The private sector lender, HDFC bank has said that it is not going to cut its interest rates on auto loans segment, unlike State Bank of India.
A senior official of HDFC bank said that the bank will not follow SBI and will not reduce its interest rates on auto loans. At present, the bank charges anywhere from 11 percent to 13 percent on new auto loans whereas its rates go up to 16 percent in case of used vehicle loans.
It should be noted that India's largest lender, SBI, recently slashed its interest rates on auto loans and home loans segment by up to 0.5 percent.
On being asked whether the bank will cut its interest rates for auto loans, the Executive Vice-President and Business Head for Vehicle Loans, HDFC bank, Mr. Ashok Khanna said, "Not immediately."
He further added that HDFC bank has seen a growth in their auto loans segment by up to 10 to 15 percent annually. The bank sanctions loans worth Rs 1,500 crore every month, including Rs. 300 crore for used car loans, in the said segment and holds a market share of 22 percent.