Public sector, Bank of Baroda (BoB) has entered into a Memorandum of Association (MoU) with the leading car dealer, Maruti Suzuki India Ltd (MSIL) whereby the latter would assess the advantages of the bank's car loan to its customers and further help them to apply for it.
With this move, the bank plans to increase its car loan portfolio and targets an overall credit growth of 25% for the current fiscal year.
As per the MSIL statement, if the paperwork is in order, the nearest BoB branch will process the application and give out the loan in 48 hours.
The car loan facility will be offered through 600 Maruti dealers from over 2,800 branches of BoB across the nation. Currently the bank is extending the car loan at interest rate of 11.25%.
BoB Chairman and Managing Director M D Mallaya said that in spite of the adverse financial conditions, the credit growth of the bank is aligned to earlier anticipation of 30%. He further added that "if you see year-on-year basis, from last November to this November we have a credit growth of 28 percent and further for this fiscal we expect a 25 percent growth."
Auto sales in the industry is expected to rise as there have supportive bank loans along with easing inflation.