Country's largest automobile company Tata Motors on Tuesday informed that it has entered into a tie-up with the Union Bank of India (UBI) for financing its range of passenger vehicles.

Under the arrangement, the lender will offer car loans up to 85 per cent of invoice, for tenure ranging up to five years, at a rate of 11-11.25 per cent.

The loan facility will be available at all branches of Union Bank of India and 329 sales touch-points of Tata Motors, company stated in a release.

Tata Motors expects that latest tie-up will provide a single-window for both cars as well as car loans and will make car buying easier for customers.

Yesterday, Tata Motors entered into a similar agreement with State Bank of Patiala. State Bank of Patiala will offer car loans up to 85% on-road price, for tenure ranging up to 7 years, at a very competitive rate of interest.