Highlights
- New scheme targets buyers struggling with down payments
- Customers can build savings through recurring deposits
- Loan available for Alto K10, S-Presso, Celerio, and Wagon R
- Introduced in partnership with AU Small Finance Bank
- Bank can assess repayment discipline before loan approval
New Financing Model for Aspiring Car Owners
New Delhi, June 5: Maruti Suzuki India Ltd (MSIL) has introduced an innovative recurring deposit (RD)-backed auto loan scheme aimed at making car ownership easier for customers who face challenges in arranging the initial down payment.
The company has partnered with AU Small Finance Bank to launch the initiative, called “Suhana Safar”, which is being described as an industry-first financing solution for entry-level car buyers.
The scheme is currently available for four popular small-car models — Alto K10, S-Presso, Celerio, and Wagon R.
Helping Customers Build Financial Confidence
According to Partho Banerjee, Senior Executive Officer (Marketing and Sales) at Maruti Suzuki, the programme is designed for customers who aspire to own a vehicle but hesitate due to concerns about arranging a down payment or managing future monthly loan instalments.
Under the new model, customers are encouraged to develop a savings habit before taking a car loan. This not only helps them accumulate funds for the down payment but also demonstrates financial discipline to the lending institution.
How the Scheme Works
Under the “Suhana Safar” programme, customers first open a recurring deposit account with AU Small Finance Bank.
They then deposit a fixed amount every month for a period ranging from three to six months. The monthly contribution is generally set at around 80 per cent of the expected Equated Monthly Instalment (EMI) for the proposed car loan.
For example, if the estimated EMI for a vehicle loan is ₹10,000 per month, the customer would deposit approximately ₹8,000 every month into the recurring deposit account during the savings phase.
Savings Become Down Payment
Once the RD period is completed, the accumulated amount along with the interest earned is used as the vehicle’s down payment.
Importantly, the savings are not used to repay the loan itself. Instead, they help customers meet the upfront payment requirement while allowing them to enter the loan process with greater financial preparedness.
After the RD matures, customers can apply for a regular car loan from the same bank and begin paying monthly EMIs in the usual manner.
Benefits for Both Customers and Lenders
The scheme offers advantages for both buyers and financial institutions. Customers get time to build savings and gain confidence in handling future loan obligations. At the same time, the bank can assess the customer’s repayment behaviour through the recurring deposit history before disbursing the loan.
Industry observers believe the initiative could encourage more first-time buyers to enter the passenger vehicle market, particularly in the entry-level segment where affordability remains a key concern.
With the launch of “Suhana Safar”, Maruti Suzuki is aiming to make car ownership more accessible while promoting responsible borrowing and financial planning among customers.
