Mumbai: AU Small Finance Bank has partnered with Maruti Suzuki India Limited to launch “Suhana Safar”, a recurring deposit-backed auto loan scheme aimed at helping first-time car buyers prepare financially before driving home select Maruti Suzuki models.
The scheme will be available through authorised Maruti Suzuki dealerships for four entry-level models: Alto K10, S-Presso, Celerio and WagonR. It is designed to address a familiar hurdle for many aspiring car owners — arranging the down payment and assessing whether they are ready for a monthly EMI commitment.
Under the programme, a customer opens a Recurring Deposit account with AU Small Finance Bank and deposits a fixed monthly amount equivalent to the likely car EMI for a period of three to six months. The deposit earns interest during this period. Once the RD matures, the accumulated amount is used as the down payment, after which the bank sanctions and disburses the auto loan.
In simpler terms, the customer gets a financial rehearsal before the main performance begins — a sensible idea in a market where the excitement of buying a first car often arrives before the spreadsheet does.
AU Small Finance Bank said the structure allows customers to build savings, earn interest and test their repayment comfort before taking the loan. The bank also gets an opportunity to assess the customer’s creditworthiness at two stages: first at enrolment and later at the time of loan disbursement.
The lender currently offers recurring deposit interest rates ranging from 4.75% to 7.40% per annum for the general public, and from 5.25% to 7.90% per annum for senior citizens.
AU Small Finance Bank, India’s largest small finance bank, is also among the first in over a decade to receive in-principle approval for transition into a universal bank. Its tie-up with Maruti Suzuki places the scheme within India’s vast entry-level car market, where affordability and financing flexibility remain key factors in purchase decisions.
For Maruti Suzuki, the initiative adds another financing route for buyers of its popular small cars. For customers, it attempts to turn the first-car purchase from a sudden financial leap into a more measured journey — still emotional, but with a little more arithmetic in the driver’s seat.
The launch of “Suhana Safar” reflects a broader shift in vehicle financing, where banks and automakers are increasingly looking beyond standard loan products to offer structured, savings-linked options for first-time buyers. As car ownership aspirations continue to grow across India, such models could play a larger role in bringing financially prepared customers into showrooms.
