India’s leading public sector bank, Bank of Baroda and Maruti Suzuki India Limited, signed a MoU where Maruti dealers will inform the prospective Maruti car buyers to opt for car loans from Bank of Baroda. According to the statement released by MSIL, if the paperwork is in order, the nearest BoB branch will process the application and disburse the loan in 48 hours.
The tie up will cover more than 600 Maruti car dealers and 2800 branches of the bank all across the country. The current lending rate is 11.25 percent for auto loans by Bank of Baroda. MSIL aims for 25 percent growth in its credit sales in the current fiscal year. Bank of Baroda also expects growth in its credit growth which is in line with its earlier projection of 30 percent growth in the current fiscal year. “If you see year-on-year basis, from last November to this November we have a credit growth of 28 per cent and further for this fiscal we expect a 25 per cent growth,” said MD Mallaya, Managing Director and BOB Chairman.
Small supportive fundamentals like easing off of bank loans and cooling down of inflation, etc. have helped in easing off liquidity conditions in the market. The industry and the government expect a boost in auto sales with the help of these conditions.