Car loans likely to get costlier
By Vaibhav Aggarwal
Aug 16, 2010
Print    Email    RSS   

Car loans for HDFC Bank and Kotak Mahindra Prime are likely to rise following the increase in prime lending rates (PLR) by the banks.

A senior executive of HDFC Bank said that the bank may be raising the car loan rates by 50 basis points in the coming few days. "The rates need to climb because cost of deposits has already been increased across the industry," said Ashok Khanna, HDFC Bank's senior executive vice president and business head for vehicle loans.

"Demand is very robust and waiting periods for cars is on the rise. A 50 bps hike in rates is not going to affect demand," Khanna added.

The bank is currently standing as the largest player in the vehicle finance space.

Kotak Mahindra Prime is also going to raise the rates of car loans from next week by 50 basis points. The NBFC currently gives car loans at 9.5 to 10.25%.

Axis Bank would also revise its car loan rates on Monday, said a senior executive of the bank.

"There are a number of reasons why the market for auto loans is doing well. The auto industry is doing well and penetration of car finance among customers is also picking up. Another factor is that the ticket size of loans is also increasing," said Sumit Bali, chief executive officer of Kotak Mahindra Capital.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Manage your loans, avoid recovery agents
Carnival of Indian Personal Finance Blogs #2
Carnival of Indian Personal Finance Blogs #3
Carnival of Indian Personal Finance Blogs #6
A chronicle of excesses by loan recovery...

Hello I am looking to renew my car insurance and I...
my loan no

SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive