These are testing times for the Indian automobile industry which sold zero vehicles in April owing to the coronavirus lockdown. As lockdown restrictions ease in most parts of the country sales have restarted but people are holding on to their cash looking at the economic uncertainties. This only means many auto companies are now coming out with unique finance schemes in the hope of attracting buyers.
Mahindra & Mahindra
A slew of finance schemes have been announced by Mahindra which it says will ease the burden on its customers during these challenging times. On top of the list is the option of buying a vehicle from the company now and start paying EMIs next year which gives you a window of at least 6 months before you start repaying your car loan. The company separately has also announced a 90 days loan moratorium which will let you start paying the EMI after 3 months. Apart from this Mahindra is also giving the consumer the option of keeping the first 3 EMIs low where instalments will start from Rs 1,234 per lakh. You can also pay 50% Less EMI for 3 months for every year of the loan tenure and do 25% of loan payment in the last month. High loan tenures are also being offered with the consumer getting the ease of repaying the amount in 8 years. A low interest rate of 7.75% is also an option while women get an additional 10 bps discount on the same. Finally, the company is also charging no prepayment or foreclosure charges from the very first day.
Tata Motors
Tata Motors has announced the rollout of “Keys to Safety” which promises the customers peace of mind and convenience during these challenging and uncertain times. The company’s most affordable car Tiago is now coming with a customised EMI plan that starts at Rs 5,000 every month for 6-months. This figure which is for a loan amount of up to Rs 5 lakh, then gradually increases over a maximum tenure of 5 years. At the end of the tenure the customers can either take full ownership of the vehicle or return the it in case of any financial difficulty. On its entire range of cars Tata Motors is offering 100% on road funding. Customers can also avail the option of long tenure EMI schemes of up to 8 years thus lowering the amount of their monthly EMI payment. The company is also offering special benefits of up to Rs 45,000 on cars purchased by corona warriors like healthcare professionals, essential service providers and the police.
Hyundai
The Korean car company has come out with its list of 5 unique customer centric car finance schemes. It begins with the 3 months low EMI option where the balance amount can be paid in equal EMIs for remaining loan tenure. A step-up scheme is also there where customers need to pay low EMI of Rs 1,234 per lakh for the first year for a 7-year tenure loan. From the 2nd year onwards; the EMI would increase by 11% every year till the end of the loan tenure. Then there’s a balloon scheme where the last EMI will be 25% of loan repayment. All 3 schemes are valid for all Hyundai models. On select models Hyundai is also offering 8 years of loan repayment duration or a zero down-payment with 100% on-road funding. An assurance program also covers up to 3 car loan EMIs and is valid for one year from date of sale of the car. It covers the customers under uncertainties such as employment loss in view of poor financial health/acquisition/merger of the company or due to any applicable laws.