Bajaj Tempo ties up with Andhra Bank

Bank to provide easy finance on entire range of vehicles

Bajaj Tempo Limited today entered into an alliance with Andhra Bank wherein the bank will finance the entire range that the company manufactures through its branches.

Bajaj Tempo Limited has a wide range of products in the four-wheeler (light commercial vehicle and multi-utility vehicle), three-wheeler and tractor segment.

Addressing a press conference, Manoj Kumar, general manager (sales and marketing), Bajaj Tempo Limited, said, "The agreement will provide easy finance on all the products made by the company, which will be financed through the branches of the bank."

The scheme will offer attractive down payment, easy interest rates and discounts. According to Kumar, a customer can get a discount of Rs 5,000 on the purchase of a tractor, Rs 1,500 on three-wheelers and Rs 3,000 on four-wheelers under the scheme.

Speaking on the occasion, T S Narayanasami, chairman and managing director of Andhra Bank, said, "This is the third alliance that the bank has entered into with tractor manufacturing companies, and looking at our past record we are confident of doing well."

The bank for the first half of the current financial year has sanctioned 850 tractor and 10,000 two-wheelers loans. Narayanasami said that the outstanding loans under tractor financing is to the tune of Rs 84.52 crore covering 6,918 loans and the outstanding towards the two-wheeler segment is Rs 5.20 crore covering 12,100 loans.

The bank has also announced that tractor loans up to Rs 3.5 lakh will be sanctioned without any collateral security at 9.5 per cent interest.

Narayanasami said that, farmers owning three acres of wetland or six acres of dryland can avail a tractor loan and 85 per cent of the invoice price would be given as the loan.

At present, the bank's advances towards the agriculture sector are Rs 2,750 crore, which constitutes 18.78 per cent of the net bank credit. Till the end of November this year, the bank's disbursement to the sector was Rs 1,725 crore, an increase of 74.25 per cent over the corresponding period last year.

"The total agricultural borrower accounts of the bank has crossed one million and we have till now issued more than four lakh kisan credit cards," Narayanasami said.