India’s largest private sector lender HDFC Bank has recently launched its newest service in regards to car loans, which promises a 30-minute car loan for all existing customers and non customers. The HDFC Bank ‘Xpress Car Loans’ – an end to end digital new car loan journey — comes at a time when quick delivery has become the hot topic in the country. The lender has claimed that this is the first time a service like the express car loan has been launched in India.
“The Bank has integrated its lending application with automobile dealers across the country. This industry first facility (HDFC Bank Xpress Car Loan) is expected to revolutionise the way car financing is done in the country,” HDFC Bank said in a press release dated May 9, Monday.
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The HDFC Bank has created a comprehensive, faster, more convenient, and inclusive digital journey for car buyers, the lender has said. This will help simplify the car purchase process and drive car sales across the country including in the semi urban and rural areas. Before the launch of the HDFC Bank Xpress Car Loan facility, it usually took the bank and other lenders 48 to 72 hours to process an auto loan for borrowers.
To begin with, HDFC Bank envisages 20 per cent to 30 per cent of customers (for loans up to Rs 20 Lakh) to avail of this facility. This facility is at present being offered for four wheelers and will be gradually rolled out to two-wheeler loans.
“HDFC Bank has been a pioneer in Digital innovations,” said Arvind Kapil, Country Head, Retail Assets, at HDFC Bank on the lenders express car loan service. “Now we are stepping up by launching end-to-end digital car loan solution for existing as well as new customers. Xpress Car Loans by HDFC Bank, will be an industry defining automotive lending journey. It will be available across all our branches, dealerships and eventually on third-party aggregator platforms,” he said.
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Car loan is the biggest ticket item after home loan, for which a customer borrows money from the bank. “While the automotive ecosystem has evolved, there is still a significant opportunity to unlock value for customers – particularly in semi urban and rural India), by transforming the customer experience. Digital is a way of life for us at HDFC Bank, and we strongly believe that it can shift our trajectory from incremental to exponential growth,” Kapil added while speaking about HDFC Bank Xpress Car Loan.
The Indian automotive industry is poised to become the third largest in the world in the next five to seven years with 35 million new vehicle units per year of sales. In about a decade, this is estimated to result in over 350 million 4-wheelers and over 250 million 2-wheelers, hitting the road. The HDFC Bank Xpress Car Loan therefore seems to come just in time.
