Maruti ties up with Punjab Sindh Bank

Maruti ties up with Punjab Sindh Bank  for vehicle financing

Maruti Suzuki India Limited, has tied up with Punjab & Sind Bank, on 2nd March 09, as they will offer retail finance facilities for car buyers. According to  this arrangement, the bank would focus attention on rural and semi-urban areas in Punjab, Haryana, Jammu and Kashmir, Chandigarh and Delhi. Moreover, Punjab & Sind Bank is also coming up with a scheme for inventory funding of Maruti Suzuki dealers at concessional and competitive rates to facilitate growth and boost small and medium enterprise sector.

According to a senior representative, given the huge size of rural and semi-urban market, Maruti Suzuki envisions this association as an opportunity to further augment its rural & semi-urban presence. He expressed his confidence by claiming that with Punjab and Sind Bank's vast network, its products will be easily available to rural & semi- urban customers through easy & hassle free loans providing by the bank at an affordable rates across India.

This tieup arrangement for car financing shall have focused attention on rural and semi-urban areas in the state of Punjab, Haryana, J&K, Chandigarh and NCR Delhi, where the bank is having a strong presence, Punjab & Sind Bank said.

As the mood in the private banking fraternity does not seem to have gotten lighter with the announcement by RBI to boost liquidity in the market place, Maruti Suzuki India Limited  is now increasingly tying up with a number of PSUs and RRBs for proving auto loans to its customers. Public sector banks like SBI, United Bank of India are coming forward and going aggressive with Maruti Suzuki customers. Moreover, consumers are also moving towards PSU banks because of lower interest rates being offered there. While car loan interest rates are hovering at around 15% and above at private sector banks, PSU banks dishing it out at as low as 11.75 to 13.75 % , as revealed by sources in the banking industry. In the past couple of months, the profile of companies financing Maruti Suzuki cars has changed markedly with PSU banks now offering loans to 60%  customers opting for finance against 50% a couple of months ago.