Banks Concerned About Auto Loans

It is getting harder and harder to get an auto loan these days as the economy continues to fail and consumers find it harder to stay afloat. The banks are just as concerned, as there seems to be a lack of potential auto loan candidates as well – as no one seems to have the proper financing to pay back the auto loan.

The number of defaults in car loans has grown exponentially over the past six months and banks are more than a little concerned. The various banks, such as ICICI and HDFC are both worried because they have many a car loan out there that has been defaulted on, and plenty more that run the risk of doing so as well.

They say that the number of car loan defaults has risen 10-20% over the past few months, and monthly defaults are hurting them drastically. It isn’t only the nationalized banks either – the local and foreign banks are having just as much of a problem with the car loan defaults as well.

Some banks have just stopped giving out car loans for any two wheeled or commercial vehicles as they find that they have a higher risk of default. Those that are offering the auto loans are just being really particular about who they are offering their car loans to for fear that they will default as well.



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