Auto Loan Exposure Lowered

There have been rumors that HDFC Bank is considering lowering their auto loan exposure. They are easily one of the largest banks in India and many say that if they choose to lower their auto loan exposure many other banks will follow suit. They currently service Delhi, Kerala and Uttar Pradesh among other markets, but these are the three they are considering the auto loan plan with.

They are changing the way they do auto loan business because of the number of repossessions of automobiles that have been going on in these areas. The Delhi police have told customers to call them when they are have complaints against recovery agents or collection agencies.

The bank says that the government’s policy on being able to collect on auto loans has made it difficult to go after those people who are not paying. Banks are finding it increasingly difficult to get back the money or the cars when the auto loan is defaulted on. They say that they are talking to the individual state governments, but without a change in their policy they are going to have to change theirs.

They say that they will no longer be able to offer the auto loans that they have before in the same markets as their risk has gotten too high. With there being a slowdown already in the auto loan industry due to economic reasons, this new policy would make it even harder for customers to get an auto loan at all.




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