BS reported that TATA Motors is putting the final touches to a finance scheme for the Nano car through a tie up with the State Bank of India, India’s largest bank, under which the bank will finance 70% of the price of the car at an interest rate of 14% to 14.75% for tenure of up to 5 years.

GM of SBI branches across the country had a meeting with senior TATA Motors executives last week to finalize the branches and the method of rolling out the loan scheme across the country, especially in rural locations and small towns.

The terms for the Nano finance scheme are stiffer than those offered by both government-owned and private sector banks for comparable tenures. Government owned banks currently charge between 11.5% and 12%, although SBI is charging a concessional 10% for car loans before May 31st for the first year as part of a special scheme.

According to dealers who have still not been given the final pricing, it has already received over 40 million queries on the Nano on its websites. The entry level model will cost INR 1 million and consumers are expected to pay INR 25,000 to INR 30,000 more for the air conditioned model.

(Sourced from Business Standard)