Flexibility to choose tenure and payment options and option to avail loan on used or new cars to drive India car loan market during forecast period
to TechSci Research report, “India Car Loan Market By Type, By Car Type, By
Source, By Percentage of Amount Sanctioned, By Type of City, By Tenure,
Competition, Forecast & Opportunities, 2024”, car loan market in India is anticipated to grow at an impressive
rate during the forecast period owing to low loan interest rates and improved
standard of living. Also, car is considered as a status symbol which is also contributing
to the growing demand for cars, thus consequently driving car loan market in India.
Moreover, declining unemployment rates, increasing disposable income and high
per capita income level are positively influencing the car loan market in
India. Nowadays, financial institutions are offering lower interest rates with
flexibility in terms of finance required. Earlier, banks only used to finance
for 70 to 80% of the total cost of the vehicle; however, the trend is changing,
and now financial institutions offers 100% finance of the vehicle.
Browse market data Figures and Tables spread through
Pages and an in-depth TOC on “India Car Loan Market”
India car loan market can be segmented based
on type, car type, source, percentage of amount sanctioned, type of city, tenure
and region. In terms of type, car loan market in India can be bifurcated into
new car and used car. The demand for used car has witnessed an increase over
the past few years and the trend is likely to continue in the forthcoming years
as well owing to the low cost and high yield of used cars.
Major players operating in the car finance
market can be categorized into non banking finance companies (NBFC), banks and
original equipment manufacturers (OEMs). For instance, some of the major banks
in the country include State Bank of India, HDFC bank, ICICI bank and Axis
bank, among others. OEMs such as Toyota Financial Services India Ltd, have also
started providing loans for purchasing new vehicles. Another method for
availing a loan is NBFC, Mahindra & Mahindra Financial Services Ltd and
Shriram Transport Finance Co, Ltd, are some of the major companies in this
space. The companies operating in the loan market are offering flexibility in
terms of interest rates, service charge & fees and tenure in order to draw
customers. Also, loan process is simplified now. There is an option to apply
online for loan and fewer documents are required, owing to net banking, which
helps in eliminating the hassles related to long approval, which is positively
influencing India car loan market.
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“India car loan market is anticipated to grow at an impressive rate in
the next five years on account of factors such as booming automotive industry backed
by government support and presence of major automakers in the country.
Moreover, factors like flexibility in terms of tenure and payment mode and
negotiable interest rates based on credit score are further positively
influencing the market. Additionally, government is offering tax exemption upto
INR1.5 lac on loan taken on purchase of electric vehicles which is likely to
propel growth in the market during forecast period.” said Mr. Karan Chechi,
Research Director with TechSci Research, a research based global management
“India Car Loan Market By Type, By Car Type, By Source, By Percentage of Amount Sanctioned, By Type of City, By Tenure, Competition, Forecast & Opportunities, 2024” has analyzed the potential of car loan market across the country, and provides statistics and information on market sizes, shares and trends. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes emerging trends along with essential drivers and key challenges faced by India car loan market.