Tata Motors, India’s biggest automobile company, has signed up a contract with Union Bank of India with the aim to finance its range of passenger vehicles.

The company’s aim is to offer an additional facility of car finance to its clientele.

The banking institution 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%.

The facility will be available at UBI divisions and 329 sales touch points of Tata Motors.

This affiliation will provide a single window for both cars plus car loans and will make car purchasing procedure simpler for customers.

The company has also signed up an agreement with State Bank of Patiala and Bank of India for funding its different passenger vehicles.

SBoP will provide car loans up to 85% on-road price, for tenure ranging up to 7 years, at a competitive rate of interest, while 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%.

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

The state administration has sanctioned 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.

The company’s (Tata Motors) shares declined Rs 1.8 (1.3%) at Rs 136.70 on the Bombay Stock Exchange (BSE). The total volume of shares traded stood at 542,613. The share price has seen a 52-week high of Rs 742.76 and a low of Rs 122 on the BSE.