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Thursday, 28 January 2010
It seems like all the major car makers in the country are tying up with one or the other banks so that they can sell their wares quite effectively in the country. Bucking this trend is Toyota Kirloskar Motor Pvt. Ltd which has signed a Memorandum of Understanding (MoU) with the State Bank of India to provide auto retail financing to their prospective customers. The State Bank of India will be one of the preferred financiers for the entire range of vehicles marketed by Toyota Kirloskar Motor Private Limited (TKM) in India. The agreement was signed by Mr. Sandeep Singh, DMD of Toyota Kirloskar Motor Private Limited (TKM), and Mr. P. Nanda Kumaran, Chief General Manager, State Bank of India Personal Banking Business Unit in Mumbai in the presence of Mr. Anup Banerji, DMD & Group Executive (NBG) of SBI and Mr. H. Nakagawa, Managing Director of TKM. Among those present on the occasion were the officials of both SBI and Toyota Kirloskar Motor Private Limited (TKM). The MOU aims at targeting high end customers who will be availing car loans from SBI above Rs. 5 lakh onwards. SBI has come out with a special scheme called SBI Advantage Car Loan Scheme for this niche segment. This scheme is applicable to individuals - Salaried, Professionals, Self employed, Businessmen and Proprietary /Partnership firms, who are income tax assesses and whose income/net profit or gross taxable income is Rs.2.50 lakh and above. This scheme will be implemented in all RACPCs, all PBBs, all District Head Quarter Branches, Project area branches and Branches specially authorised by AGM (Region). Maximum loan amount will be 48 times of NMI or 4 times of NAI. Labels: Car-Financing, Car-Loans, Toyota-Kirloskar-Motor
Thursday, 21 January 2010
Your own earnings may not be enough for buying a costly vehicle like a car. Hence, borrowing the money through a loan becomes part of buying the vehicle for most of the people. While any loan can provide you the finance, but take note that personal car loans are specifically carved out for the purpose, meaning that the lenders are already familiar with your needs and availing of the loan is usually convenient. But you must meet certain conditions. Before you apply for these loans, ensure that you have checked your credit report after taking out all the copies from the major credit rating agencies. The report has recorded all the payments that you made in the past towards old loans and the lenders will study it for the risks. Hence, report to the agencies about any inaccuracies in the report. Another aspect of the loan that you should prepare for is the down payment to the lender. The lender will ask you to pay a percentage of the loan in advance in order to sort of secure the loan amount. Hence, start saving money for the down payment. Moreover, the down payment is useful for the borrowers who have a bad or poor credit history, as a sizable payment can extract not only timely but its approval of the loan interest rate may therefore be lowered. If you want to borrow greater amount for buying a new car, then personal car loans require you to pledge a property like home or even the very car you are going to buy. Its deal papers will be with the lender until you repay the loan completely and you can drive the car. But the loan amount will not exceed the value of the car. Low loan rate of interest is the chief benefit of the secured. If you are a tenant or non-homeowner, the loan can be availed in the unsecured option, without collateral. But only a smaller amount of up to  £ 25000 is usually approved and interest rate goes little higher. Repayment of both the secured and unsecured personal car loans ranges up to 5-7 years. Compare different offer of the loan on internet for finding out the loan at competitive rates and at fewer additional charges. Labels: Car-Loans, Personal-Car-Loans, Vehicle-Loans
Monday, 21 September 2009
It seems like nothing in the world is capable of stopping the Tata Motors from its objectives and ambitions and if you have such an opinion this piece of information that you will be reading on, will give you a reason to rejoice thinking you are in the right lane of thoughts. Tata Motors, one among the major automakers of India has been successful in attaining a loan of amount £10-million from the British Government.And the most amusing part is that it is the first time the British government is lending a loan under the British government's £2.3-billion automotive assistance programme. Now, the loan is for the company’s new electric car project in UK. Thinking about all possible reasons, which would have made the British government feel comfortable, and secured too, to lend Tata Motors a loan, the first few things came into mind is its plans to launch Nano in the European and American car market and its buy out of Land Rover and Jaguar.These initiatives have surely called for global attention and now have helped the company to create such an achievement. The company will manufacture electric cars in the UK and apart from the £10-million loan from the UK government, the company is also investing an amount of £25 million. It is said that the company is thinking about setting up a factory in the UK. It seems Tata has foreseen this helping hand and it has developed a four-seater electric car in partnership with Norwegian group 20Miljo Grenland/Innovation and with is huge financial from the British government, the company will start the production of this car later this year in Norway. This will surely be a give and take process as both the parties, Tata and the British car industry, will gain from it. With the help of the British government itself, Tata will soon fully overpower the fast growing green car industry. Labels: Car-Loans, Electric-Car, Fiat and Tata, Jaguar, Land-Rover, Nano, Tata-Motors-Cars
