A strong domestic market or economy gives rise to a certain income class of people who want to get a life that is filled with comfort and thus starts the rise of an aspirational class. It is the aspirational class that is spending their income on cars and homes and is getting loans through EMIs.
One of the most common aspects of the growing economy is that its retail loan segments start to grow as people aim for new things. In India, one of the common signs of how the economy is performing is about the automobile sector and checking how it’s bringing growth in the market.
The segment of automobile and its ancillaries industries and auto loan companies is the one from which one can state how the economy is running in real time. If a person wants to take a vehicle loan, then they can find an agent from a DSA app and contact them to get the best auto loan interest rate in the current market situation.
In this blog, we will look into the aspect of auto loans and what are the favorable schemes that banks offer for the government employees of India.
Auto Loan Industry and Its Forecast
One of the most prominent factors in the market is job creation in Tier 1 metros and cities, which is attracting a new generation of citizens who are more into consumption parameters. They are the ones who are taking auto loans.
As per the recent market study, the rise of electric vehicles has pegged an interest in the hearts of consumers, and auto companies, along with fintech startups, are now looking for new ways to get customers, which is adding new revenue streams for the companies.
This disruption and change in consumer behavior is helping the market to shift towards more consumption, and that is the reason why banks are leveraging the popularity of automobiles and helping first-time buyers to get loans comfortably.
What is Making Auto Loans More Popular in This Market
The popularity of this loan franchise is not happening randomly. There is a structural change in the market, which allows automobile companies to record more sales and helps to increase the demand for auto loans and insurance.
In recent times, the RBI has stated that the consumption pattern is shifting from assuring security-based purchasing to making an aspirational choice in life. For example, auto loans are more expensive than home loans, which helps to increase car sales.
Analyzing the Auto Finance Trends of India
Multiple factors can be used to build a direct correlation between the rise in auto loans in the market and the factors making this shift.
- Demands for EVs
The demand for EVs has recently shown an uptick and is making some transformational changes in the industry. Automobile companies are transitioning to building EV vehicles, and quality cars are now in demand in the Indian market.
- Car Purchasing Interest in Tier 2 and Tier 3 Cities
In this segment of the country, there were first-time buyers of many things, and people in the Tier 2 and 3 regions are willing to get two-wheelers and four-wheelers for the first time. One can get help from a personal loan DSA or a car agent who can guide the customer about the best interest rate available in the market.
- Digitization of Loans
The next aspect, which is also a reason for the increase in auto loans, is the first disbursal and claim process through the digitization process of the loans. It helps to streamline the loan approval experience and makes the auto loan process fast and effective.
Types of Schemes Offered By Banks For Government Employees
There are several tpes of car loan schemes which are being offered by some of the banks for the government employees of India. Some of them are as follows.
- Banks offer employees car loans for a tenure of up to 84 months, which significantly reduces the monthly interest payments.
- Banks also offer 100% on-road funding of the car with zero downpayment from the customer.
These are some of the key benefits that a person can get while buying a car if they are employed in any government sector or a company.