NE BUSINESS BUREAU
CHENNAI, JULY 3
In a pioneering move that blends smart savings with affordable mobility, AU Small Finance Bank (AU SFB) has joined hands with Maruti Suzuki India Limited (MSIL) to introduce ‘Suhana Safar’, an industry-first Recurring Deposit (RD)-backed auto loan scheme aimed at helping aspiring customers confidently drive home their first car.
The innovative initiative is designed to simplify one of the biggest hurdles faced by first-time buyers—arranging the down payment while preparing for monthly loan repayments. Initially available through authorised Maruti Suzuki dealerships for the Alto K10, S-Presso, Celerio and WagonR, the programme creates a structured pathway from disciplined saving to vehicle ownership.
- Industry-first ‘Suhana Safar’ combines disciplined savings with seamless auto financing, making first-time car ownership more achievable than ever
- Strategic partnership empowers aspiring buyers of Alto K10, S-Presso, Celerio and WagonR to build their down payment through a Recurring Deposit before taking a loan
- Innovative RD-backed model rewards customers with interest earnings while strengthening financial preparedness and responsible borrowing
- Collaboration reflects a shared commitment to expanding affordable mobility and financial inclusion across India’s fast-growing middle class
Under the ‘Suhana Safar’ scheme, customers begin by opening a Recurring Deposit account with AU Small Finance Bank and depositing a fixed monthly amount equivalent to the expected Equated Monthly Instalment (EMI) for a period of three to six months.
During this period, the savings earn attractive interest while simultaneously helping customers develop financial discipline. Upon maturity, the accumulated corpus is utilised as the vehicle’s down payment, following which AU SFB sanctions and disburses the auto loan, enabling customers to transition seamlessly from saver to car owner.
The structured RD-backed approach allows customers to build savings, earn interest and evaluate their repayment capacity before taking on a loan, making the ownership journey significantly more secure and financially sustainable.
The model also offers advantages for the bank by enabling it to assess a customer’s repayment behaviour at two critical stages—during enrolment and again before loan disbursement—thereby promoting responsible lending and improved credit quality.
Currently, AU Small Finance Bank offers Recurring Deposit interest rates ranging from 4.75% to 7.40% per annum for the general public, while senior citizens can earn between 5.25% and 7.90% per annum, allowing customers to grow their savings even before purchasing their vehicle.
By integrating savings with financing, AU Small Finance Bank and Maruti Suzuki have introduced a customer-centric solution that encourages financial preparedness while making India’s most popular entry-level cars more accessible. The partnership is expected to further strengthen financial inclusion and support the aspirations of thousands of first-time car buyers seeking a simple, transparent and rewarding path to vehicle ownership.
