Maruti Suzuki partners with HDB Financial Services to facilitate easy car loans for customers

India's largest passenger car maker Maruti Suzuki India Limited (MSIL) has partnered with HDB Financial Services Limited (HDBFS) to facilitate easy financing for customers, the company said in a press release.

The tie-up will facilitate loans for both new and used cars, the company release said. Maruti Suzuki has a vast network of 3,066 new car retail outlets across 1,953 cities and towns along with 569 outlets of pre-owned car retail channel True Value in over 280 locations, the release claims.

With this MoU in place, Maruti Suzuki now has a retail finance tie-up with 26 banks,7 NBFCs and 8 Regional rural banks, the release said.

The MoU was signed in the presence of MSIL's Executive Director (Marketing & Sales) Shashank Srivastava and HDBFS CEO G. Ramesh, the release said.

“Maruti Suzuki offers the convenience of buying a car along with other services such as finance, insurance and accessories under one umbrella. The partnership with HDB Financial Services Limited, will boost the convenience by offering attractive loan schemes to customers, " Shashank Srivastava said.

“The HDB-MSIL partnership is a great step towards expanding the availability of finance across the breadth of the country. HDB has a physical presence in more than 1000 locations with over 1425 branches pan-India. The partnership will enable customized offerings across India including deep geographies," G Ramesh said.

A subsidiary company of HDFC Bank, HDBFS  was incorporated in 2007, the release said.

There is a huge potential in the Indian automobile industry and attractive retail financial solutions will help us put the market on a growth trajectory. HDBFS has a strong network and being an NBFC it overcomes challenges being faced in conventional lending, thus giving semi-rural and rural India access towards credit. This also helps in increasing the penetration of financial inclusion for potential customers.”

MSIL offers loans to first-time buyers and other underserved-segments through our distribution network and digital channels, it said in the release.

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There is a huge opportunity in the market that is significantly underserved by the traditional players – now will have unparalleled access to finance through this partnership, the company said commenting upon the opportunity in the segment.