The Times Of India, a state-run news portal, on Thursday said that in 2016, the country had loaned out over Rs 8,500 crore in loans to car loan holders, and that the amount has grown from Rs 5,000 crore in 2013 to Rs 12,800 crore in 2020.
The Times, which is run by the Bharatiya Janata Party (BJP), also said that the government has also made the payment of interest on the loans at 3 per cent per annum.
The newspaper quoted a finance ministry official as saying that the total amount owed is in excess of Rs 10,000.
However, the official did not provide details of the amount due.
The official did, however, emphasise that interest is paid at 3 percent per annuence, saying that there is no cap on interest rates.
The ministry said that there was no formal limit on interest, and the payment was done according to the law.
The minister also noted that the car loan has no contractual or contractual right, adding that the interest rate is fixed at 3% per annuity, which the government is not obliged to honour.
The government’s position has been questioned on several occasions, as the government does not keep records on car loans and does not track how many car loans it has issued.
Earlier this month, finance minister Arun Jaitley said that he had no idea how many cars were being issued and if it was a regular scheme.
The Finance Ministry has not been clear about the total number of cars issued and the interest rates paid on the cars.
According to a report in The Hindu newspaper, the car loans are paid out by the government on a rolling basis, and are repaid with interest each year.
The Indian car industry has been struggling with a cash crunch.
According a report by The Economic Times in March, the average price of a car sold in India last year was around Rs 2,000,000 per car.