The Hindu Business Line : Tata Motors in pact with Andhra Bank for car loans

(From right) Mr T.S. Narayanasami, Chairman and Managing Director of Andhra Bank; Mr R. Balakrishnan, Executive Director; and Mr S. Krishnan, Head-Car Product Group, Tata Motors; at a MoU signing function in Hyderabad on Wednesday. - - A. Roy Chowdhury

Hyderabad , Nov. 3

TATA Motors has nominated Andhra Bank as the `preferred financier' for financing purchases of its passenger cars, as per a memorandum of understanding it signed with the bank here on Wednesday.

The Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, and the Executive Director, Mr R. Balakrishnan, said under the tie-up purchasers of Tata Motors' passenger car range would be offered loans at 9.25 per cent interest rate for period of up to 36 months, and 9.5 per cent for above 36 months.

According to the Andhra Bank top brass, the interest rates were reduced by 0.5 per cent for both tenures and would be applicable on a daily reducing balance. The bank has financed 9,000 two-wheelers and 1,000 four-wheelers during the first half of current fiscal and its vehicle loan portfolio stood at around Rs 60 crore.

The Tata Motors Head, Car Product Group, Mr S. Krishnan, said the Indica was being exported also, while Indigo was the largest selling car in its segment. There have been huge bookings for its latest offering - Marina. "

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