Although car loan rates are the lowest in the last 12 months, auto dealers and marketers say banks and financiers are being extra cautious in view of the moratorium-related non-performing assets (NPAs) that they are expecting.
Kotak Mahindra Prime MD Vyomesh Kapasi said, “The car loan interest rates are down 125 basis points (100bps = 1 percentage point) year on year. The ongoing interest rates are the lowest in a long time with sub-9% for all segments and sub-8% for luxury vehicles. Even used car rates are now down to 12-12.5%.”
Car dealers say that most banks and NBFCs are offering longer tenure loans and that too for select customers.
M&M dealer Nikunj Sanghi of JS 4Wheel Motor said, “The festival