Bank of Rajasthan, a leading Indian private sector bank with 463 branches across the nation, has signed up a memorandum of understanding (MoU) with Hyundai motor India ltd. ( HMIL), the Indian arm of Hyundai motor company, South Korea for car loans. The tie-up between the two companies is expected to be mutually beneficial.

Mr. K. K. Sharma, Executive Director, The Bank of Rajasthan Ltd., said "This MOU with the Hyundai Motor India Ltd. will facilitate additional retail finance options for passenger vehicles. Given the vast network of Bank's branches and HMIL dealerships, the MOU is of benefit to both, allowing the Bank to further strengthen its presence in retail assets segment and HMIL to tap rural and semi urban markets. The retail customer will be benefited by availability of financing facility at lower rates through Bank's branches".

The association between the two will make car loans available at a lower and attractive rate of 10.50% p.a for salaried professionals and 11 % for others. The loan limit will be 90% of the ex-showroom price and for a maximum tenure of 5 years.