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Last Updated : Jan 10, 2020 12:20 PM IST | Source: Moneycontrol.com

Maruti Suzuki-Kotak Mahindra Bank to provide higher financing, slash down payments from 20% to 10%

This is presently a pilot project, effective till March 31.

Maruti Suzuki
Maruti Suzuki

Buyers can cheer as Maruti Suzuki and Kotak Mahindra Bank have launched a special scheme to provide higher financing for on-road prices, slashing customers’ out-of-pocket down payments, The Times of India reported.

For example, for an entry-level car costing Rs 4.5 lakh on road, the out-of-pocket down payment by customers may reduce by half from 20 percent to 10 percent, i.e. Rs 40,000-45,000.

This is presently a pilot project, effective from January 1 to March 31, Shashank Srivastava, Director (marketing & sales) at Maruti Suzuki, told the paper. The automaker is in talks with at least four to five other major banks for similar schemes, he added.

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Srivastava added that the initiative would “revive the industry” by reducing the burden that the customers, especially those buying entry-level vehicles, face due to high vehicle cost and enhanced down payment obligations. “Down payment will be lowered by 5-10 percent of on-road price through this,” he told TOI.

Within the current framework, banks finance 80 percent of the vehicle’s on-road price, while the rest has to be paid upfront by the customer. With car prices on the rise and the tight financial situation, the burden on customers has increased as banks try to stave off freely lending.

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First Published on Jan 10, 2020 12:20 pm
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