The coronavirus outbreak is proving to be a challenging period for all sectors including the automobile industry. While no cars were sold in April, things are slowly returning to normalcy as carmakers have resumed operations and even reopened select dealerships. The country’s largest carmaker Maruti Suzuki India on Thursday said it has partnered with HDFC Bank Ltd to offer flexible finance schemes for new car buyers.
Among various kinds of offers in the scheme, it gives customers an option of an EMI as low as Rs 899/lakh for the first 6 months of the loan tenure. The loans with lower initial payments, which rose later during the tenure, were termed as ‘teaser loans’ by the RBI in 2008.
The loans will be sanctioned as per the applicable policy of HDFC Bank. In addition, in view of the current social distancing norms and the need to reduce physical documentation, 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. Earlier, ICICI Bank had launched a similar scheme on May 26 in partnership with Maruti Suzuki India.
The bank has designed different options for customers to choose for financing. Under the ‘step-up plus balloon’ EMI scheme, the monthly payments will start at Rs 1,111 per lakh and customers will have to pay the remaining amount in the last EMIs. The repayment is structured in a way that the last instalments would work out to be a big chunk of the sanctioned amount.
Speaking about the partnership, Shashank Srivastava, Executive Director, 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. 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.”
Financing has always been a great enabler in automobile sales with about 80% of cars in India coming through financed purchases. As far as business in post-COVID-19 lockdown is concerned, Maruti Suzuki has put in place a comprehensive standard operating procedure (SoP) for its dealerships across the country. The process ensures the highest level of hygiene and sanitization across all its showrooms for the safety of its customers and employees.