Auto retailers' lobby writes to FM, RBI governor to request loan moratorium
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Synopsis
Retailers, or dealers, make an upfront payment to automakers while purchasing vehicles and this is usually funded through loans with a payment cycle of 30-90 days. Localised lockdowns across the country means that the inventory hasn’t been sold within the expected period, dealers argue, impacting their ability to make good on their payments to lenders.
Agencies
Dealers said that if the situation persisted beyond May, many would find themselves in trouble with a shortage of working capital as fixed costs like rent and salaries continue.