State Bank of India (SBI), country's largest lender, has entered an agreement with Honda Siel Cars India Ltd to provide auto retail financing to prospective customers.

According to a press release, the bank will finance the entire range of vehicles marketed by Honda Siel Cars in India.

The agreement was signed by SBI's chief general manager, personal banking business unit, P Nanda Kumaran and Honda Siel Cars' director (marketing) Tatsuya Natsume.

The memorandum aims at targeting high-end customers who will avail car loans above Rs. 5 lakh from the lender. The bank has introduced a new scheme known as ‘SBI Advantage Car Loan Scheme' for this niche segment.

The release said that the scheme would be applicable to individuals-salaried, professionals, self-employed, businessmen and proprietary/partnership firms-who are income tax assesses and whose income/net profit or gross taxable income is Rs2.50 lakh and above.

SBI gives 85% of on-road price of the car as loan with tenure of 7 years as maximum applicable to all categories of customers. Processing fee is only 0.50% of the loan amount.

Recently SBI card launched an option to pay dues. This would enable the customers to choose from 13 different options to pay their credit card dues.