The much debated demonetisation of INR 500 and INR 1,000 notes has affected the automobile market in the recent weeks. Honda Cars India pre-empts that the car sales would be adversely affected and thus has joined hands with some of the leading banks in the country — Axis, ICICI Bank and HDFC — to offer a 100% loan facility to prospective buyers.
The Company’s arrangement with the three leading banks includes ex-showroom and on-road funding for its various models. The collaborations would facilitate both the salaried, and the self-employed individuals and would cover all the models in the HCIL line-up and can be availed at all Honda dealerships across the country.
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Speaking about the initiative, Jnaneswar Sen, Senior Vice President, Sales & Marketing Honda Cars India said that in the wake of demonetisation of INR 500 and INR 1,000 notes, there will be a big effect on the overall car buying process and the cash component buying is expected to go down. To ease deal closure and give comfort to the customers, the company has negotiated 100 per cent on road and ex-showroom funding deals with HDFC, Axis and ICICI Bank, he added.
The special retail finance offers from ICICI Bank include loans upto 100% of ex-showroom prices of the models and 90% of the on road prices, at an interest rate of 9.50% on new cars and 13.75% on used cars (Honda City and Honda CR-V) and at 9.65% for news cars and 14.25% on used cars (Honda Brio, Honda Jazz, Honda Amaze, Honda Mobilio and Honda BR-V).
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The offers from HDFC include loan value equivalent to 100% of on-road prices of all Honda cars (except Honda CR-V) while Axis bank is offering upto 100% on road funding for 96 months at a salary of INR 25,000 for all Central Government employee and beneficiaries of the pensioner scheme (under 7th pay commission).