In past recessions, the wealthy were insulated by their money, but not this time. This recession is sparing none from its clutches. As a result, the luxury car sales are off by at least one-third compared to last year’s numbers.
My friend was planning to buy a car, but the prevailing circumstances just did not let her do so. The reason being both my friend and her husband were working with a good Multi National Company (MNC) and could afford a good car, but my friend was laid-off during the ongoing recession. She did get a job, but at half the salary that she was drawing in her previous organization. All their dreams of buying a car suddenly crashed. However, with the slash in the interest rates announced by PNB, they are again planning to buy a car.
Punjab National Bank, the second largest public sector bank in India, has entered into a pact with Hyundai Motor India Ltd for auto loans. The pact will accelerate car loan disbursals for Hyundai vehicles and also offer competitive auto loan schemes for Hyundai’s potential customers across India.
This tie-up will help both the partners to reach out to wider market and make loans convenient and easy to finance.
The State Bank of India (SBI) is not behind. After causing a stir in the home loan market, SBI has once again surprised competitors by slashing auto interest rates on loans for new cars. SBI will offer new car loans at a fixed rate of 10% for one year, 1.75 percentage points lower than the prevailing rate offered by market leader, HDFC Bank.
While, SBI is leading the change, other PSU banks, such as Bank of India, Bank of Baroda, Canara Bank, and Syndicate Bank are also following its footsteps. This will mean a better opportunity for those wanting to purchase a car.
Not only this, PNB has also reduced interest rates on retail term deposits by 50 basis points in the time slabs of 46-90 days and 180 days to less than a year from March 1. All these initiatives may boost the economy in this ongoing recession.
This is very good news for car lover that Punjab national bank cut the interest rate. My father want to purchase a car. Now I will suggest him to purchase car in installment with Punjab national bank.
Comment by Vibha Sharma — March 3, 2009 @ 7:55 am
Its a good information for me. I like buy a new car with in a month
Comment by Vishu Thakur — March 12, 2009 @ 12:48 pm