Tata Motors, Central Bank ink MoU for car loans

Mumbai-based Tata Motors, India's third largest car manufacturer today said that the company has entered into an understanding with state-owned Central Bank of India (CBI) to provide retail finance to the formers' range of passenger vehicles.

CBI will offer loans up to 85 per cent on the road price of the car for tenure ranging up to 7 years. Interest rate will be kept at 10.5 per cent for a 3 years tenure and 11.5 per cent  for tenures greater than 3 years.

This facility will be available at all 3,500 branches of CBI and 329 sales touch points of Tata Motors, stated a press statement.

This tie-up is aimed at providing a single window for both cars as well as car loans.

Share price of Tata Motors on the Bombay Stock Exchange (BSE) was trading marginally higher at Rs 132.15 per share, up 0.49 per cent as compared to the company's yesterday's close of Rs 131.50 per share.

Meanwhile, share price of CBI was trading down 2.38 per cent at Rs 34.90 per share as against its previous night's close of Rs 35.75 per share on the BSE.