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Car retailer lobby writes to FM, RBI Governor to request moratorium on loans

Car retailer to Minister of Finance And that Reserve Bank of India The local blockade has forced the governor to temporarily close three-quarters of showrooms nationwide, seeking a three-month extension of the loan moratorium and the Goods and Services Tax (GST).

The retailer or dealer makes a prepayment to the car manufacturer when purchasing a car. It is typically funded through a loan with a payment cycle of 30-90 days. Localized blockades across the country mean that inventories were not sold within the expected period, and dealers claim that they are affecting their ability to successfully pay lenders.

 “The dealer was unable to do business during the blockade, so this period should be considered invalid when considering repayment to the bank,” said the Federation of Auto Dealers Associations.(FADA) Said in a letter to the Governor of the Central Bank. ET saw a copy of this letter.

Similarly, the Lobby Group requested a three-month extension of GST filing.

According to vehicle registration data, car retail sales in April were down 28% compared to March. FADA President Vinkesh Gulati told ET in a previous exchange that retail prices in May are expected to fall to one-fifth of what it was when the business environment was normal in May 2019.S-ET

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