AUTO LOAN INDUSTRY

Presented By: Vinay Pratap Singh Neha Saini Mounika Palreddy Teena Bansal Nikhil Deshmukh Aakanksha Mathur

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Automobile Industry

Indian automobile sector has huge potential. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world The industry has a turnover of more than USD $35 billion Provides direct and indirect employment to over 13 million people. Production & domestic sales growth for last quarter is 7.1% and 9.3% respectively.
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Indian Auto industry : Among the top ten in the World

Two Wheelers

2nd

Small cars

3rd

Commercial Vehicles
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4th

CAGR: Automobile Industry

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Key Drivers of growth of Auto Industry

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Annual Income > 10 L 5 L - 10 L 2 L- 5 L 90 K - 2 L < 90 K Total

Number of households Number of households Growth in 2010 (Mn) in 2011 (Mn) 1.2 2.4 10.9 91.3 101.1 206.9 3.3 5.5 55.1 106 74.1 244 175% 129% 406% 16% -27% 18%

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Growth trend

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Growth Forecast of Indian Auto Industry

Passenger car production in India is projected to cross 3 million units in 2014-15. Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around 10% India is projected to be among top five automotive economies by 2025. Automotive Mission Plan (AMP), aims to make automobile industries' contribution to GDP more than 10% while providing employment to 25 million people .
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Auto Loan Industry

Indias auto finance industry is estimated at Rs. 60,200 crore for FY2011. HDFC lends up to 1500 Cr per month on vehicle loans, holding a share of 22% in market. SBI bank has 19% market share. SBI became aggressive in this industry by cutting interest rate to minimum 10.75% by 50 bps ICICI was market leader in auto loans till early 2008.
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Market Share: Auto Finance

Market Share

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Top Auto Finance Companies in India

Following is the list of top auto finance companies in India.

State Bank of India HDFC Bank ICICI Bank Punjab National Bank Axis Bank Citibank

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ICICI: Loan Features

Loan Amount Tenure Minimum 1L Maximum depends upon model variants 1 to 5 years + Rs.350/+ Rs.350/+ Rs.350/+ Rs.350/+ Rs.350/-

Service charges Master subtitle style : Rs.2500/Click to edit <2.5 L 2.5 to 3.9 L : Rs.3500/4 L to 4.9 L : Rs.4000/5 L to 9.9 L : Rs.4200/>10 L : Rs.5000/Pre Payment Charges LTV
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5% on the principal outstanding or interest outstanding for unexpired period of loan 90 % on Ex showroom price

ICICI : INTEREST RATE

Loan scheme TENURE Up to 2 yrs INTEREST RATE 15.75% - 17.00% p.a.

New Car 2 yrs 3 yrs 13.75% - 16 % p.a. Loan

Above 3yrs 11.5% - 14.75% p.a.

Used Car For all tenure 16.50% -18.50% p.a.

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ICICI: Eligibility Criteria

Particulars Salaried Individuals Self Employed Partnership FirmPrivate/ Public Individuals Ltd Co

Age

25 yrs- 58 yrs

28 yrs- 65 yrs

Existence for at least 3 years. Minimum PAT Minimum PAT (profit after tax) (profit after tax) of Rs. 2.00 of Rs. 2.00 lakhs lakhs. more than 3 years. more than 3 years.

Income

Click to edit Master subtitle style Gross annual income Gross annual of at least Rs. 2.50 income of at lakhs least Rs. 2.00 lakhs. employment stability -more than 2 years and current employment stability -minimum 1 year. more than 3 years.

Stability

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Categorization for new car loans

Category A+ Cars Audi, Porsche, Bentley

B+ Nissan Micra, Honda Civic Click to edit Master subtitle style C Maruti, i10

For new car loan customers can directly go to any icici bank branch and can apply for loan but for used car or old car loan customer has to go their headquarters and form their they can apply for loans which are located in every city. They wont entertain any customer for old or used car loan at any icici bank branch.

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Ways to apply for loans:

Online. Through dealers. Customers can directly approach them. They are having tie ups with various Click to edit Master subtitle style automobile manufactures form their they are directly attracting their customers.

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HDFC Bank
Loan Features:
Loan Amount Borrow up to 3 6 times of annual income Tenure Up to 60 Months Up to 2.5 Lakhs: Rs 2625 Over Rs 2.5 Lakhs to 4 Lakhs : Rs 3650 Over Rs 4 Lakhs to 5 Lakhs : Rs 4100 Over Rs 5 Lakhs to upto 10 Lakhs : Rs 4450 Over Rs 10 Lakhs : Rs 4950 Up to 100% for new cars LTV
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Processing Fee

Up to 80% value of car for used car

Car and cash loans:

After paying car installments on time for 9 months, Car N Cash allows you to avail of an additional loan till the extent of your original loan amount, at an attractive rate of interest. This top-up loan. This is the unique option given by only HDFC bank. It is the actual price of the manufacturer without any statutory taxes, state and road taxes.

