India's largest automobile company, Tata Motors has entered into an alliance with Canara Bank to provide a single window to consumers for availing auto loans for Fiat cars distributed by Tata Motors.

Under the agreed terms, the bank will avail auto loans up to 90 percent of the "on-road cost" of the vehicle at an interest rate of 11 percent p.a., for a period of up to seven years. The facility will be available on range on Fiat cars, which include Linea, Palio and the recently launched hatchback- Grande Punto.

This loan facility will be available at all 100 sales touch points of the Tata-Fiat distribution Network and at 2,735 branches of Canara Bank.

Commenting on the move, Subodh Marathe, Country Head, Tata Motors, Fiat Product Group, said, "Tata Motors has always been at the fore-front of introducing multiple customer centric initiatives. We felt that the strong product range from Fiat could be leveraged further with easy financing options for interested customers. Our alliance with Canara bank will certainly provide our customers a doorway to the best financing option."

Fiat India Automotive is the joint venture between Italian car major Fiat SpA, and Tata Motors. The company launched 'Grande Punto', a premium segment hatchback on June 17. The car is available in three variants Active, Dynamic and Emotion.

Earlier the company had entered into an alliance with Bank of India for financing Fiat cars.

Headquartered in Bangalore, Canara Bank is one of the largest PSB in the country, with 2,735 branches and 2,004 ATMs spread all over the country.