Tata Motors have now signed a pact with public sector Union Bank of India (UBI) for financing its range of passenger vehicles.

Car loans up to 85% of the invoice will be extended by the bank to the buyers of Tata Motors. UBI will offer the loan at very competitive rate of 11% to 11.25% for a tenure ranging up to 5 years.

The service will be available at all the branches of Union Bank of India along with 329 sales touch-points of Tata Motors.

The tie-up between the two entities is going to facilitate a single window for both cars and car loans to the prospective buyers of Tata Motors.

The bank has also had an agreement with other PSU banks like Punjab National Bank, Corporation Bank, Central Bank, Bank of India, and State Bank of Patiala.

Tata Motors' have been aggressively pushing towards PSU banks in the last few weeks. This is a clear strategy to strengthen its rural presence as PSU banks have significant market approach in these areas.