Mahindra Navistar Automotives Ltd. has entered into alliance with Bank Of India for financing commercial vehicles.

Under the aggreed terms, Bank of India will be a preferred financier for Mahindra Navistar Automotives' LCVs which operates under the brand Loadking (for trucks) and Tourister ( for buses).

The tie-up will cover over over 3,031 branches of Bank of India and nearly 140 Mahindra dealers on a country wide magnitude.

Commenting on the move, Akhilesh Kumar Gupta, Vice President, Sales and Marketing, Mahindra Navistar Automotives Ltd "Our partnership with Bank of India is a strategic one as it will help us consolidate our no.2 position in the market by providing our customers with an additional finance option at a lower rate of interest of 10.5% and a longer repayment period."

"Our customers can now avail of a loan of up to 85% of the on road price of the vehicle. Moreover, the bank's vast national network of 3031 branches will also help us make further inroads in upcountry markets, " he added.

Mahindra Navistar Automotives Ltd., a 51:49 commercial vehicle joint venture between Mahindra & Mahindra and US-based Navistar Inc is into manufacturing of entire range of commercial vehicles ranging from 3.5 - 49 tons GVW/GCW. The company is also into manufacturing of diesel engines for Medium and Heavy Commercial Vehicles in India.