Sunday, 8 September 2019

India Car Loan Market to Grow at Brisk Rate During Forecast Period


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
According 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 consulting firm.
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.
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