Friday, 11 September 2009
The festival season is at the doorstep and the banks and financial institutions are competing against each other to offer a better car loan. The Government banks are offering loans at lower rates while the private lenders are dangling higher loan-to-value proposition. To illustrate, we have the Canara Bank, IDBI Bank and ICICI Bank which had revised their car loan interest rates in August. Canara Bank is offering a new scheme similar to State Bank of India’s (SBI) fixed-cum-floating offer in the home and auto segments. The SBI is offering 8 per cent for the first year, 10 per cent for the next two years, while Canara Bank is charging 8.5 per cent in the first year, 9 per cent in second year and 10 per cent between third and fifth year. Seeing this, both the ICICI Bank and IDBI Bank have cut their rates. While the rate of interest is the most attractive feature of a loan, other issues such as structure (hybrid or fixed-cum-floating), loan-to-value on offer, tenure or time period and dealers’ partners need to be considered as well. These are some of things to consider for a consumer before opting for a loan. A car loan seeker should approach the bank for clarity on these. Some financial institutions give relaxation towards initial down-payment and one can even avail a 0.5 per cent discount as well. A car loan seeker should look for the cheapest loan for different tenures. If the loan is for three years, SBI emerges as the best bet. The bank’s offer of a fixed rate for three years makes it an attractive proposition. The average yearly rate comes to 8.87 per cent - the lowest. In terms of Equated Monthly Installments (EMIs), a loan of Rs 3 lakh for three years would lead to an EMI of Rs 9,400 in the first year and Rs 9,592 in the second and third year. However, a car buyer has to fork out 15 per cent of the total cost as SBI lends only up to 85 per cent of the car’s value (on road price) for new as well as second-hand cars. For loans with tenure of three-seven years, Canara Bank has the best offer. For instance, a car loan of Rs 7 lakh for five years would mean that the average rate is 9.2 per cent a year. The EMI will work out like this - Rs 14,362 for the first year, Rs 14,638 for the second year and Rs 14,712 from third to fifth year. The only drawback is that Canara Bank does not provide four-wheeler loans for tenures above six years. The bank funds 90 per cent of a new car’s ‘on-road’ price. For used cars, loans are given only up to 75 per cent of the car’s value. In comparison, ICICI Bank’s EMI for the same loan would come to Rs 16,379 at an average rate of 14.25 per cent. While offers of public sector banks are quite impressive, the process could be time consuming. This is because they follow a centralised loan approval system that leads to delays in sanction and disbursal. Also, they are more stringent as far as the loan-to-value percentage goes. If the loan seeker is unable to shell out the required 85-90 per cent, approaching private banks through direct selling agents (DSAs) or dealers will help. In fact, some DSAs claim that they can get you a 100 per cent loan on select models. Like mutual fund distributors, both dealers and DSAs normally have partnerships with as many as four-five banks. This helps them get you a better loan-to-value deal or even rates, at times. Labels: Car-Loans, Financial-Institutions, Government-Banks, Second-Hand-Cars
Thursday, 2 July 2009
Times sure are changing in the Indian automotive industry. First there were a slew of new car launches which put cars back in minds of consumers, and then came the low interest rates on car loans. Recently State Bank of India (SBI) slashed interest rates to a mere 8 percent. At the same time other banks continue to peddle car loans at around 10.5 percent to 12 percent. As soon as SBI announced the rates, other banks too felt the heat. Since nobody wants to be left behind in the race for a good business, more banks are planning to bring down interest rates on their own. This means that the Indian car industry will be back in good business after the slowdown. Indian car manufacturers have been whining about high interest rates on car loans for the last couple of years. They were particularly affected during the economic slowdown, when interest rates continued to remain high and cars sales remained low. Car buyers in India preferred to stay away from the showroom for most part of 2008 and early 2009. Moreover the deficit in Tata Nano bookings was also attributed to this factor. But come July, things seem to be changing for the better. There is new enthusiasm in the car industry. Car loans are falling and car sales are expected to go up. Probably some of them would include Honda Motors owing to Jazz, Maruti Suzuki, Hyundai and General Motors. It is well known that at least 75 percent of the car buyers in India depend on car financing. If interest rates on car loans are going to be low, the consumer base will certainly increase and thereby deliver good benefits to car companies and the banks alike. Labels: Car-Loans, Interest-Rate-On-Car-Loans
Wednesday, 25 March 2009
