AU Small Finance Bank and Maruti Suzuki Launch ‘Suhana Safar

Mumbai: AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and one of the first in over a decade to receive in-principle approval to transition into a Universal Bank, has announced a strategic partnership with Maruti Suzuki India Limited (MSIL). Together, they have launched an industry-first initiative named “Suhana Safar.” This unique Recurring Deposit (RD)-backed auto loan scheme is specifically designed to make car ownership more accessible for aspiring first-time buyers.

Bridging the Financial Gap for First-Time Buyers:
The “Suhana Safar” scheme directly addresses one of the most common barriers to first-time car ownership: the challenge of mobilizing a lump-sum down payment and committing to a monthly Equated Monthly Installment (EMI) without prior financial readiness.

This structured, RD-backed solution enables customers to build savings, earn interest, and practically assess their comfort with making regular payments before officially availing of the auto loan.

How ‘Suhana Safar’ Works:
The scheme offers a seamless, end-to-end journey from disciplined saving to confident car ownership within a single banking relationship. The process involves the following steps:

Opening the RD: A customer opens a Recurring Deposit account with AU SFB.

Monthly Deposits: The customer deposits a fixed monthly amount equivalent to their prospective car EMI for a period of three to six months.

Earning Interest: The RD earns interest during this three to six-month tenure.

Down Payment Conversion: Upon maturity, the accumulated savings are utilized as the down payment for the vehicle.

Loan Disbursement: Following the down payment, AU SFB sanctions and disburses the auto loan.

A Win-Win Proposition:
This initiative creates mutual benefits for both the aspiring car owner and the financial institution. While the customer systematically saves for their dream car, the bank is able to assess the customer’s creditworthiness at two crucial stages: initially at the time of RD enrollment and subsequently at the time of loan disbursement.

Eligible Models and Interest Rates:
The “Suhana Safar” scheme is available through authorized Maruti Suzuki dealerships across four of the brand’s most popular models:

• Alto K10
• S-Presso
• Celerio
• WagonR

To help fund this car ownership journey, AU SFB offers competitive Recurring Deposit savings rates. Currently, the bank’s RD interest rates range from 4.75% to 7.40% per annum for the general public, and 5.25% to 7.90% per annum for senior citizens.