Tata Motors ties up vehicle financing with Central Bank

18 February 2009

Public sector lender Central Bank of India, which yesterday froze its home loan rates at 8 per cent, today entered into an arrangement with auto major Tata Motors for providing retail finance facilities to buyers of its passenger vehicles.

"In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Central Bank of India for financing its range of passenger vehicles," Tata Motors said in a statement.

Under the arrangement, Central Bank would offer financing facilities for passenger vehicles of Tata Motors through its 3,500-odd branches as well as 329 sales outlets of the auto maker.

"This tie-up will provide a single window for both cars as well as car loans and will make car buying easier for customers," Tata Motors said.

Central Bank offers up to 85 per cent car financing on the on-road price of the vehicle, for a tenure ranging up to seven years, at a rate of 10.5 per cent for 36 months and at 11.5 per cent for a period over 36 months, the statement added.

Tata Motors has tied up car financing with another public sector lender, Corporation Bank, as well.