions but the economical auto or car loans.
Capitalizing on the fruitful conditions, every bank be it government-backed or the private banking entity has been extending first-class financial help in terms of loan products and other financing schemes to the prospective aspirants. This attitude has even resulted into the demand for automobiles in rural areas rising.
By the way, ICICI Bank, which is the largest private sector banking player within the Indian banking industry, is hailed for its splendid car loan solutions that can finance deals up to a maximum of 90 percent of the actual worth of the vehicle with a refunding time-period of 5 years.
But loan borrowers are notified to substantiate their loan applications with a outstanding yearly income proof and also should have a past repayment record since they better borrowers' chance of procuring the sought-after product.
HDFC Bank is another name that is becoming popular for its 100 percent car funding deals. Here also, the legal specifications are different for a salaried person and a self employed person. Loans with a repayment tenure of 1-7 years, are being made available by banks.
In case of public-sector bank, State Bank of India, country's largest lender, is offering family-car loans @ 8 percent rate of interest which will be hiked to 10 percent in the next year.
Similarly Canara Bank is rendering the car loan deal at fixed 8% rate for first year, 9% in IInd year and 10.5% from IIIrd to Vth year.
IDBI too has joined the competition, providing deals on alike lines. But truly speaking, the best deals in city are with those banks which have tied up with car dealers.
Not very long ago, Hyundai signed an MoU with Bank of Rajasthan and Central Bank thus, letting client to secure auto loans at relatively lower interest rate and commodious T&C.
The financial institutions are also taking full advantage of recent respite supplied by Reserve Bank of India, by providing their customers with 10.5% rate of car loan products without charging no processing fee and foreclosure prices.
With Reserve Bank of India providing alleviation to the banks and banks shifting benefits to customer base, it looks like India is very well on its way to resurgence.
