- The schemes provide convenient repayment methods which should encourage customers to purchase new cars
- There are special schemes being offered to COVID-19 front-line workers like doctors, police officers, etc
- These schemes are only valid for a limited period, till end-June, 2020
Due to the situation caused by the coronavirus pandemic over the past few month, sales in the automobile sector have taken a massive hit. Mahindra has introduced some new finance schemes to encourage customers to purchase vehicles.
All the schemes mentioned below are being offered by Mahindra through various financial institutions and are valid till June end, 2020. These have been listed below:
- Own Now, Pay in 2021: This scheme allows customers to purchase the car today and begin their EMI payments from next year onwards.
- 90 Days Moratorium: Similar to the scheme mentioned above, customers can purchase the car now and start paying their EMIs after 90 days.
- 100% On Road Funding: With this, customers can finance up to 100 percent of the on-road cost of the vehicle, which means that there’s no need for down payment.
- Special Schemes for Women: This provides a 10bps (basis point) discount on the rate of interest paid by female customers.
- Balloon EMI: This scheme gives customers the option to pay comparatively lower EMIs for the first three months, after which the customer can pay 50 percent less EMI for three months for every year of the loan tenure (five years). Finally, 25 percent of the loan amount is to be paid on the last month of the loan tenure.
- Step Up EMI: This allows customers to take a loan with monthly EMI being as low as Rs 1,234 per lakh for the first year of a fixed loan duration. The EMI will rise by a set percentage every year from the second year onwards, till the end of the loan tenure.
- Highest Loan Tenure: Customers can take a loan tenure of up to eight years, which would help reduce the EMI amount considerably.
- Lowest Interest Rate: Under this scheme, customers can pay an interest rate as low as 7.75 percent on their loan amount.
- Hassle-free Financing: This means that customers don’t have any pre-payment or foreclosure charges right from the very first day.
- Yellow Board Funding: Mahindra is also providing funding for taxis on select models.
In addition to these schemes, the carmaker has also introduced special offers for COVID-19 frontline workers including doctors, nurses, paramedics, government officials, policemen, journalists, media professionals, and railway/airline staff. The offers are:
- Doctors: They will receive a 50 percent waiver on the processing fee, in addition to having the option to purchase the car now and get a 90 days moratorium (meaning EMI payment will start after 90 days).
- Police: With this, police personnel can avail higher funding schemes for more flexible payment.
- Pick-up truck owners: They can purchase a BS6 Mahindra pick-up truck and pay the same EMI as a BS4 vehicle.
- All frontline COVID workers will also receive special discounts and benefits on Mahindra vehicles.
The carmaker’s current model line-up consists of the KUV100, TUV300, Bolero, Scorpio, Marazzo, XUV300, XUV500 and the Alturas, all of which have been updated with BS6-compliant engines. Mahindra's next big launch is expected to be the all-new Thar which was seen in near production-ready form.
Mahindra has also introduced a new online retail platform (‘Own-Online’) along with the ‘Contactless Service Experience’ (which allows scheduling and pay for services online) in an effort to increase their convenience and prevent the spread of the virus.
Disclaimer: These schemes are only available till June 2020, and are subject to approval by financial institutions.