After ICICI Bank, Maruti Suzuki Ties Up With HDFC Bank For ‘Teaser’ Car Loans
The Maruti Suzuki logo is displayed on a vehicle at a dealership in New Delhi, India. (Photographer: Sanjit Das/Bloomberg)

After ICICI Bank, Maruti Suzuki Ties Up With HDFC Bank For ‘Teaser’ Car Loans

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India’s largest carmaker Maruti Suzuki India Ltd. has partnered with HDFC Bank Ltd. to offer flexible finance schemes for new car buyers.

The move comes days after the automaker tied up with ICICI Bank Ltd. for ‘teaser’ car loans—something that the Reserve Bank of India had frowned upon in the past.

The HDFC Bank schemes include flexi equated monthly instalment options, under which a customer can avail low EMI for three months every year, up to 100% on-road funding and instalments starting from Rs 899 per month per lakh for the first six months, Maruti Suzuki said in a statement on Thurday.

"This is an advantage to buyers who may face resource crunch amidst the Covid-19 lockdown,” Shashank Srivastava, executive director-marketing and sales at Maruti Suzuki, said in the statement. "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, Srivastava added.

Arvind Kapil, HDFC Bank's country head for retail assets, said the partnership would provide customized offerings to customers, particularly during Covid-19 pandemic. "These are challenging times for the country, and we believe it's the collective responsibility of all stakeholders to provide flexible offerings to customers.”

Also Read: Zero Sales: Indian Carmakers Have a Month Like Never Before

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, the statement said.

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