With insufficient cash flows and fixed overheads, dealers have expressed their inability to clear their dues immediately. According to three auto dealers, some banks have already started asking for more collateral for granting further extension or restructuring of dues. For some dealers, the banks have even debited their entire pending interest amount in the first week of September. “Banks should restructure loans under less stringent conditions and let dealers pay on a monthly basis. “Most dealers managed to clear their inventory by July as retail sales picked up gradually post lockdown.

Source: Mint September 15, 2020 01:07 UTC