SBI may account for 50% of total bookings

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 share

SBI’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.

Information on Bank loan for Buying Tata Nano

Want a loan for Tata Nano...? Is your monthly salary Rs 6,250..?

state Bank of India has relaxed the income eligibility criterion for customers interested in applying for car loans to buy a Tata Nano.As a result, the potential buyer base has widened considerably for the country’s least expensive car.

The minimum income eligibility would be Rs 75,000 a year for customers drawing regular salaries and Rs 1 lakh a year for the self-employed, said a senior SBI official.At present, the income eligibility criterion to apply for SBI car loan is Rs 1 lakh both for salaried and self-employed people. Click here to read more...


UCO Bank to sign agreement to offer loans for Nano


UCO Bank said it is going to sign an agreement with Tata Motors in order to offer loans
to people planning to book Nano.
Bank chairman S K Goel said here on Friday that the agreement would be signed next week.

Uco Bank has also announced a car financing pact with Maruti Suzuki India on Friday to boost its auto loan business. The bank is also talking to a host of other auto makers including Bajaj Auto and Mahindra & Mahindra for financing agreements, Mr Goel said. Click here to read more...

Tata Nano Buyers can now Get loan from any SBI Bank branche's

Buyers can seek loans from any bank to buy Tata Motors' Nano car despite the company signing a deal with State Bank of India (SBI),SBI Chairman O P Bhatt said.

"People can seek loans for the Nano from any other bank as well. The tie-up is meant to manage all booking points, including distribution and collection of applications," Bhatt told reporters here on the sidelines of a programme at XLRI last night. Click Here to read more....

Extending loan for Tata Nano cost's you Rs 1,425 per anam

If you don’t get to own a Nano in the first phase of allotment, you will have to shell out at least Rs 1,425 a year if you wish to extend the period of your bank loan
for retaining the booking deposit with Tata Motors. This outgo will be over and above the interest payable for the initial three-month booking period. Click here to read more..

Banks to charge a fee for retaining the booking deposits of Nano

A Tata Nano aspirant who does not get the allotment at the first phase is expected to pay an additional fee for retaining their booking deposits for the second phase. If an individual wants to extend his loan period to retain the booking deposit with Tata Motors then he will have to shell out a payment that is over and above the interest payment for the period. Click here to know more..

whant a loan on tata nano...? Is your monthly salary Rs 6,250..?

state Bank of India has relaxed the income eligibility criterion for customers interested in applying for car loans to buy a Tata Nano.As a result, the potential buyer base has widened considerably for the country’s least expensive car.

The minimum income eligibility would be Rs 75,000 a year for customers drawing regular salaries and Rs 1 lakh a year for the self-employed, said a senior SBI official.At present, the income eligibility criterion to apply for SBI car loan is Rs 1 lakh both for salaried and self-employed people.

The criterion has been relaxed keeping in mind that the Tata Nano is designed to meet the demands of low-income customers, the official said.

Clearly, the Nano is targeted at the two-wheeler customers as well as competitors in the compact car segment.

SBI is offering 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, he added.

In case the customer is allocated a Nano, then the booking loan can be converted to a SBI Nano car loan. The loan would be provided up to a maximum period of seven years at 11.75-12 per cent interest. The margin requirement for the loans would be 15 per cent. That is, for Rs 1 lakh loan, the customer would have to pay Rs 15,000 upfront to get the bank to give a loan for Rs 85,000.

Back-of-the-envelope calculations show that in the case of three and five-year loans at 11-11.75 per cent, the equated monthly instalments work out roughly to Rs 3,300 and Rs 2,200 respectively.

In the case of a seven-year loan, which could be the biggest plus for the Nano vis-À-vis its closest rival, the Maruti 800, the EMIs would be in the region of Rs 1,725-Rs 1,765 for interest rates ranging between 11.25 and 12 per cent.

In the case of Union Bank of India, which has also been roped in for the Nano financing scheme, the maximum loan tenure is five years. However, the minimum could be even six months depending on the customer’s ability to repay, said a senior bank official.

Tata Nano Buyers can now Get loan from any SBI Bank branche's

Buyers can seek loans from any bank to buy Tata Motors' Nano car despite the company signing a deal with State Bank of India (SBI),SBI Chairman O P Bhatt said.

"People can seek loans for the Nano from any other bank as well. The tie-up is meant to manage all booking points, including distribution and collection of applications," Bhatt told reporters here on the sidelines of a programme at XLRI last night.

According to him, the deal was signed as it is not possible for any company to go to hundreds of banks to handle such a huge distribution and collection of applications.

Though most of the application collection would be done by SBI, others could also do the same, Bhatt said.

Bhatt said SBI would charge 10 per cent interest on car loans to buy the Nano in the first year and later the rate would be the same as other automobile loans.

Sorce: India Times