The waiting for Goddot is no more. The financial institutions, once vied with each other in distributing the loan for Nano, has reversed its job now- to cancel the loans. The reason cited- long wait! Not willing to pay interest for the unavailed loan, the customers are in the beeline cancelling their loan proposal. This resulted cancellation of almost one tenth of Nano bookings.
The mood in the Tata Dealers too grimed with 10-15% cancellation in recent months. The customers who got the tentative delivery dates of 2010-end and early 2011 are the most irritated. Tata sees no surprise in this regard, as it happens often, as in the case of initial booking for Indica in 1999. They say the cancellation comes from those who are at the tail end of the booking queue.
Another reason cited is malfunction of the car, after a recent incident of fire in three Nanos. The loan scheme for Nano is unique that the interest is levied before the physical delivery of the car, including the booking amount. The finance is released for booking of Nano on 10.50% till cancellation or repayment of the buyer, or till it become the routine car loan. Unless the car goes for hypothecation, the bridge loan will be in effect, which will be the safe mode for the bankers and financial institutions.
For bridge loan, the customer need not pay any interest or repayment till the delivery of the car. The loan may be converted to routine car loan or at the instance of the borrower, it may be taken over by the bank. Industry analysts view this cancellation, arising out of long wait, as a threat to the sales of Nano.
They observe that the customer frame of mind is unstable when the delay is thrust on them and quite naturally would shift to some other car by paying some more amount. Customers opt the top-end Nano(Rs180447) for the price variation with Maruti Suzuki’s cheapest car M 800-Rs1,92,693
The waiting for Goddot is no more. The financial institutions, once vied with each other in distributing the loan for Nano, has reversed its job now- to cancel the loans. The reason cited- long wait! Not willing to pay interest for the unavailed loan, the customers are in the beeline cancelling their loan proposal. This resulted cancellation of almost one tenth of Nano bookings.
The mood in the Tata Dealers too grimed with 10-15% cancellation in recent months. The customers who got the tentative delivery dates of 2010-end and early 2011 are the most irritated. Tata sees no surprise in this regard, as it happens often, as in the case of initial booking for Indica in 1999. They say the cancellation comes from those who are at the tail end of the booking queue.
Another reason cited is malfunction of the car, after a recent incident of fire in three Nanos. The loan scheme for Nano is unique that the interest is levied before the physical delivery of the car, including the booking amount. The finance is released for booking of Nano on 10.50% till cancellation or repayment of the buyer, or till it become the routine car loan. Unless the car goes for hypothecation, the bridge loan will be in effect, which will be the safe mode for the bankers and financial institutions.
For bridge loan, the customer need not pay any interest or repayment till the delivery of the car. The loan may be converted to routine car loan or at the instance of the borrower, it may be taken over by the bank. Industry analysts view this cancellation, arising out of long wait, as a threat to the sales of Nano.
They observe that the customer frame of mind is unstable when the delay is thrust on them and quite naturally would shift to some other car by paying some more amount. Customers opt the top-end Nano(Rs180447) for the price variation with Maruti Suzuki’s cheapest car M 800-Rs1,92,693