Maruti Suzuki-Mahindra Finance team up to provide car financing solutions to rural customers
Maruti Suzuki India (MSI) has teamed up with Mahindra Finance to “ease the finance availability for customers looking at personal mobility solutions during ongoing COVID-19 pandemic”, the company said in a BSE filing.
The coronavirus outbreak added to the woes of the auto sector that was passing through one of its worst slumps. The tie-up is aimed at pushing sales in rural areas, which have, so far, been spared by the virus.
Shashank Srivastava, Executive Director (M&S), MSI said, “Mahindra Finance is a very well networked non-banking finance company (NBFC) across India and has the expertise in lending across all profiles including semi-rural, rural and no-income proof customers.”
Follow our LIVE Updates on the coronavirus pandemic here
The tie-up will allow Maruti Suzuki customers to avail wide options for getting their car financed from Mahindra Finance including:
> 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: A customer can pay 25 percent of the contract value as the last EMI
> Agricultural customer schemes, including quarterly EMIs
> Low down payment scheme
“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,” Srivastava added.
Ramesh Iyer, Managing Director, Mahindra Finance, said they expect demand in rural areas to revive the fastest on the expectation of a good monsoon and a lower impact of the coronavirus outbreak.
“We are geared up to support and service all customers in these markets. With our wide-spread 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,” Iyer said.
Follow our full COVID-19 coverage here
Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.