Hyundai and Bank of India enter into MOU for car loans

Hyundai Motor India Ltd (HMIL), the second largest car manufacturer and the largest passenger car exporter, in a bid to enhance financing options for its customers, signed a Memorandum of Understanding (MOU) with Bank of India, a major public sector bank today.

Under the MOU, Bank of India, a premier nationalized bank, will be financing prospective constituents to acquire Hyundai cars at an attractive rate of interest of 10.25% for 3 years and concessional processing charges (Rs.1,000/- flat ). The MOU, signed by Arvind Saxena, Sr VP, marketing & sales, Hyundai Motor India Ltd, and Nagesh Pydah, general manager, Bank of India, local head office, Chennai, will assist in giving a boost to auto sales at a time when the auto industry is facing a slowdown.

Bank of India, with a business mix in excess of Rs. 310,000 crore is a front runner in terms of profitability, growth and sustainability having won four awards recently in the banking space (K P M G, Business World, NDTV Profit, Dun & Bradstreet), with over 2,978 branches including 26 overseas centers (of which 2,575 are under the C B S Platform).

This strategic alliance with HMIL will help both the partners to reach out to a wider market and make available auto loans for prospective car owners on user-friendly terms.

Speaking on the occasion, Arvind Saxena, Sr. Vice President, Marketing & Sales, HMIL, said, “We are glad to partner with Bank of India as with its competitive products and wide reach we see it as value addition for our customers.

Considering the slowdown in the auto industry, this association with Bank of India at this juncture is an effort to ensure that we are able to reach out with more finance options with rationalized interest rates for the benefit of our customers.”

This tie-up is extended to cover financing by all the branches of Bank of India in India. The two partners will utilize and leverage each other`s strengths to cross sell Hyundai vehicles and the bank`s car loans and other schemes.

After signing of the MOU, Nagesh Pydah, General Manager, Local Head Office, Southern Zones, Bank of India said, “This tie-up with HMIL offers a tremendous opportunity for both our respective organizations to proliferate our businesses and contribute widely to demand creation in a scenario which otherwise is witnessing a demand contraction.

For Bank of India in particular it would result in addition to the customer base providing an opportunity to cross sell to them the other products of the bank as well. We are very bullish in the outcome of today’s event.”

Source: Hyundai India