HDFC Bank's auto loans to have step-up repayments
MUMBAI: In a bid to expand the auto loan market in the midst of a slowdown, HDFC Bank has introduced a scheme that increases car affordability through step-up repayments and bullet repayments - in which the principal and interest of the loan are paid at one go. According to HDFC Bank executives, the step-up repayment feature would reduce installments by 22-25%, while the bullet repayment feature will enable them to pay equated monthly installments (EMIs) for only 30-50% of the loan amount. One out of every four cars that is purchased on loan, is financed by HDFC Bank. The country's largest auto financier is facing a slowdown as car sales have taken a hit. Car sales are slower because of five reasons: High fuel prices, availability of cab aggregators in cities, courts making it mandatory to...