Carmakers Need Easy Repossession Norms
Posted on March 31st 2009Welcome back!
Auto Industry in India has demanded Mr. Manmohan Singh (PM India) to do a process of repossession of vehicles from the loan defaulters simple and clear-cut, to support the retail finance in auto sector.
Mr. Venu Srinivasan (CII President) said that the structural adaptation required to be carried about to permit lending organizations to take back vehicles in case of failure to pay of loan installments; only then would bank come ahead and relieve lending. Presently, non-banking finance institutions aren’t included under RBI’s (Reserve Bank of India) repossession law.
Since 2008-2009, many banks have been reducing on their vehicles financing due problems in making a recovery from loan defaulters. This has greatly affected the automobile industry, which witnessed some rise in order only in Jan’09 and Feb’09 after declaration of 2- stimulus packages by government. But, industry rep said that there are many things that yet have to be perform to normalize the situation.
By editor in Auto Finance, Auto India News
Trove Motors responded on 28 May 2009 at 10:18 am #
Dear Sir/Madam,
We are Mumbai based Automobiles Trader.
We are looking forward for the auction or tenders of resell vehicles {damage / Accidental / Loan default} conducted or issued by General Insurance companies or Banks or any Financial Institute.
kindly guide us for the right search.
We would be grateful for any reply that you could give us.
Aseef Shah responded on 19 Jun 2009 at 4:15 am #
Dear Sirs,
As an employee of an NBFC,I support reposession because this is the only way by which we can make the hirer feel that they have some liabilities and
Aseef Shah responded on 19 Jun 2009 at 4:16 am #
Dear Sirs,
Reposession is very much necessary