'GST rate cut boosted Oct vehicle loans'

CHOOLAMANDALAM Investment and Finance Company president and CFO Arul Selvan said that the NBFC’s advances in two-wheelers and passenger cars segments went up in October after the GST rationalisation in September.

- SANAL SUDEVAN @ Chennai

Without revealing exact numbers, Selvan said, “We have seen an uptick in vehicle loans after GST cuts for October. The larger impact of GST cuts on rise in vehicle loans will be known when Q3 results are out. The benefits of GST cuts on advances will be seen in the sale of two-wheeler, passenger cars or consumer durable products. It will not happen where people are investing in assets which are for productive purpose.” The recent reports said the major automobile companies saw a rise in sale of passenger cars and two-wheelers due to GST rationalisation ahead of festive season.