State Bank of India (SBI) and Maruti Udyog have announced
a joint initiative aimed at making car finance affordable
to middle- and lower-middle-class customers.
will now have transparent car finance involving no hidden
charges and pre-closure penalties, and also get the dealers'
margins, says SBI chief general manager S K Bhattacharya.
"It will help both the bank and Maruti to aggressively
tap the Andhra Pradesh market."
offers finance facility even for lifetime tax, insurance
and accessories of the vehicle. Further, SBI Life Insurance
will offer life insurance cover to the customers at a
concessional premium. "Even this premium amount will
be financed by SBI and this works out to nearly 100-per
cent finance on ex-showroom price of the car," he
that the lowest EMI will enable most of the two-wheeler
owners realise their dreams of owing a car, Bhattacharya
says the EMI on car finance works out to only Rs 1,712
per lakh for a seven-year tenure and around Rs 1,500 for