Ex showroom Price:

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HDFC: Other Facility

HDFC : INTEREST RATE

Loan scheme TENURE INTEREST RATE 12 months up 11.25% - 12% p.a. to 3 years Above 3yrs 11.50% - 12.25% p.a.

New Car Loan

Up to 2 years 15.75% - 18.25% p.a. Above 2 yrs 15.75% - 17.75% p.a.

Used Car

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HDFC : Eligibility Criteria

Salaried
Age 21 - 65 Years

Self Employed
21-65 Years

Income Net Annual Income above Rs,100000

Net Annual Income Rs,60000 and minimum turnover of Rs4,50,000 per annum

Job Ex

Had a job of 2 years and Be in business for at least 3 Minimum of 1 Year at current Years working place

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AXIS Bank
Loan Features:
Loan Amount Loans offered from Rs. 1 lakh Tenure Processing fees LTV 1 year to 5 year Rs. 3500 to Rs. 5500 Up to 90% of the ex-showroom price on selected models

Interest rate
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12.5% to 15.00%

AXIS Bank : Eligibility Criteria

Salaried
Age 21-60 Years

Self Employed
21-65 Years

Income

Min. Net Annual Salary of Rs 1.5 lac p.a. for selected models and Rs. 2.5 Lac p.a. for others

Min. Net Annual Business Income of Rs 1.5 lac p.a. for selected models and Rs. 2.5 Lac p.a. for others As per latest ITR and computation of income Minimum 3 years in same line of business

Income As per latest salary slip or Eligibility Form 16 Employme Minimum 2 years of nt continuous employment
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Loan Features:
Loan Amount
4 times of Net Annual Income can be sanctioned.

Tenure

Up to 84 Months

Processing Fee 0.51% of loan amount, minimum Rs 1020/- and Maximum Rs

10200/-

85% of 'On Road Price' of car (includes registration, insurance and cost of accessories worth Rs 25000).

LTV
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90% in case of Corporate Salary Package accounts

STATE BANK OF INDIA : INTEREST RATE

Loan scheme TENURE All tenure INTEREST RATE For term loan :10.75% p.a. For overdraft : 10.75% p.a.

New Car Loan All tenure

Up to 3 years 17.25% p.a.

Used Car Above 3 yrs 17.50% p.a.

Up to 3 years 16.00% p.a.

Preowned Car
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Above 3 yrs 16.50% p.a.

SBI : Eligibility Criteria

Salaried
Age 21-65 Years

Self Employed
21-65 Years

Income Net Annual Income Rs. 250,000/- and above

Net Annual Income Rs. 250,000/- and above

Job Ex

2 Years in State / Central Government, Public Sector , Private company .

3 Years

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Punjab National Bank

features Loan Amount 25 times of the monthly net salary or Rs.25 lacs (for one or more vehicles), whichever is lower. Tenure Processing fees LTV
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For new vehicle 84 months For old vehicle-60 months @ 1% of the loan amount, with a maximum of Rs.6,000 For new vehicle 85% For old vehicle-70%

PNB interest rates

BPLR (For less 10.50% than 3 yrs.) BPLR (for above 11.00% 3 yrs) Base Rate BR+1.50% (BR=10.50%)

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PNB Eligibility Criteria

Individuals as well as Business Concerns (Corporate or non-corporate). Minimum net monthly salary / pension / income 20000/-. Income of spouse /Parent can be added.

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Citi Bank
Features Loan Amount Tenure LTV 90% of New car value 85% of old car value 12months-60 Months For new car-90% For old car 85%

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Citi Bank Interest Rates

Features For New Car For old Car 13.25% 16%

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Citi Bank Eligibility

Salaried Salary-Rs. 8000 Age 21-58 Income-Rs.60000 Age 21-65

Self employed

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Interest Rate Upto 3 years

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Processing Fees : Comparison

SBI
0.51% of Loan Amt Min: 1020 Max: 10200

HDFC
< 2.5 L: Rs 2625 Rs 2.5 - 4 L: Rs 3650 Rs 4 - 5 L : Rs 4100 Rs 5 10 L: Rs 4450 >Rs 10 L : Rs 4950

PNB

ICICI

AXIS
NA

CITI

@ 1% of the <2.5 L : Rs 3500/To 5500/loan Rs.2500/amount, 2.5 to 3.9 L : Rs.3500/- 4 with a maximum of L to 4.9 L : Rs.4000/Rs.6,000
5 L to 9.9 L : Rs.4200/>10 L : Rs.5000/-

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NBFCs
Non Banking Financial Corporations Financial Institution Not allowed to take deposits from public Not regulated by RBI

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NBFCs as Competitors

Mahindra & Mahindra financial services Ltd Kotak Mahindra Prime Ltd Tata Finance Ltd Shriram Transport Finance Company Ltd Sundaram Finance Ltd.

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Conclusion
Only 4% Indian population owned cars. vHDFC is market leader in auto loans. vSBI is giving head to head competition to HDFC. vNBFCs providing healthy competition to Banks. vAuto finance industry has grown at the rate of 13% over the last 5 yrs.
v

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Thank You
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