State Bank of India, the country’s largest bank, has given relief to auto dealers. In fact, the bank has Extended the period of Repayment of loans of vehicle dealers facing shortage in demand. SBI Managing Director (Retail and Digital Banking) PK Gupta said, “We are constantly talking to vehicle dealers and in times of difficulty the bank is extending the time for loan repayment in many cases.” With this, he said that the loan repayment period is generally 60 days but the bank has increased it to 75 days and in some cases to 90 days.
PK Gupta said, ‘As a bank our focus is only on the financial side. Our main focus is to provide loans to car buyers at a cheaper rate. We also provide loans to dealers who buy cars from manufacturers, but as far as demand growth is concerned, only steps can be taken by the government to intervene in this direction. Gupta said that in recent months, due to various reasons, there has been a decrease in loan from banks for vehicles.
Meanwhile, State Bank of India chairman Rajnish Kumar said that the country’s economy needs a boost as the demand for loans has slowed down. Though there is a lack of demand for credit in the economy, there is no restriction on the supply side as public banks have a lot of capital.
Rajnish Kumar told the media, ‘Demand for debt is weak in the economy. The economy needs encouragement. Anticipating the positive effects of the monsoon, he said, ‘There is no shortage in favor of supply. More or less public sector banks have sufficient capital and the bank rate is also low.