State Bank of India (SBI) would be charging around 11.75-12 per cent for financing the world’s cheapest car, the Tata Nano. The loans would be available for a maximum period of seven years.
Bookings for the Nano would be exclusively managed by SBI and minimum downpayment for the car would be Rs 2,999. Bookings for the Nano begin from 9 April and would remain open till 25 April.
The largest lender in the country has entered into an arrangement with the largest automobile company of the country, Tata Motors, through which, more than 1,350 SBI branches located in 850 cities would assist in the booking process.
Consequently, SBI would be responsible for the sale of Nano booking forms, Nano booking loans, acceptance of booking amount at designated branches, Nano car loans and refund to unsuccessful applicants.
In addition to SBI branches, forms would also be available from Tata Motors passenger car dealerships nationwide, as well as Croma and Westside stores. The application forms are priced at Rs 300 each.
“SBI will be using its SBI FAST, the Cash Management Product, which is suitably poised to handle bulk centralised collection and payment services. SBI has also set up a 24x7 helpline to facilitate the booking process,” a release from the bank said.