New Delhi: Auto makers in India are getting into tie-ups with public sectors banks in order to provide retail finance facilities to its passenger vehicle customers.
Tata Motors and Hyundai Motor India Ltd. are the two major auto manufacturers in India to take the initiative.
Retail Financing will help both Banking and Automobile sector to improve upon their businesses which in recent times have slowed down.
Hyundai and Canara Bank sign MOU for retail financing.
Hyundai Motor India Ltd, the second largest car manufacturer and the largest passenger car exporter, in a bid to enhance finance option for its customers, signed a memorandum of Understanding (MOU) with Canara Bank, a major public sector bank in Bengaluru. This partnership will prove helpful in augmenting the business at a time when the auto industry is facing a major slowdown.
With more than hundred years of its proud existence Canara Bank has a wide network of over 2700 branches and ATMs across the country. With its widely acclaimed customer centric approach it has built up a strong customer base of over 33 millions. This association with HMIL will help both the partners to reach out to wider market and make auto loans convenient and easy for prospective car owners.
Speaking on the occasion, Arvind Saxena, Sr. Vice President, Marketing & Sales, HMIL, said, “We are glad to partner with Canara Bank as we see it as value addition for our customers. In the current scenario, we consider it as a welcome move as there is a need for increased financing options and rationalized interest rates for the benefit of our customers.
The two partners will utilize and leverage each other’s strengths to cross sell Hyundai vehicles and the bank’s car loans and schemes. The bank will provide competitive interest rate and increased convenience and accessibility to their customers.
Hyundai Motor India Ltd, already enjoys a strong presence in both the metro and the mini-metro markets with a complete stable of products starting with compacts to premium luxury cars and SUV’s. Through this strategic tie-up with Canara Bank, the company seeks to further strengthen its position across all major markets and focus on a major retail expansion drive.
Tata Motors ties up with Indian Bank and Andhra Bank for retail finance.
“In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Indian bank for financing its range of passenger vehicles,” the company said in a statement.
At present Indian Bank offers car loans up to 85 per cent of on-road price for tenure up to seven years at an interest rate of 11.5 per cent per annum.
As per the agreement, financing facilities would be available at 1,575 branches of the Indain Bank and 470 sales touch points of the auto major across the country,
Tata Motors has also singed up the MOU with Andhara Bank for financing their Vehicles.
Andhra Bank offers car loans up to 90 per cent of invoice for tenure ranging up to six years at an interest rate of 11.75 per cent. The bank also provides 0.5 per cent concession in interest rates to women customers.
As per the agreement, finance facilities would be available at the 1,430 branches of the lending bank as well as 470 sales touch points of Tata Moters.
Source: The Financial Express