Owning an elegant four wheeler is no distant dream with cheap car loan deals

Article

Profit making times are finally back! Yes, with season of festivals coming soon, automobile players have pinned all their hopes on it to retrieve the losses they have bored throughout the crisis period.

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Lately went by Navratras kicked-off a surge in demand course for the four wheeler was noticed. It is absolutely clear that hatchbacks and sedans are in fashion these days which directly means that their (car models) being out-of-stock with dealers is indication of the reason that auto industry is finally emerging.

Sky-rocketing demand levels are not only confined to the family-cars brand, Maruti alone, demand levels for other car brands such as Hyundai, Chevrolet and Honda too have went up by 7-10 percent in the continuing festive season.

But one question that has been troubling people is what on Earth has happened that has produced this fulminate positive shift.

Well, the solution to aforesaid question is super easy if one applies common-sense.Yes, it is the convenient and hassle-free car loan that has been the prime reason why there has been a sharp surge in the demand levels for the family-cars.

In their recent offers, banks like ICICI Bank, IDBI Bank, HDFC Bank, Kotak Mahindra Bank, Tata Capital, Canara Bank and State Bank of India are tempting car loan products to their service user base, which has resulted in the growth of car demands even from the backward zones of the country also.

Apropos, ICICI Bank, which is the largest private sector banking major within the Indian banking industry, is hailed for its splendid car loan solutions that can finance deals up to a maximum of 90 percent of the actual value of the vehicle with a repayment period of 5 years.

Thing to remember : Outstanding yearly income and excellent credit score are the assurance of speedy disbursal of such loan products.

HDFC Bank is another name that is becoming famous for its 100 percent car funding deals. Here also, the terms and conditions are different for a salaried person and a self employed person. Loan products with a repayment period of 1-7 years, are being rendered by bank.

Speaking of public-sector banks, State Bank of India is offering auto loan products at the fixed ROI of 8 percent which will be hiked to 10 percent from the advent of following year.

Canara Bank too is operating on similar pattern, rendering car loan aid at fixed rate of 8 percent in 1st year; 9 percent in the next year and 10.5 percent from the IIIrd year continuing to fifth year.

IDBI is also rendering alike deals. However, most beneficial offers are available with banks which have tied up with car dealers.

The recent event of Hyundai inking MoU with Bank of Rajasthan and Central Bank is indicative of fact that customers can now procure sedan loans at comparatively cheaper rate of interest and with commodious repayment time-period.

The monetary institutions are also making full use of recent relief supplied by Reserve Bank of India, by providing their customers with 10.5% rate of car loan products without charging no processing fee and foreclosure prices.

Aided by Reserve Bank, banks operating within Indian democracy, are passing the benefits to their clients thus, assisting industry to emerge out of the oblivion.

The author is a business writer specializing in finance and credit products. Know more on car loan, home loan visit www.paisawaisa.com/

• This page was last modified 11:47, 9 November 2009.