Just after a day of Nano launch, it has created a rave across the country grabbing lakhs of booking applications. Everyone is moving ahead to buy one small car for their family. The hype that was created when the Nano was unveiled at the Auto Expo 2008 is still fresh in the minds of car enthusiasts. SBI branches are receiving a tremendous response for Nano booking pouring in from all parts of the country. Amazingly, State Bank of India has alone distributed lakhs of applications for Nano booking. And this really shows the rustling interest of car enthusiasts for buying the car. SBI has tied up with Tata Motors to manage the Nano booking. At present, application forms have only been distributed. The filled applications will be received by all SBI branches, Tata dealerships, and other Tata outlets and financiers between April 9th and April 25th 2009. The applications will be processed with the help of SBI’s cash management product, SBI Fast. The bank has also set up a 24x7 helpline service to ease the booking process. Additionally, SBI loan product will ensure applicants for booking the Nano by financing 100 per cent amount at a low down-payment amount starting from Rs 2,999. Moreover, the buyers can avail Nano car loan up to a maximum period of seven years for 11.75 to 12 per cent interest rate. This is the scenario within one day of its launch. Let’s see what more the destiny holds for Nano in the coming days. Labels: Car-Loans, Nano, Tata-Motors
Tuesday, 24 March 2009
Tata Nano will be available through a special booking process due to initial limited production of the car. Following the launch, it will be displayed at all the Tata dealerships and authorized outlets from April 1st 2009. Thereafter, you can book your Nano by filling the application from that will be available at Rs 300 from April 9th 2009 till the end of day April 25th 2009. You can avail these application forms at about 30,000 locations across 1,000 cities at the Tata Motors dealerships, branches of the State Bank of India (SBI), other financiers, and Tata’s outlets including Westside, Croma, Titan showrooms, and Tata Indicom exclusive stores. You can either make the entire booking amount on your own or take financing of the booking amount. To avail finance, you need to pay an amount of Rs 2999 to the financier who will submit your application to the SBI on your behalf. The company has tied up with 15 banks including the ICIC, Corporation Bank, and the Central Bank of India to provide easy car loan to its customers. Tata Motors will announce the allotment of 100,000 cars within 60 days of the closure of bookings through a computerized random selection procedure. It will be a lucky draw where only the lucky winners will be able to drive the Nano. And the deliveries of the allotted cars will commence from July 2009. Another best thing is that if in case you are not allotted the Nano you can either take back the booking amount or you earn an interest in the second phase allotment announcement. You can avail an interest rate of around 8.5% on your booking amount for retention period between one to two year and 8.75% for a retention period of more than 2 years. Labels: Car-Loans, Nano, Tata-Motors
Thursday, 23 October 2008
There’s good news for car buyers! For all those who were planning to buy cars and were pushed back by inflation and high car loan rates, have now got a perfect time to rejoice. You can now make up your mind to buy a new car. RBI has reduced the repo rate by 100 basis points and this must have given a sigh of relief to all those who were continuously stressed under spiraling car loan interest rates. This will definitely improve the status of liquidity crunch in the finance market and boost the sentiments and aspirations of Indian car consumers. With this, the car sales are expected to push up and the piled car stocks will be reduced. Expensive financing will not restrict the consumers from buying a new car anymore. So what do you say, will softening of the interest rate push car sales? Will people prefer buying new cars now? Labels: Car-Loans, Car-Sales, New-Car
Thursday, 31 July 2008
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? Labels: Car-Finance, Car-Loans, Car-Manufacturers
Thursday, 24 July 2008
Car manufacturers are expecting a revision in cash reserve ratio that would again leap the interest on car loan offered by private banks and other financial institutions. The issue may get cleared after the Reserve Bank of India reviews its monetary policy at the end of this month. With these expectations, car manufacturers are pushing car sales. At present, the car loan interest rate is 15% that gives a monthly installment of Rs 2,350 per lakh. If by this month end, the interest rate increases, then the loan interest will nearly touch 16% resulting in a monthly installment of nearly Rs 2,395 per lakh for the same tenure. In order to cope up with the expected rise in interest rates, car manufacturers have put in their heads and hearts to wrap up the deal, remold marketing strategies, and compel waning customers. They are offering attractive discounts and schemes but no freebies to lure customers. They are simply trying to strengthen their internal channels and extend sales with existing customers. Labels: Car-Loans, Car-Manufacturers, Finance
Friday, 20 June 2008
Nano ready to roll out with expensive loans! Tata’s newest and cheapest car is ready to roll out on Indian roads. The car has brought a great threat to car financers. It is believed that for a car of Rs 1 lakh, none of the well-off people will apply for car loan. The loan applicants will include people with much lower incomes and the number would definitely be high. Most of the private financers have decided not to finance the Nano. The interest rate of the Nano car loan is expected to be about 18%. The company proposed the design and production of this car for the people who can’t afford high priced cars. But the increased loan interest is compensating for the low cost price. Don’t you think it’s again a big demarcation between the rich and poor? This is an expected delinquency during the launch. Rest, let’s wait and watch! Labels: Car-Loans, Nano
