A recent press report said that banks are planning to improve their car loan book this festive season. SBI and HDFC have reduced their margin requirements for Tata’s Nano to Rs. 15000. If the borrower opts to take loan from Punjab National Bank then no margin money has to be paid for the Nano.
Reports said that SBI has planned to offer attractive interest rates between 9-10.5 per cent on several Maruti models. Axis bank has tied up with Tata motors and offers 6.99 per cent rate of interest for Indica and Volkswagen.
Mr. Jairam Sridharan, Sr VP, Axis Bank, said that the bank is expecting a little bit increase in auto sales this year. HE said that the bank has decided not to pass on its rates to auto loan to the customers till October 31. He added saying that the banks has planned to introduce schemes where consumers can get instant approval of auto loans in auto loan given the critical time period.