Maruti and Mahindra Finance have tied-up to offer new finance schemes
Measures being taken to encourage and tap into demand
The country’s largest carmaker, Maruti Suzuki, has tied up with Mahindra Finance, one of the leading non-banking finance companies (NBFC) in India, to provide new finance options and schemes in a bid to encourage sales.
Under the tie-up, the offers now available to Maruti Suzuki car buyers via Mahindra Finance include:
Buy now and pay later: Moratorium scheme of two months to help customers manage their cash flows
Step up EMI: Unique step up option at a frequency of six months
Balloon EMI: Customer to pay 25 percent of the contract value as last EMI
Agricultural customer schemes, including quarterly EMIs
Low down-payment scheme
Other highlights of the retail loan scheme include on-the-spot approval for both salaried and No Income Proof (NIP) customers.
Flexible schemes including Balloon EMI, no field investigation scheme for contactless disbursement.
According to the partners, in the last five years, over 6,00,000 Maruti Suzuki customers have financed their cars from Mahindra Finance. With a dealer network of over 3,086 showrooms and a specialisation in budget cars, Maruti Suzuki could be poised to regain the sales crown in June 2020 from Hyundai, by tapping into rural demand. The tie-up with Mahindra Finance, which has a network of 1,450 branches, may help the company achieve this goal.
Speaking on the partnership with Mahindra Finance, Shashank Srivastava, executive director – marketing and sales, Maruti Suzuki India said, “Mahindra Finance is a very well networked NBFC across India and has the expertise in lending across all profiles, including semi-rural, rural and no-income proof customers. More than one-third of Maruti Suzuki’s retail sales come from rural India. We are extremely confident that this alliance with one of India’s largest NBFCs will help in increasing easy finance availability to our customers in the current challenging situation arisen due to COVID-19 pandemic. Customers will benefit from the range of offers like Buy now and Pay Later, Step Up EMI, Balloon EMI.”
Ramesh Iyer, MD, Mahindra Finance said “We believe that demand in rural will revive the fastest on the backdrop of a good monsoon expectation and less impact of the current pandemic. We are geared up to support and service all customers in these markets. Maruti Suzuki has been a very close and important partner to us. We believe providing solutions is more important than just offering credit. With our widespread branch network, serviced through employees recruited locally, we will be able to become a solution provider instead of only a financier to these rural customers.”
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