sundaram finance saw a 20 gap in loan disbursements in the septemberended quarter 2020chennai nbfcs are losing market share to banks in car and suv financing and are shifting their focus to used cars twowheelers and commercial vehicles instead a combination of capital constraints among nbfcs and renewed aggression from public sector banks psbs has led to this situation said auto financiers in a bid to grow their retail portfolio psu banks are offering auto loans at 725 to 77 compared to nbfcs whose rates range from 875 to 11while state bank of india sbi is offering auto loans starting from 77 others are even cheaper with central bank of india offering loans at 725 followed by canara bank advt 73 united bank of india74 and indian overseas bank 755 in recent times nbfcs have lost market share to psu banks which have become more aggressive and that includes tata motor finance said tata motors group cfo p b balaji unlike banks nbfcs rely on wholesale funds banks are now going slow in lending to finance companies with rbi encouraging banks to take the colending model to take advantage of nbfcs networkaccording to m ramaswamy chief financial officer at sundaram finance banks are flush with liquidity and can bring down rates we are facing pressure in some markets depending on how aggressive they turn it is a mixed bag for us we mostly cater to individuals with higher risk profiles and because of our good ratings our cost of funds has also come down so in certain regions we have lost market share and in others we have gained he saidsundaram finance saw a 20 gap in loan disbursements in the septemberended quarter 2020 cholamandalam investment finance company cifc saw total disbursements decline by 30 yearonyear in its vehicle finance segment for the quarterended september 2020 according to research reports of brokerage firm motilal oswal this excludes the tractor and construction equipment ce segmentsshriram transport finance disbursed 650 crore of loans which was half of last year also 97 of disbursements were in the used vehicle segment our focus is on individual and small truck owners who prefer to buy used vehicles normally banks do not lend to used vehicles because it is timeconsuming requires vehicle valuation and ownership transfer paperwork said umesh revankar md ceo shriram transport finance advt by nandini sen gupta mamtha asokan tnn published on nov 17 2020 at 0746 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite