Eminent banker and entrepreneur Uday Kotak said on Friday that banks are ready to lend for the purchase of vehicles and there is no issue of lack of money. Uday Kotak, managing director and chief executive officer of Kotak Mahindra Bank and current chairman of Confederation of Indian Industry (CII), the industry and commerce organization, also requested the government to address the supply bottlenecks faced by the auto industry amid the corona virus epidemic. .
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In a special plenary session of the 60th annual session of the Society of Indian Automobile Manufacturers (SIAM), an association of automaker companies, Kotak said the partnership between the government and the industry was “the key to coming out of the current uncertain times.” He said, “At this time, I do not see any issue of availability of money, which is available in sufficient quantity.” If there is demand, banks are ready to lend for vehicles. So, at this stage, I do not see any issue of interest rate or lack of money on vehicle loans. Kotak emphasized that banks are willing, willing and willing to lend for vehicles. He said, “What we need to ensure is to identify the appropriate customer with a logical credit history.”
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He said that it is positive for the Reserve Bank to make a big fall in the interest rate and the Fund’s Marginal Cost Based Interest Rate (MCLR) is continuously coming down. Came down A lot of work has already been done in terms of monetary policy. He said, the challenge is how do we speed up supply and demand. Kotak said, “The auto industry is facing supply side bottlenecks and there are supply chain disruptions due to the lockdown. A seamless approach is needed between the Center and the states so that the supply chain is not affected. He said that to improve the prospects of the automobile industry in the long term, investment in roads infrastructure is needed.
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