India's third largest car manufacturer, Tata Motors entered in an agreement with public sector bank, the Central Bank of India, to avail finance facilities for all categories of vehicles.

The bank would offer loan at interest rate of 10.5 per cent for 3 years tenure and 11.5 per cent for more than 3 years, covering 85 per cent of the road price of car.

The company said in a press release, "In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Central Bank of India for financing its range of passenger vehicles."

The bank would provide finance facilities at all the 3,500 branches of the lender and 329 sales touch points of Tata Motors through a single window system, making car buying easier for customers.

Recently, Tata Motors has also tied up with Corporation Bank for finance facilities of passenger vehicles and to offer speedy and easy auto-loan to buyers.

Shares of company rose 0.49 per cent and closed at Rs 132.15 per share on the Bombay Stock Exchange (BSE).