Uco bank has signed a Memorandum of Understanding (MoU) with Hyundai Motors India so as to scale up the demand in the auto loan segment.

Hyundai Motors is the second largest automaker in the country.

Under this agreement, both parties would aim to leverage from each other's competencies and in the process focus towards expansion. The bank's auto loan portfolio would increase and in return the bank would cross sell Hyundai's products.

Arvind Saxena, Director, Director - Marketing & Sales, HMIL and S K Dey Purkayastha, General Manager - Retail Banking & Corporate Communication, Uco Bank acted as representatives of their organizations and signed the MoU.

Through this tie up, Uco Bank will become the most preferred financier of Hyundai Motors India and will lend auto loans to eligible customers who wish to buy Hyundai cars. This deal will help the bank to increase its car loan portfolio substantially, the bank's Chairman and Managing Director, S K Goel said.

"This tie-up will give us a platform from where different products of our bank can be marketed to prospective buyers of Hyundai Motor India cars throughout the country. Thus the bank's retail portfolio as well as customer base can be increased," he said in a statement.

"In order to increase the competitiveness of the bank's car loan scheme, the product has been modified and interest rate lowered to make it more attractive in the market place," Ajai Kumar, executive director of the bank, said.

The 66-year old Uco bank holds 2,151 branches with 35 zonal offices across the country.