Earlier this week, Hyundai Motor India introduced a program called EMI Assurance. In a nutshell, the initiative takes some load off by covering a couple of EMIs on the car buyer’s behalf. Although it is an interesting concept, it might not attract many takers because of the limitations. Clearly, Hyundai thinks so too as it has now come up with five additional schemes which help buyers on a much broader scale.
The first one – Three Months Low EMI. Those who opt for this scheme will avail the benefit of low monthly loan instalments for the first three months. The deficit amount will get split and added equally in the remaining EMIs. Customers can opt for this financing solution for any Hyundai model, but the loan tenure has to be between 3-5 years.
The second one – Step-up. Like the first one, this scheme is available with all Hyundai models, but only on a loan tenure of seven years. With those conditions met, a customer will have to pay an EMI of Rs 1,234/lac for the first year. So, if a car costs Rs 5 lakh, EMIs would amount to Rs 6,170 (Rs 1,234 x 5). From the second year onwards, the EMI would increase by 11 per cent every year until the loan ends.
The third one is called the Balloon scheme. Those who opt for this would need to pay a lower EMI, approximately 14 per cent lower than average EMI, from the 1st to 59th month. The last EMI would amount to be 25 per cent of the loan repayment. You can see what’s happening here, can’t you! The Balloon scheme suits those who aren’t sure about their financial stability in the near future but are confident of turning the game for themselves by the end of a five-year loan. And yes, this scheme too is available with all Hyundai models.
The number four is tagged Longest Duration Scheme – by far the simplest of the lot. As the name suggests, loan tenure of up to eight years is up for grabs. The idea is simple – breaking down the EMIs to the smallest possible figure. Mind you; this scheme is available only for select Hyundai models.
The last car financing solution is called Low Down Payment. Like the previous one, this too is available for a few Hyundai models. It allows for a minimum possible down payment on a car, with up to 100 per cent on-road funding available. Hyundai hasn’t mentioned, but this too will have its own set of terms and conditions.
Hyundai has categorically clarified that all these schemes are from different banks for varied sectors. What do you think of them? Will they help the carmaker roll numbers faster?
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