New Delhi, July 2: AU Small Finance Bank , India’s largest Small Finance Bank and among the first in over a decade to receive in-principle approval for transition into a Universal Bank, has entered into a strategic partnership with Maruti Suzuki India Limited to launch an industry-first initiative, “Suhana Safar” – a Recurring Deposit -backed auto loan scheme designed to make car ownership more accessible for aspiring first-time buyers of the most popular models; Alto K10, S-Presso, Celerio, and WagonR.
Suhana Safar addresses one of the most common barriers to first-time car ownership – the challenge of mobilising a down payment and committing to an EMI, without prior financial readiness.
Under the scheme, a customer opens a Recurring Deposit account with AU SFB and deposits a fixed monthly amount – equivalent to the prospective car EMI, for a period of three to six months. The RD earns interest during this tenure, and on maturity, the accumulated amount is utilised as the down payment, following which the Bank sanctions and disburses the auto loan.
As a structured RD-backed solution, the scheme enables customers to build savings, earn interest, and assess their repayment comfort before availing the loan, thereby creating a seamless, end-to-end journey from disciplined saving to confident ownership within a single banking relationship.
The scheme creates a win–win proposition for both the customer and the Bank, as it enables the Bank to assess the customer’s creditworthiness at two stages – initially at enrolment and subsequently at the time of loan disbursement.
Currently, AU SFB offers RD interest rates ranging from 4.75% to 7.40% per annum for the general public, and 5.25% to 7.90% per annum for senior citizens