In order to keep the lower middle-class attracted towards the Tata Nano loan schemes, banks are maintaining an easy minimum eligibility criteria.

Banks that have already tied up with Tata Motors for financing the car are following this practice. For instance the industry leader, State Bank of India (SBI) has reduced the income eligibility criteria for Nano aspirants from Rs 1 lakh to Rs 75,000 per annum.

Likewise United Bank of India (UBI) has also said that it will offer Nano loans to individuals with a minimum monthly income of Rs 5000 or Rs 60,000 per annum. "We have kept the minimum eligibility easy as we would like to project us as a people's bank. This will fit with the Tata Motors' people's car," said the bank's CMD, SC Gupta.

However it is a different matter that until now UBI has received booking request from individuals with gross monthly salaries in the range of Rs 25,000-30,000.

On the other hand, Canara Bank and Indian Bank are maintaining tighter norms and offering the loans to individuals with minimum annual income of Rs 1.50 lakh and Rs 1.80 lakh respectively.

Although the eligibility criteria has been eased by the banks but it does not ensure that the customer would be able to avail a Nano loan by merely fulfilling the eligibility norms laid down by the respective bank. The customers are required to have a net take home salary of 60% of gross salary after paying off their EMI (equated monthly installment) and payments towards provident funds.

In fact ICICI bank has displayed this information in its website. "Financing of the booking amount by ICICI Bank does not guarantee sanction of subsequent car loan upon allotment of Nano car," stated the bank.

A senior official of UBI also agreed on this point and said, "We are not offering any guarantees either. We will be comfortable to offer loans for Nano to our own customers or customers having salary accounts with us."

Applicants who will get the allotment based on a computer generated lottery system will be required to complete the formalities of settling the booking amount financed within 90 days of the last date of booking period.