India’s largest car maker Maruti Suzuki (MSIL) on Thursday announced its partnership with private lender HDFC Bank to offer a bouquet of flexible finance schemes for vehicle purchase.
In a regulatory filing, Maruti Suzuki said that its customers will have access to a variety of retail finance schemes from HDFC Bank, which are aimed for making car purchases easier for the new customers.
The introduction of the schemes comes at a time when the country’s leading auto companies have reported zero sales for April due to the Covid-19 pandemic-led nationwide lockdown. The auto industry was already suffering from poor demand due to an economic slump.
The auto major said that customers can avail schemes as a part of special tie-up which includes ‘step up equated monthly installment (EMI) plus ballon’ scheme with an initial EMI of Rs. 1,111 per lakh for loan tenures of 84 months and EMI’s starting from Rs. 899 for the first six months for salaried and first three months for self-employed customers.
The scheme also includes a ‘Flexi EMI’ scheme with an option to choose low EMIs for three months every year for the tenor of the loan.
Commenting on the partnership with HDFC Bank, Shashank Srivastava, Executive Director (M&S) of Maruti Suzuki India said, “We are confident that our collaboration with HDFC Bank for providing retail financing solutions will benefit our customers. This is an advantage to buyers who may face resource crunch amidst the COVID-19 lockdown.”
Srivastava added, “New car buyers can select from a host of schemes that will offer low down payment options and low EMIs. This would particularly help customers in the entry level segments. In addition, digital disbursement makes it more convenient for customers in current times.”
The loans will be sanctioned as per applicable policy of HDFC Bank. HDFC Bank would also be offering Maruti Suzuki customers the option of a post approval digital disbursement. This is an industry first solution through its Zip Drive and Digital end-to-end programme for non-HDFC Bank customers as well.
Arvind Kapil, Country Head for Retail Assets of HDFC Bank said, “We are happy to partner with MSIL in the endeavour to provide customized offerings to our customers particularly during the ongoing COVID19 pandemic.”
Nearly 80 per cent of the car sales in India are done through finance, Maruti Suzuki with its vast network of 3,086 showrooms across 1,964 towns and cities will expect to benefit from the new finance schemes.
The company also said that it has put in place a comprehensive standard operating procedure (SoP) to ensure the highest level of hygiene and sanitization across all its showrooms for the safety of its customers and employees.