In order to curb the adverse effects of demonetization, Honda motor company has joined hands with HDFC Bank, Axis Bank and ICICI Bank. The three banks will now facilitate buyers with 100 per cent loans on exclusive showroom price and will also provide assistance for on-road funding on various models.
The senior Vice President of Honda Cars India Limited was reported as quoting that there are various components which is involved in buying cars. As an effect of demonetization of 1,000 and 500 rupees bills, the cash components of the buying process of cars is expected to go down. Also, the limited distribution of monetary bills will affect the customers greatly. Hence, to ease the customers off the effect of demonetization and also to facilitate deal closure, the company has successfully negotiated 100 per cent funding on both exclusive showroom and on-road price with private nationalised banks like HDFC, Axis and ICICI.
The company has further quoted that, more than itself this move was taken to make sure that the new customers, flocking the showrooms post demonetization, do not face any hassle and face a smooth affair while buying cars.
With the details, ICICI bank has agreed to offer 100 per cent loans on exclusive showroom and 90 per cent assistance on on-road prices. On the other hand, HDFC provides 100 per cent loans on all Honda cars, except the Honda CR-V model. Similarly, Axis bank is set to offer 100 per cent funding for 96 months to all central government employees, with a minimum salary of 25,000, and to all the beneficiaries of the pension scheme.
Honda has added that this move would facilitate both salaried as well as self employed customers and will be available across all models in all authorised dealerships in India.