ICICI Bank, the country's largest private sector bank, has slashed its auto loan interest rates by 0.3 per cent at 11 per cent from the previous 11.3 per cent. The announcement came on October 11, 2012 and all other major banks are expected to follow the suit.
The latest cutback on auto loan interest rates brings some joy to the Indian passenger car market, which has witnessed below par sales during the August and September months of the ongoing fiscal 2012-13. The car makers will also have some respite as they hope towards recuperating the lost sales during the upcoming festival season. ICICI bank appeals the Indian automobile enthusiasts to benefit from the special festival cutback in auto interest rates, which will remain valid for all loan sanctions till December 31, 2012.
Every year, it is the domestic October-November festivity period during which the automotive companies record their peaks sales for the season. The period also marks the time when most of the car companies dole out special season discounts, free vehicle insurance and loyalty bonuses along with several other goodies and freebies.
ICICI, HDFC and Vijaya banks also slashed their home loan interest rates in the country by up to 1 per cent on October 11, 2012. The trend was started by the country's biggest public sector banks like State bank of India (SBI), Punjab National Bank (PNB) and Syndicate bank.
