By : JHARNA MAZUMDAR
NEW DELHI :
With the festive season starting there is reason for customers to rejoice as both, car companies and banks, are ready with goody bags, to lure customers to loosen their purse strings. The sector which already saw signs of revival in the month of August may see some more traction during this festive season with discounts and offers pouring in.
In September, Maruti Suzuki reported a 33.9% sales growth as compared to September 2019. This buoyancy coincides with the benign interest rate scenario in the country after the Reserve Bank of India’s cumulative 115 basis points (one basis point is equal to 0.01 percentage point) rate cuts. The interest rates for the car loans in India start at as low as 7.10% per annum based on your credit rating and you can avail a car loan which finances up to 100% of the on-road price of the car.
According to BankBazaar, a neutral marketplace for financial products with multiple offer comparison from different banks and insurance companies), if you are planning to join the bandwagon, several banks are willing to offer rates between 7.10-7.7% for an INR 10-lakh loan with a seven-year tenure. Like most retail loan categories currently, it is the Public Sector Banks (PSBs) that have taken the lead in offering the lowest rates. All ten banks on the list of lenders charging lowest interest rates on car loans happen to be PSBs. Punjab and Sind Bank tops this list with an interest rate of 7.1% . Bank of Maharashtra and UCO Bank are offering the highest rates in this top ten list with an interest rate of 7.7%.
For an INR 10 Lakh loan with a tenure of seven years banks are offering –
Punjab & Sind Bank – 7.10%, EMI INR 15,142,
Central Bank – 7.25%, EMI INR 15,215
Canara Bank – 7.3%, EMI INR 15,240
Bank of India – 7.35%, EMI INR 15,264
Union Bank – 7.40%, EMI INR 15,289
PNB – 7.40%, EMI INR 15,289
Bank of Baroda – 7.50%, EMI INR 15,338
Indian Overseas Bank – 7.55%, EMI INR 15,363
Bank of Maharashtra – 7.70%, EMI INR 15,437
UCO Bank -7.70%, EMI INR 15,437
Not ones to lag behind, car dealers and manufacturers too have come up with lucrative offers to boost sales. Automakers in the Indian automotive industry are now offering increasingly lucrative benefits and discounts on their vehicles in order to leverage the joie de vivre and the festive spirit.
Maruti Suzuki India, the country’s largest car manufacturer, is having offers between INR 5,000 cash discount to INR 30,000 cash discounts on their various models, says a dealer from Rana Motors Pvt. Ltd. Their hugely popular model, Swift, has a cash discount of INR 15,000, the Celerio has a cash discount of INR 25,000 and their Vitara Brezza has a cash discount of around INR 20,000 among others. Besides, there is even an exchange bonus of INR 20,000 said a dealer from TR Swahney Motors Pvt. Ltd.
At Hyundai, the company is offering discounts between INR 20,000 to INR 60,000. On Aura there is discount of INR 20,000, on the Santro, the company is offering a discount of around INR 45,000, on the Grand i10 NIOS there is discount upto INR 25,000 whereas the Elantra and Elite i20 benefit upto INR 60,000.
Tata Motors, the home-grown carmaker was offering benefits of up to INR 65,000 on four models in its portfolio until September. The company is yet to announce new offers for the month. The offers until last month were applicable on models such as Tata Tiago BS6, Tata Harrier BS6, Tata Nexon BS6 and Tata Tigor BS6.
According to dealers from Aditi Automobile and Kay Dee Bajaj from Noida respectively, they said that there are discounts even on two-wheelers like TVS, Bajaj Auto and Hero thanks to offers by individual dealers ranging from INR 1,000 to INR 7,000. Banks too have come up with special offers to entice two wheeler customers. Private sector lender, ICICI Bank, announced its festive offers for customers. As part of its festive offer, ICICI Bank is offering its two-wheeler loans at an equated monthly instalment (EMI) of INR 36 per INR 1,000 for a tenure of 36 months, with a processing fee of INR 999.