Kolkata, May 18 State Bank of India might account for almost 50 per cent of the total loan bookings made for the small car Nano and is hopeful of disbursing loans worth Rs 900 crore, according to the bank’s Chief General Manager, Personal Banking, Mr P. Nandakumaran.
“Seventy per cent of the total bookings (2.03 lakh) announced by Tata Motors Ltd were booked through loans. SBI will be targeting about 50 per cent of the total loan bookings which will work out to about 75,000 applicants,” Mr Nandakumaran told Business Line.
“The bookings for Nano have primarily come from urban and metro centres,” Mr Nandakumaran confirmed. Business Line had earlier reported that the Nano had received a lukewarm response from Tier II and Tier III towns, which were originally perceived as the primary market for the car.
The bank had offered a Nano booking loan product with a one-time upfront booking fee of Rs 2,999 for the base model (which has an ex-showroom price of Rs 1.2 lakh in Delhi), Rs 3,499 for the intermediate model (Rs 1.40 lakh) and Rs 3,999 (Rs 1.70 lakh) for the high-end model.
The booking could be converted into a SBI Nano car loan once a customer gets allocation to the car. The maximum tenure of the loan would be seven years and the rate of interest could range between 11.75 and 12 per cent interest.
The margin required would be 15 per cent, which means for a loan of Rs 1 lakh, the customer would have to pay upfront cash of Rs 15,000 while the bank would pay the balance of Rs 85,000.
Auto loan shareSBI’s auto loan portfolio grew by 36 per cent at Rs 9,713 crore (Rs 7,149 crore) in 2008-09. According to the Society of Indian Automobile Manufacturers (SIAM), the market share of the bank in auto loans increased to 12 per cent (10 per cent) this year. Apart from a tie-up with Tata Motors for Nano, the bank has also tied up with Maruti and Hyundai.
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