Tata Motors has announced that it has signed up a vehicle finance tie-up with State Bank of Travancore.

With this, India’s biggest automobile company aims to offer an added facility of car finance to its clientele.

The bank offers car loans up to 85% of invoice, for term ranging up to 7 years, at a very competitive rate of 10% up to May 15, 2010 for loans sanctioned on or before April 30, 2009.
 
The facility will be available at SBT divisions and 470 sales touch points of Tata Motors.

State Bank of Travancore is one of the biggest public sector undertakings catering to the requirements of business in addition to retail segment.

The bank has 723 branches across India.
 
The company has also signed deals with State Bank of Patiala, Bank of India and Union Bank of India for funding its different passenger vehicles.

SBoP will offer car loans up to 85% on-road price, for tenure ranging up to 7 years, at a competitive rate of interest, whereas BoI provides car loans up to 90% of invoice, for loans up to Rs 1 million for tenure ranging up to 6 years, at a very competitive rate of 10.25% to 10.75%.

The UBI provides car loans up to 85% of invoice, for term ranging up to 5 years, at a very competitive rate of 11% to 11.25%.

Moreover, the Uttarakhand administration has decided to offer more grants for Nano project by Tata Motors.

The state administration has approved 1,000 acres of land at reasonable rates.

Now, the administration has decided to permit Tata to sub-lease the assigned land to its marketers. Besides, the lease rent is to be cut which was only Rs 5 a sq meter, it is to be slashed to just Rs 1 a sq meter.

At 03:32, the company’s (Tata Motors) shares gained 11.0% at Rs 162.05 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 742.76 and a low of Rs 122 on the BSE.