Honda Cars India has become the latest OEM to announce tie-ups with financial institutions for finance schemes which promise to make buying a vehicle easier in current Covid-19 times. The company announced on Wednesday that it has partnered with HDFC and Kotak Mahindra Prime Limited in a bid to increase affordability and support car-purchase decisions.
Honda's tie-up with HDFC would allow customers to avail benefits of a unique combination of Step-up EMI and Balloon EMI at the end of the tenure. The company informs that under this scheme, for a tenure of seven years, customers can benefit in terms of lower EMI during most part of loan tenure and balance amount included in last EMI. The rate of interest is 9.25% and the EMI increases every year with the balloon EMI in the last month.
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While the partnership with HDFC covers all vehicles in Honda Cars India's product portfolio currently, its tie-up with Kotak Mahindra Prime introduces schemes for the fourth-generation City only. Under the program, customers can avail interest for five years at the rate of 6.99% and EMI for initial three months at ₹999 per lakh. An exchange bonus is also on offer for those interested.
Honda is banking on preference for personal mobility in order to stay safe from coronavirus to potentially boost sales. The company, however, also recognises that current times can be challenging in terms of personal finances and states that it is to address this that the schemes mentioned above have been introduced.
The company is also gearing up to launch the updated WR-V in the market while the 2020 City is also expected shortly after its initial launch plans in March were put off due to the national lockdown.
(Note: Please check with individual banks for complete terms and conditions of finance schemes on offer from OEMs)