The way
home loan are dropping day by day, the rates of
car loan is also dropping. ICICI Bank had cut auto loan rates by 25-50 bps to 9.5%- 11.5%. Now Axis bank did the same, they have reduced the basis points by 50-75. Now you can take a car loan from axis bank @ 10% -10.5% depending upon the category of the vehicle and tenure of the loan.
Manju Srivasta, president, Retail banking at Axis Bank said that The cut is not in response to any players move. Based on customer research and interactions as well as the market feedback, we feel this is the appropriate time to offer lower rates for our customers, Whereas a spokesperson for ICICI Bank said, Our auto loan rates are in line with the competition and the payout (to dealers), at an average of 2 per cent, is in line with the competition.
On the other side HDFC Bank, is also offering auto loan at 9-11 percent depending on the category of the vehicle and the tenure of the loan.
Axis Bank is aiming to disburse Rs 1,000 crore
auto loans in the coming quarter. According to Srivatsa, the banks auto loans book has been growing at 35 per cent an a year-on-year basis
Faced with rising delinquencies and collection problems, ICICI Bank had more or less withdrawn from the auto loans market.
It is only in the past two months that the bank has re-entered the market.
ICICI Bank Managing Director and CEO Chanda Kochchar has said the bank is looking to grow its auto and home loan books.
