Karur Vysya Bank joins hands with Maruti Suzuki to offer car loans

Karur Vysya Bank has entered into an arrangement with Maruti Suzuki to offer 100 per cent on-road finance with a six month holiday period at attractive interest rates. The loans are available to both salaried and self-employed customers. In an announcement, the bank said that it was expecting to leverage the new car retail network of Maruti Suzuki with around 3,086 outlets across 1964 cities and towns. KVB has a branch network of 780 across 22 states and union territories.

J Natarajan, president and COO, of Karur Vysya Bank said that easy availability of finance was a key driver during these times. The lender offers customers an in-principle loan sanction in 15 minutes and existing customers of the bank can get their loans disbursed on the same day. The entire process from application to disbursement of the loan is digitised with no manual intervention.

“About 80 per cent of the new cars are typically financed via a bank in India. In light of the current situation, when the country is facing the challenges posed by the Covid-19 pandemic, such customised finance solutions will help boost customer sentiment. Our association with Karur Vysya Bank is another positive step towards providing our customers financial flexibility and ease of owning a new car," said Shashank Srivastava, executive director (M&S), Maruti Suzuki India.

Following the pandemic spread in India, Maruti Suzuki has tied up with financial institutions, including HDFC Bank, to offer bouquets of flexible finance schemes for new car buyers. It has tied up with Cholamandalam Investment and Finance Company to provide customised auto retail financing solutions to retail buyers. The 'Buy Now Pay Later' offer is aimed at providing customers with a two-month deferment of EMIs in order to offer comfort to buyers, who might have faced a liquidity crunch during the Covid-19 lockdown.