Financial Daily from THE HINDU group of publications
Saturday, Sep 07, 2002
Industry & Economy
Hyundai unveils loan scheme for NRIs
Mr B.V.R. Subbu, President, Hyundai Motor India Ltd, addressing newspersons during the launch of the company's new loan scheme for NRIs.
KOCHI, Sept. 6
HYUNDAI Motor India Ltd has tied up with HSBC and Citibank for an innovative financing plan for its car, Santro, targeted exclusively at NRIs.
This new scheme, launched exclusively for the Kerala market, offers tremendous interest advantages to NRIs, Mr B.V.R. Subbu, President, told newspersons.
The scheme will be open for a limited period - September 10-24 - after which the company plans to evaluate the response before deciding to continue it into December.
A decision on extending the scheme to other States will be taken after December, apart from expanding the scheme and including other banks.
There are two different interest rate slabs for the scheme, which is being implemented by the financial intermediary, Hyundai Finance.
The three-year loan charges interest rate of 9.5 per cent, while the five-year loan comes with 10 per cent on diminishing balance.
The NRIs would also benefit from the yearly depreciation of the rupee during the tenure of the loan, Mr Subbu said.
The idea of the scheme is to offer financing options to resident Indian family members of the NRIs who may not independently meet the required eligibility criteria to avail of a car loan.
Under the scheme, HSBC will offer loans to resident Indian family members with the NRI as co-applicant.
Mr Subbu said, "The NRI financing plan is yet another first from Hyundai. It is an attempt to reach out to newer buyer segments that have hitherto been untapped and is part of our efforts to make the Santro the preferred entry-level car.''
HSBC will also issue customers availing this loan facility a pre-approved free credit card and in-built financing on insurance premium for the first year. By the year 2004, Hyundai plans to step up production to 1,50,000 cars a year and start consistent export of Santro to the EU markets.
The company also plans to make India the production hub for Santro for the global markets, Mr Subbu said.
Currently, the car is being exported to SAARC countries, Morocco, Algeria and Indonesia.
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