Auto giant, Tata Motors has entered into an alliance with public lender, State Bank of Hyderabad, one of the associate banks of State Bank of India for financing its Fiat cars.
Under the agreed terms, the public sector lender will avail car loans amounting of up to 85 per cent of the "on-road price" of the vehicle, at an interest rate of 10.25-10.75 percent annually on Fiat brands (Linea, Palio Stile and Grande Punto) for a period of up to 7 years.
"This tie-up will provide consumers a single window for availing loans for the whole range of Fiat cars distributed by Tata Motors," the carmaker said in a statement.
The financing facility will be available to all eligible customers at State Bank of Hyderabad branches, excluding the service branches and at hundred sales touch points of Tata-Fiat sales-distribution network.
Commenting on the move, Subodh Marathe, Country Head, Tata Motor (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. We are happy to have State Bank of Hyderabad on board"
Established in 1945, Tata Motors' is the largest automobile company in India, with consolidated revenues of Rs.70,938.85 crores during financial year 2008-09. It is the first Indian company from engineering sector to be listed in the New York Stock Exchange (September 2004).
The manufacturing bases of the company are based in Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). In 2005, the company entered into a strategic alliance with Fiat to set up Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce Fiat cars, Tata cars and Fiat power-trains.
In March 2009, the company launched Tata Nano, the People's Car which is the world's cheapest car priced at Rs.100,000 (excluding VAT and transportation cost). Recently , the company launched a new car ‘Grande Punto'.
Earlier the carmaker entered into an alliance with Bank of India for financing Fiat cars.
State Bank of Hyderabad, one of the largest associate bank of State Bank of India has pan India presence and operates through more than 1000 bank branches. The bank has currency chests in Andhra Pradesh, Karnataka, Maharashtra, Delhi and Chennai, and is also authorised to distribute coins to the public.