With the rise in interest rates, the auto loan industry is also in the set back, Feeling the pinch of the credit crunch, most car dealers are beginning to fear that since,80-90% of most cars in the market are being organized through personal loan.
The RBI repo rate cut has already prompted some degree of interest correction, with PSU biggie State Bank of India announcing it will take a 50 bps markdown later this week. Financiers say they expect other PSU banks to follow suit, though private banks are unwilling to jump in till the short-term money supply turns less volatile
With the private banks in the industry already feeling the heat, you might well want to think about borrowing form a PSU bank since, although they have been affected by their slowdown ad risin increase rates, they still have managed to keep the rates under control
Try not to make any hasty decisions when it comes to buying a vehicle as it can cost you quite a huge sum. Get some information regarding the interest rates and loans available, then go ahead and decide when you want your dream car home.