Honda Cars India Limited has announced its partnership with Kotak Mahindra Prime Limited and HDFC Bank to design finance schemes to help customers reduce the financial burden of buying a new Honda automobile in the post-COVID-19 era. In the month of May 2020, Honda recorded dismal sales with only a handful of vehicles sold during the month. This was partly due to operational issues it faced due to the coronavirus lockdown. The manufacturer’s plans to resume production was delayed due to lack of manpower in its plant in Tapukara, Rajasthan. The manufacturer is yet to commence operations in its plant in Greater Noida, Uttar Pradesh as well.
In order to boost demand, Honda Cars along with Kotak Mahindra Prime Limited have designed a new finance scheme for customers looking to buy the current generation Honda City. Under this scheme, customers will be able to avail a low rate of interest of 6.99% on a loan tenure of 5 years along with low EMI for the first three months at Rs 999/ lakh. Honda is currently offering huge discounts and offers on the Honda City as well with up to Rs 1 lakh worth of benefits in the month of June 2020 and customers can also avail exchange benefits with this finance scheme.
Additionally, for the rest of the Honda range, which currently includes the Amaze, Civic and CR-V, Honda and HDFC are providing finance schemes that offer a unique combination of Step-up EMI and Balloon EMI of the same loan tenure. With a loan tenure of seven years, customers can benefit in terms of lower EMI during a significant part of the tenure and pay a higher amount for the last EMI. The rate of interest on this offer is set at 9.25%, while the EMI increases every year with the balloon EMI in the last month. In addition to the Honda City, the manufacturer is also offering exchange bonuses, extended warranties and service packages with the Honda Amaze model.
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