India's largest carmaker Maruti Suzuki India Ltd. has partnered with the HDB Financial Services Ltd. to provide new and used-car loans to customers. The non-banking financial company is a subsidiary of HDFC Bank Ltd., India's largest private lender.
With this, Maruti Suzuki now has retail finance tie-ups with 26 banks, seven NBFCs and eight regional rural banks.
"The partnership with HDB, will boost convenience by offering attractive loan schemes to customers. There is huge potential in the Indian automobile industry, and attractive retail financial solutions will help us put the market on a growth trajectory," Shashank Srivastava, executive director (marketing and sales) at Maruti Suzuki, said.
HDB Financial has a strong network and, being an NBFC, it overcomes challenges faced in conventional lending, thus giving credit access to customers in semi-rural and rural areas of the country, he said. "This also helps in increasing penetration of financial inclusion for potential customers.”
According to the NBFC's CEO G Ramesh, the partnership is a step towards expanding availability of finance across the breadth of the country. It will enable customised offerings across India including deep geographies, he added.
Also Read: Maruti Suzuki Says India Not Ready For EVs As Peers Take The Plunge
Maruti Suzuki has a dealership network of 3,066 new car retail outlets across 1,953 cities and towns. It also has 569 outlets of True Value, it's user-car sales arm, in over 280 locations.
Also Read: HDB Financial: Is HDFC Bank's ‘Mini-Me' On The Fast Track To Growth?
HDB Financial has a network of over 1,425 branches in 1,038 towns and cities.
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