Andhra Bank is targeting to disburse Rs 170 crore additional car loans during the current financial year. Currently, it is extending car loans worth Rs 250 crore, said executive director Anil Girotra.
He said the demand for automobiles had started picking up. There is surplus in the rural incomes, he pointed out saying that the farm income had increased significantly. However, in the urban areas there is some financial crunch following job losses in some sectors.
Speaking to mediapersons after entering into an agreement with General Motors India here today to offer car loans to the latter’s customers, Girotra said the demand for housing loans was also on the rise after a lull for some months now.
The economic situation in the country is not grave as 70 per cent of the population was dependent on agriculture alone and the income levels of these people have not suffered due to the economic recession.
Andhra Bank would extend car loans at 11.25 per cent interest for women and 11.75 per cent for men on a three-year term, he said. However, this tie up was not exclusive with General Motors. Andhra Bank is already extending loans to buy Maruti products as well.
General Motors India sales director Sumit Sawhney said the company saw a good market in Andhra Pradesh, which sold about 8 to 10 per cent of the cars sold in the country.
The company witnessed a 10 per cent growth in sales from January to December despite the slowdown in the economy and sold about 66,000 cars across all segments and the state's share was about 6,000 cars. He said the company was optimistic of increasing the sale by about 20 per cent in the state during this calender year.
General Motors will pass on the benefit that it would get from the cut in the sales tax and excise duty to the customers.
