How Is Maruti Suzuki Making Car Ownership Easier For Small-Car Buyers?
Maruti Suzuki India Ltd (MSIL) has introduced an innovative recurring deposit (RD) backed auto loan scheme aimed at helping aspiring car buyers overcome one of the biggest hurdles in vehicle ownership arranging the down payment.
The country’s largest carmaker has partnered with AU Small Finance Bank to launch the “Suhana Safar” scheme, which allows customers to build savings gradually before taking a car loan.
The initiative is targeted at buyers of Maruti Suzuki’s entry-level and compact models, including the Alto K10, S-Presso, Celerio, and Wagon R. The company believes the scheme can help customers who are financially capable of managing monthly instalments but hesitate to purchase a vehicle due to concerns around upfront payments.
According to Partho Banerjee, Senior Executive Officer (Marketing and Sales) at MSIL, the programme is designed to give customers confidence in their ability to manage future EMIs while simultaneously helping them accumulate the required down payment.
How Does The RD-Backed Loan Scheme Work?
Under the “Suhana Safar” programme, customers first open a recurring deposit account with AU Small Finance Bank and deposit a fixed amount every month for a period ranging from three to six months.
The monthly contribution is typically set at around 80% of the estimated EMI on the proposed vehicle loan. For example, if a customer’s expected EMI is ₹10,000 per month, they would deposit approximately ₹8,000 every month into the recurring deposit account.
Once the deposit period ends, the accumulated amount along with the interest earned is used as the down payment for purchasing the vehicle.
The customer can then avail a regular auto loan from the same bank and begin paying EMIs in the usual manner.
Importantly, the RD amount is not used for loan repayment but serves solely as a savings mechanism to facilitate vehicle ownership.
Why Is This Model Beneficial For Customers And Banks?
Maruti Suzuki says the concept was inspired by savings-linked purchase programmes commonly used in the jewellery industry.
The scheme allows customers to assess whether future EMI commitments comfortably fit within their household budgets before taking on a long-term financial obligation.
It also encourages financial discipline and reduces the likelihood of repayment stress after loan disbursement.
For lenders, the arrangement provides valuable insight into a customer’s savings behaviour and repayment potential. By monitoring regular RD contributions over several months, banks gain additional confidence in assessing creditworthiness before approving the loan.
Banerjee described the model as a “win-win” proposition that benefits both customers and financiers.
To further incentivise buyers, Maruti Suzuki dealers will reimburse the final month’s RD instalment once the vehicle purchase is completed.
What Has Been The Initial Response?
The scheme appears to have received encouraging early traction.
Since its launch last month, Maruti Suzuki has recorded around 8,000 customer enquiries related to the programme. These enquiries have already translated into more than 1,700 vehicle bookings.
The company is closely monitoring customer response and may consider expanding the initiative through additional financing partners if demand continues to grow.
Why Is Maruti Focusing On Small-Car Buyers?
The initiative comes as Maruti Suzuki seeks to strengthen demand in the entry-level car segment, which remains a crucial category for first-time vehicle buyers in India.
The company sold 194,555 units of small cars, including Alto, S-Presso, Celerio, Baleno, Swift, Wagon R, Dzire, Ignis, and Ciaz, during the April-May period, registering a strong 42.03% year-on-year growth.
With affordability remaining a key factor for many Indian consumers, innovative financing solutions such as the RD-backed loan scheme could play an important role in driving future demand and expanding vehicle ownership across the country.
