Has tightened lending provisions radically for automobile dealerships, according to a source and an internal memo seen by Reuters, wanting to lower its exposure to danger from a business in the middle of a sharp recession.
The shadow banking crisis that started to unfold at India throughout mid-2018 has deepened this season. The liquidity crunch in non-bank funding, higher insurance prices and rises in earnings have served to increase the strain on the car industry, with yearly car sales falling by 17-20
Hyundai traders that had received loans from the lender will also need to give safety of between 25% and 50% of their amount of the loan, SBI stated in the memo dated March 27 and signed by the primary general director for supply chain funding.
Hyundai did not respond to an email seeking comment.