Aatmja Kumari(Intern Journalist): Due to the vigilance of the financial companies regarding auto loans, there is no benefit of increasing demand. It is believed that Naveen Soni, Senior Vice President of Toyota Kirloskar Motor, a large company in the sector. According to Naveen, there is an increase in demand in the auto mobile sector, but due to excessive vigilance by banks and NBFCs in disbursing loans, the demand is not being sold as much.
Naveen informed that with the start of the festive season, companies are getting 20 to 30 percent more orders than in July. He said that the problem is from banks and financial companies, they are showing great caution in the name of lending. According to him, the situation looks very positive according to the new order. There are better indications every day, although despite the improvement in the supply chain, the time from receiving orders to the delivery of vehicles to customers has increased. Delay from banks and financial institutions is important in this.
According to Naveen, banks have become overly cautious about disbursing loans. Even if the customer has defaulted on a small amount 10 years ago, it has not been easy to get a vehicle loan. With this, at the same time, the customer used to get a loan of 80 percent of the total price on the CIBIL score, now banks are giving only 60 percent loan on it. Along with this, field work is also taking longer due to the pandemic.
According to Naveen, the industry does not want banks to distribute loans with full vigilance even in the full time of this challenge, although banks and financial institutions should also avoid excessive caution at this time.
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