GST cut triggers car loan cancellations

As the cancellation charges are very low compared to the benefit that the customers will get after Sept 22, borrowers are opting for afresh loan process once the rate cuts kick in

- PRESS TRUST OF INDIA

Banks are receiving requests for cancellation of approved car loans, in view of the implementation of GST rate cut, which will lower the price of passenger vehicles and also lead to subsequent reduction in the amount needed to purchase them.

It is to be noted that the 56th GST Council meeting earlier this month, approved substantial reduction in the GST rate for cars for up to 1,200 cc to 18 per cent from the existing 28 per cent.

Nearly 400 products - from soaps to cars, shampoos to tractors and air conditioners - will cost less when the rejig of the GST is effective from the first day of Navaratri September 22.