Chennai: Even as RBI extends the moratorium on existing loans, car companies are offering similar EMI holiday schemes for new car loans. Companies like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra and Toyota Kirloskar Motor, for instance, have announced similar financing schemes which will allow you to buy your car and start paying your EMI 2 or 3 months later.Volkswagen will come out with an EMI holiday scheme in a week, said the company spokesman. Others like Tata Motors have rolled out schemes that offer very low initial EMIs (Rs 5000) and longer duration loan tenures to attract customers back to the showroom.
On Friday, car market leader Maruti Suzuki tied up with Cholamandalam Investment & Finance Company to announce a Buy-Now-Pay-Later offer which will allow customers to defer their EMIs by two months if they buy their vehicle on or before June 30. Shashank Srivastava, executive director (marketing & sales), Maruti Suzuki said, “It is aimed to offer comfort to buyers who may have faced liquidity crunch during the Covid-19 lockdown.”
The Maruti offer comes on the heels of similar schemes announced by rivals Hyundai, Mahindra and Toyota. Hyundai was the first to announce the ‘Hyundai EMI Assurance’ program earlier this month under which Hyundai will pay up to 3 car loan EMIs for customers working in private organisations who have lost their job. The scheme is valid till May 31.
Similarly Mahindra & Mahindra too has rolled out similar schemes including a 50% processing fee waiver and the option to Buy Now, Pay Later (90 days moratorium) for doctors. For SUV customers, it has launched options like Own Now, Pay in 2021 (Own your SUV today and start paying the EMI next year), 90-day moratorium (start paying the EMI after 90 days), 100% on road funding and 8-year tenures to attract customers. Said Veejay Nakra, CEO, automotive division, M&M: “The bedrock of our schemes is to provide financial flexibility and peace of mind to our customers.”
Others like Tata Motors are also offering 8-year loans and 100% on-road funding. It is also offering the option of just Rs 5000 EMI for 6 months on the Tiago loan of up to Rs 5 lakh. This gradually increases over a maximum tenure of 5 years. With pay cuts and job losses happening across industries, car marketers are using these EMI holidays to allow customers to defer payment till the liquidity improves.