TVS-Bank of India tie up for cheaper auto loan

Chennai-based two-wheeler major TVS Motor Company has tied up with Bank of India (BoI) to provide cheaper finance for aspiring customers in the ongoing festive season. Under the tie-up, BoI will provide one per cent rebate on auto loan for five years to TVS customers across all models till October 20.

“The effective interest rate would be 8.5 per cent for our customers after rebate on reducing balance basis. The bank would be willing to finance 90 per cent of the on-road price of our models,” TVS Motor regional manager Ajay Gupta said addressing the media here.

The scheme also has low processing fee of Rs 500 for loan amount below Rs 30,000 and Rs 700 for loan amount above Rs 30,000. “This scheme is a value addition and provides our customers with excellent retail finance option this festival season. The total savings to a customer due to the low interest rate can be as high as Rs 12,000,” he added.