Borrowers will shortly be able to get car loans at lower interest rates from banks across the country. Bankers say that interest rates on them may be reduced by 25 basis points soon.
Talking about it, the CEO of Kotak Mahindra Prime, Mr. Vyomesh Kapasi said that the automobile sector, particularly the car industry, has witnessed a decline post Diwali. Due to the low demand for cars, an interest rate cut of at least 25 bps is expected in near future.
Kotak Mahindra Prime is a division of the private sector bank, Kotak Mahindra Bank and it is engaged in the business of providing loan facilities for all kinds of passenger vehicles, be it a new car or a used one. The lender had last slashed its rates for car loans in October, 2012, when it reduced the interest rates in this segment by 25-50 bps to 11.5 - 12.25 percent.
Reportedly, the speculations regarding a fall in car loans interest rates have been doing rounds since December last year.
The Society of Indian Automobile Manufacturers (SIAM) has recently forecasted that the consumer car sales may be recorded at less than 1 percent this year. After this prediction, bit is anticipated that banks may lower interest rates to drive growth in the segment.