Monday, 16 June 2008
The car industry is already facing a credit crunch. Now, Car loans have become costlier. Earlier, the banks had raised interest rates by 75 basis points, after the RBI increased the Cash Reserve Ratio (CRR). Again, the RBI has raised the repo rate (the rate at which RBI lends to banks) by 25 basis points. This has added pressure on the banks to hike interest rates on loans. This move will affect the whole of the banking sector as well as the car industry. However, the apex bank has resorted to this hike to control inflation in the country. Labels: Car-Industry, Car-Loans
Saturday, 19 April 2008
You know that banks love loans and borrowers. They love to net customers with various loan offers and can go to any length to do it. Forget home loans, the latest trend is car loans in banking circles. Many public sector banks have already started wooing customers with different offers. After noticing that car loans were going slow due to high interest rates, the banks have devised ways of making it look more attractive. The Bank of India (BOI) and Union Bank of India (UBI) have already reduced interest rates on car loans. The biggest banking chain State Bank of India (SBI) Mumbai zone has recently organised a special rally for its customers to promote car loans in the month of March. The rally is open to all its customers in Mumbai and Thane. The campaign is expecting to last till April 20. The winner of the first prize will get a chance to go to week long trip to Sydney. With this type of attractive offer it is clear that banks are really keen to give car loans. Labels: car rally, Car-Loans
Thursday, 20 March 2008
Hyundai’s women’s day with Santro scheme has worked magic. The company followed a soft approach towards the rising number of working women drivers and managed to successfully attract customers. It had offered a women’s day special scheme on the Santro Xing model starting March 1st.
A 50 % waiver on loan processing fee and loans at 0.75 % lower rate of interest than market rate were offered that brought the car loan percentage to 13.5 or 14 percent. After the success of this scheme, Hyundai has extended the scheme for the entire month of March. Labels: Car-Loans, Car-Sales, Hyundai
Tuesday, 22 January 2008
The much hyped 1-lakh car “Nano” made its appearance at the recent Auto expo in New Delhi. It has come as a blessing in disguise to many banks and financial institutions that over the years have helped millions of Indian middle class families to own two- and four-wheelers. Now, many banks are considering special loan schemes for the Nano on the lines of two-wheeler loans. It shouldn’t be a matter of surprise that in the near future, banks and financial institutions will call up prospective customer offering them a loan for the Nano. The loan is expected to cover both the cost of the car as well as its running cost. Public as well as private banks would definitely take this opportunity to expand their business. The only worrying factor among people could be the rate of interest on such a loan because the current interest rates on car loans are very discouraging. According to a survey, it’s confirmed that the rate of interest on Tata’s new small car could be a bit higher than other car loans. For a loan amount as low as 1 lakh for a car, a slight push in interest rates shouldn’t really make a big difference to people eyeing the car. Labels: Car-Loans, One-Lakh-Rupee-Car, small cars, Tata Motor
Thursday, 26 April 2007
If you have been planning to buy a car, this is just the right time to do it. It is because most carmakers and dealers are doling out huge discounts or freebies on cars to generate more sales. So you’d better make hay while the sun shines. Huge discounts are being offered on car prices due to an increase in the car loan interest rate. However, considering the fact that in India about 80% cars are still sold by means of a car loan, carmakers fear a plunge in sales in the coming days. So, they are offering discounts or freebies on cars to lure customers back to their showrooms. The Hyundai Accent can be yours now for Rs. 70,000 less than its normal price. Besides low sales, Hyundai is offering this discount to make way for the Hyundai Verna, its new model. Also, the Hyundai Santro can be bought at a lower interest rate of 8.99%. Also on offer with it are freebies like an MP3 player, 3rd year warranty and exchange bonus. Another car that is available with an attractive scheme is the Honda City ZX, the top-ranked mid-sized car. It can be yours now with a 100% finance scheme available for 84 months. An extended period to pay off the loan means lesser EMIs, which will suit the pocket of most customers. You can buy the Tata Indigo LX DiCOR at a lower interest rate of 9.99% for a period of three years. General Motors is also offering customers an option of lower interest rates of around 10% or free services or accessories worth Rs 20,000 on Chevrolet Aveo. All other GM cars are also on offer at an interest rate of 10% only. Small cars from Maruti Udyog will also cost cheaper now as the company has increased rebate on them from Rs. 5,000 to Rs. 15,000 to reduce the cost of ownership. So, if you have been planning to buy any of these cars, there can not be a better time than now to bring it home. It will not just be lighter on your pocket but you can avail of freebies and other attractive schemes as well. Labels: Buy Car, Car-Loans, Chevrolet, discounts, Hyundai, Maruti, Tata
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