Tata Motors is giving final touches to the launch of Nano car. The company is having final talks with the State Bank of India (SBI) India’s largest bank, regarding finance scheme for the Nano car. Company has tied-up with SBI for the finance scheme for Nano, under which the bank will be financing 70 per cent of the price of the car at an interest rate of 14 to 14.75 per cent for a tenure of up to 5 years.
Last week meetings were held between General Managers of SBI branches across the country with the senior Tata Motors executives to decide the branches through which the finance will be offered and the method of rolling out the loan scheme across the country, especially in rural locations and small towns.
The strict terms have been made for the Nano finance scheme in comparison to those offered by both government-owned and private sector banks for comparable tenures. Currently government-owned banks are charging between 11.5 and 12 per cent, while SBI before 31 May is charging a concessional 10 per cent for car loans for the first year as part of a special scheme.
Private Banks like HDFC Bank are charging interest of 12 to 12.5 per cent and ICICI Bank 14.5 per cent. Most banks offer finance up to 85 per cent of the price of the car.
As per information provided by sources, the company has already received over 40 million queries on the Nano on its websites. According to dealers the cost of the opening level model will be Rs 1 lakh (excluding freight and value-added tax ) and consumers will have to pay Rs 25,000 to Rs 30,000 more for the air-conditioned model, though the dealers have still not been given the final pricing.
Regarding finance scheme a Tata Motors spokesperson told, “The booking process and other details will be announced on March 23, 2009. In any case, we have said on February 26, 2009, that Tata Motors is making arrangements for the widest possible network to book the car, so that prospective customers can conveniently avail of booking facilities at their locations, across the length and breadth of India. Your information on interest rates etc is purely speculative.” However no reply to an email query was given by the SBI spokesperson.
The sources closely related to the process say that the company will be roll out limited number of cars from assembly lines in Pune (Maharashtra) and Pant Nagar (Uttarakhand), until a makeshift arrangement the main plant in Gujarat starts operations in October. While, the company’ aims to roll out around 100,000 cars in the first 12 months.
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