Public lender, Bank of India (BoI) has announced a scheme that is especially designed for the Nano aspirants. It will benefit Nano loan seekers who will be granted a three month moratorium period on both interest and principal repayment.

The scheme is however applicable only for the existing customers of the bank and would also include no interest upfront from the borrower.

In a press release issued by BoI, it was stated: "The loan is highly beneficial to people who will get the allotment and delivery of vehicle as it shall be charging a floating rate of interest of 10.25 percent with repayment period less than 36 months."

Further the borrowers will be charged an interest rate of 10.75% for the tenure between 3 and 6 years.

"On booking loan, it shall charge 12 percent fixed rate of interest only till delivery of the vehicle. Booking loan may be for a short period of 90 days only and delivery period as declared by Tata Motors," said the press release.

The loan is only going to be extended for a period of 6 years at a rate that will range between 10.25% and 10.75% per annum.

A representative from BoI says, the charges on the booking amount of the bank may not be very competitive but the charges on loan, once the customer gets delivery are competitive.

Recently BoI has also entered into an agreement with Tata Motors for financing a range of passenger cars of the automaker.