Droom.com ties up with Axis Bank for used-car loans
13 Jan 2017
Recently, we reported the MagicBricks.com tie-up with SBI, the country’s largest bank for soft loans for home buyers, and now Droom.com, a leading new- and used-auto site in India, has partnered with Axis Bank to offer easy credit for both new and used autos.
In October last year, Droom.com launched a new-autos vertical (our report here).
That MagicBricks and Droom tied up with credit institutions within a short space of time, is no coincidence: The tie-ups were driven by the government’s decision to “demonetize”, meaning to remove big-denomination notes (Rs 500 and Rs 1,000) from circulation.
In India, autos and real estate were apparently often bought for cash stashed under mattresses. Since, both India’s property and auto sectors have since suffered under the so-called “demonitization drive”, aimed at removing “black money” from the economy.
For example, property registrations dropped by 50 percent from November to December. Vehicle sales, especially of luxury cars, took similar hammerings, as we reported here.
What has been bad for cash transactions, is proving a boon for credit transactions. To counter the downward spiral, Droom.com, tied-up with credit-extender Axis Bank, the country’s third largest private bank. It offers loans of up to 85 percent of the value of autos and a maximum payback period of five years.
Five years ago, it was difficult to have an old vehicle financed in India. Under the Axis Bank/Droom.com tie-up, loans are extended for vehicles that will be a maximum of ten years old at the end of the payback period, meaning autos up to five years old are financed, according to a report in Economic Times.
Just last month, Droom.in also moved into consumer-to-consumer sales of used cars, thereby stepping up the competition with CarDekho, CarTrade, OLX.in and QuikrCars (our report here.)