Car Loan Interest Rates Climbs Higher
With inflation remaining double digits for consecutive six weeks, RBI plans to tighten its monetary policy. The policy has a direct impact on the interest rates. Oops! Another setback for the car manufacturers.
Car manufacturers are now really frightened with the continuous increase in fuel prices as well as the interest rates. Now all the heart goes down.
Are car manufacturers still strong and powerful to face this obstacle and win over the challenge? The Indian car industry is going down with low economic gains.
This is the third time in the calendar year 2008 and the second time in the current month that the interest rates have climbed up. The current repo rate, rate at which Central Government lends money to the banks, has been increased by half a percentage point and the cash reserve ratio, cash that bank puts aside, has been increased by 0.25 percentage point.
A car loan amount of Rs 3 lakh for a period of three years will have a higher EMI of Rs 73. Car loan for a period of five years, will have an EMI of extra Rs 79 and the loan taken for 7 years will have an additional amount of Rs 84 in the EMI.
The things are becoming worse day by day. When will this inflation end? Who will bring an end? What and when is the next hike in interest rates? Who knows?
Car manufacturers are now really frightened with the continuous increase in fuel prices as well as the interest rates. Now all the heart goes down.
Are car manufacturers still strong and powerful to face this obstacle and win over the challenge? The Indian car industry is going down with low economic gains.
This is the third time in the calendar year 2008 and the second time in the current month that the interest rates have climbed up. The current repo rate, rate at which Central Government lends money to the banks, has been increased by half a percentage point and the cash reserve ratio, cash that bank puts aside, has been increased by 0.25 percentage point.
A car loan amount of Rs 3 lakh for a period of three years will have a higher EMI of Rs 73. Car loan for a period of five years, will have an EMI of extra Rs 79 and the loan taken for 7 years will have an additional amount of Rs 84 in the EMI.
The things are becoming worse day by day. When will this inflation end? Who will bring an end? What and when is the next hike in interest rates? Who knows?
Labels: Car-Finance, Car-Loan, Car-Manufacturers
4 Comments:
Please not again. I don’t understand what the government is actually trying to achieve. Now the hike is getting onto my nerves. Every time I make up my mind to buy a new car and a obstacle obstruct my way. I am now very confused as to should I wait for the market to go down or is that just a dream now. I really wonder whether I should go ahead with my car purchase at this stage.
I was planning to buy a new car and thought of financing it. But with so much interest rates i will not be in a position to think also to buy a new car.I dont understand why we are targeted so badly. Even the fuel prices are increasing day by day and with the increase in interest rates. It will be difficult for the car buyers as well as the car manufacturers.
Was planning to buy i10 on finance this is a very bad news for me. I dont understand why so many times the interest rates are increasing. Now i dont know what to do whether to have hopes that may be the rate may decrease or forget about purchasing a new car.
With RBI hiking interest rates for all the loans, it has indirectly hit the belly of car manufacturers. This exercise is aimed at bringing down inflation.
For Car manufacturers it has become a nightmare, the increase in fuel price and the hike in interest rates. Now thats called a stab from both sides with a knife having two sharp edges.
Post a Comment
<< Home