Maruti Suzuki India Limited (MSIL) and public sector lender Indian Bank have teamed up to provide auto loans to customers and facilitate financing, the company announced on Wednesday. Maruti Suzuki customers can avail the loans at over 5,700 Bank of India branches in metropolitan, semi-urban and rural areas.
With this, Maruti Suzuki customers will be able to avail loans of up to 90% of the car’s on-road price, in addition to no processing fees, free accidental insurance coverage up to Rs 30 lakh, a free FASTag and a repayment term of up to 84 months.
This program is available until June 30, the company said.
“About 80% of retail sales in the automotive industry are through finance and to enable our customers to make car buying decisions, Maruti Suzuki has initiated several partnerships with banks and NBFCs in the public and private sectors. We strongly believe that this partnership with Indian Bank will go a long way towards meeting the diverse financial needs of our customers,” said Shashank Srivastava, Senior Executive Director (Marketing & Sales) at MSIL. Srivastava added that customers will also benefit from an attractive interest rate and personalized EMI options.
Shanti Lal Jain, Managing Director and CEO of Indian Bank, said, “We are committed to making the auto finance experience more convenient for the customer, and a variety of interest rate options will be available for simplify the financing process. .”
The partnership comes after Maruti Suzuki announced a price hike starting April 18. He added that the weighted average increase across all models is 1.3% – ex-showroom price (Delhi). The company had said it was raising prices due to an increase in the cost of several inputs. MSI had already raised vehicle prices by around 8.8% from January 2021 to March 2022 due to steadily rising input costs.
Maruti Suzuki has retail finance links with 37 financial institutions, including 12 public sector banks, 11 private banks, seven NBFCs and seven regional rural banks.
Also Read: Maruti Suzuki To Raise Vehicle Prices From April 18; details here