Maruti Suzuki ties up with Axis bank for easy financing

Automobile manufacturer, Maruti Suzuki informed the bourses on Tuesday of its tie-up with Axis Bank in a bid to offer easy financing options for potential car buyers.

The bank is one of the key partners of Maruti Suzuki for dealer inventory as well as for financing solutions. As part of the collaboration, Axis bank will offer attractive Flexi EMI options to ease the liquidity and repayment stress of customers. Some of them include a 100 per cent on-road funding for salaried customers for eight years, a step-up scheme with EMI starting at Rs 1,250 per lakh, a balloon EMI scheme and a low EMI scheme, for the first three months, starting with Rs 899 per lakh.

Elaborating on this customer-centric initiative, Shashank Srivastava, Executive Director (Marketing & Sales) of Maruti Suzuki India stated that the company was confident that its association with Axis Bank would help customers in offering convenient, affordable and cost-effective finance solution for buying cars.

The sales of passenger vehicles are expected to decline by double digits in the current fiscal due to the COVID-19 pandemic. According to Society of Indian Automobile Manufacturers (SIAM), the overall industry volumes might drop in the range of 25-30 per cent in the current fiscal. This has prompted car makers in the country to tie-up with banks and other NBFCs in order to offer attractive financing schemes to customers and boost retail sales.

At 3 pm on Tuesday, the stock of Maruti Suzuki was trading at Rs 6,237.35, up by 1.83 per cent or Rs 112.20 per share. Its 52-week high is recorded at Rs 7,755.00 and the 52-week low is Rs 4,002 on BSE.