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Banks To Cut Interest Rates On Car Loans
Reports say the car loan interest rates will be reduced by at least 25 basis points or 0.25% in a few days. The banks have been considering reducing lending rates on car loans after car sales reduced in the months following Diwali.
Car sales have been particularly slow in January. The recent decision by the Indian government to increase diesel prices will soon put brakes on the sales of diesel cars that have been selling well when compared with petrol cars.
The increased prices of cars and fuel have had an impact on sales. To add to this, expensive car loans did not motivate buyers to the showrooms. The banks have seen a sharp decline in consumers seeking car loans, and hence looking at reducing interest rates.
Car sales in 2013 are not expected to grow at a rapid pace. In fact, the Society of Indian Automobile Manufacturers has forecast sales to grow at less than 1 per cent. With banks pitching in with reduced interest rates on car loans, sales can be expected to pick up soon after cheaper loans are available.
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