Banks have reported that till now they will were providing 90% of the car finance, but now they are planning to stretch it up to 95%. The direct sales agent of a private sector bank informed that on certain models of cars bank even offer 100% finance of the cars.

For the customers with the income more than Rs 1 lakh there is offer of 100% finance on Maruti Swift Desire, Wagon R, Maruti Alto, Ford Ecosport, Nissan Terrano and Renault Duster. It was further reported that car finance is different from the home loans and gold loans. Once the car is sold its value start depreciating. It is, therefore, important that banks have good appraisal processes.

Some private sector banks have reported growth in their retail loans, like ICICI bank reported a growth of 17%, Axis bank saw its advances grow by 17 percent per year.