Maruti Suzuki ties up with HDB Financial Services for car loans

Maruti Suzuki India on Thursday said it has partnered with HDB Financial Services (HDBFS) to provide car loans to customers.

HDBFS is a subsidiary company of HDFC Bank.

The partnership will facilitate loans for both new and used cars. With this, the company now has a retail finance tie-up with 26 banks, 7 NBFCs and 8 regional rural banks, Maruti Suzuki India said in a statement.

"The partnership with HDBFS, will boost convenience by offering attractive loan schemes to customers. There is a huge potential in the Indian automobile industry, and attractive retail financial solutions will help us put the market on a growth trajectory," MSI Executive Director (Marketing and Sales) Shashank Srivastava said.

HDBFS has a strong network and, being an NBFC, it overcomes challenges faced in conventional lending, thus giving semi-rural and rural India the access towards credit, he added.

"This also helps in increasing penetration of financial inclusion for potential customers," Srivastava said.

MSI has a network of 3,066 new car retail outlets across 1,953 cities and towns. It also has 569 outlets of pre-owned car retail channel True Value in over 280 locations.

HDBFS has a network of over 1,425 branches in 1,038 towns and cities.

The partnership is a great step towards expanding availability of finance across the breadth of the country, HDBFS MD and CEO G Ramesh said.

It will enable customised offerings across India including deep geographies, he added.