Kochi: Federal Bank on Wednesday launched a National Auto Loans Hub.
The Hub has been set up as a single window for processing and sanctioning of auto loans on fast track.
With the launch of the National Auto Loan Hub, the bank has addressed two key points that affect consumers -- pricing and speedy processing.
The bank has slashed the interest rates on car loans to 10.45 percent, one of the lowest rates offered by any Bank in the industry. The Auto Loan Hub is committed to speedy processing and will enable the Bank to reduce turn-around-time [TAT] to less than a day, a bank release said.
The steps taken by the lender would make it the most aggressive player in the car loan market and provide customers best deals in the space.
The central hub has started operations and is currently handling all applications from Kerala. The bank proposes to spread its operations countrywide.
Federal Bank disburses car loans through all its 1029 branches across the country.Apart from this, bank's subsidiary Fedfina, is also receiving applications directly from customers in all centres other than Kerala.
The bank's own sales channel will supplement the efforts of the centralised hub to extend personalised service to clients for acquiring vehicles.
Federal Bank is entering into tie-ups with leading auto manufacturers and dealers across the country to offer best of services to prospective auto-clients. The launch of an online facility to give spot sanctions for car loans is also in the pipe-line.