State Bank of India has signed a Memorandum of Understanding with Honda Siel Cars India Ltd., to provide auto retail financing to prospective customers. State Bank of India will be the preferred financier for the entire range of vehicles marketed by Honda Siel Cars India Ltd., in India.
The agreement was signed by Mr. Tatsuya Natsume, Director (Marketing), of Honda Siel Cars India Ltd., and Mr. P. Nanda Kumaran, Chief General Manager, State Bank of India Personal Banking Business Unit in Mumbai. Among those present on the occasion included officials of both SBI and Honda Siel Cars India Ltd.
The MOU aims at targeting high end customers who will be availing car loan from SBI above Rs. 5 lacs onwards. SBI has come out with a special scheme called SBI Advantage Car Loan Scheme for this niche segment. This scheme is applicable to individuals – Salaried, Professionals, Self employed, Businessmen and Proprietary /Partnership firms, who are income tax assesses and whose income/net profit or gross taxable income is Rs.2.50 lac and above. This scheme will be implemented in all RACPCs, all PBBs, all District Head Quarter Branches, Project area branches and Branches specially authorised by AGM (Region). Maximum loan amount will be 48 times of NMI or 4 times of NAI.
SBI gives 85% of on-road price of the car as loan with a repayment period of 7 years as maximum applicable to all categories of customers. Processing fee is only 0.50% of the loan amount.
SBI has strengthened front end delivery channels. The USP of the product is that the sanctioning of loans will be on priority basis. All applications will be processed through speedy channels and the documents can be executed at Special Execution Desk at mutually convenient time and places.