Nano Booking Closed

Tata Nano booking acceptance closes, Tata Motors is thinking of extending the booking date for neno

Booking amount financing available from Rs.2850; Retail auto loan available at interest rates starting from 9%; Insurance premium starts at Rs.3468 (ex New Delhi)

The booking of the Tata Nano opens tomorrow on April 9th and will continue up to the end of day on April 25, 2009. Tata Motors has entered into agreements with 18 preferred banks/NBFCs to enable prospective customers to get finance and facilitate booking of the car.

The sale of application forms has already started from April 1, to a very encouraging response. The Tata Nano website has recorded over 50 million (5 crore) hits, including over 20 million (2 crore) hits in the fortnight since the launch on March 23, 2009. The forms are available at a price of Rs.300 (for online booking Rs.200). The forms can be bought at over 30,000 locations in about 1,000 cities through Tata Motors Passenger Car dealerships, State Bank of India and its branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma, ‘World of Titan’ and Tata Indicom exclusive stores. The forms come with a range of offers from select associate Tata Group companies up to Rs.1100.

Customers can either pay the entire booking amount -- of Rs.95,000 (Tata Nano Std.), Rs.120,000 (Tata Nano CX), and Rs.140,000 (Tata Nano LX) -- themselves or seek financing of the booking amount.

Booking amount financing available from Rs.2850

The company’s partnership with the preferred financing partners has enabled attractive options of financing the booking amount, which start from a low of Rs.2850. The details are as follows:

Preferred banks/NBFCs
Bank Name	Financing of booking amount of Rs.95000 for the Tata Nano Std. version
State Bank of India	Rs. 2,999
Canara Bank	Rs. 2,850
Tata Motor Finance	Rs. 3,199
Corporation Bank	Rs. 2,999
Central Bank of India	Rs. 3,256
Indian bank	Rs. 3,343
State Bank of Tranvancore	Rs. 2,999
State Bank of Bikaner and Jaipur	Rs. 2,999
State Bank of Indore	Rs. 3,516
State Bank of Patiala	Rs. 2,999
State Bank of Hyderabad	Rs. 2,999
State Bank of Mysore	Rs. 2,999
ICICI Bank Ltd.	Rs. 2,999
Union Bank of India	Rs. 2,950
United Bank of India	Rs. 3,137
Punjab National Bank	Rs. 3,733
UCO Bank	Rs. 2,975
The Federal Bank Ltd.	Rs. 4,110
Corporation Bank	Rs. 2,999

Customers can submit their application forms to their chosen financier. The financier will, on their behalf, submit their application forms to the State Bank of India, which is managing the booking process. Those who are themselves paying the entire booking amount can submit their application forms directly to State Bank of India through 1,350 notified branches in 850 cites, and also at Tata Motors Passenger Car dealerships, Westside and Croma outlets. Option to submit bookings online is available at www.tatanano.com.

Retail auto loan interest rates for the Tata Nano

Post the successful allotment of the bookings, customers can convert their booking loan into a retail auto loan for the Tata Nano at very attractive rates with the preferred financiers:

Retail auto loan interest rates
Preferred banks/NBFCs	Interest rate post Allotment
State Bank of India	11.75%
Canara Bank	9.5-11%
Tata Motor Finance	12 – 13%
Corporation Bank	11-11.5%
Central Bank of India	9.5-11%
Indian bank	11%
State Bank of Tranvancore	11.75-12%
State Bank of Bikaner and Jaipur	11.75%
State Bank of Indore	11.50%
State Bank of Patiala	11.50 – 12%
State Bank of Hyderabad	11.75%
State Bank of Mysore	11.25-11.75%
ICICI Bank Ltd.	13.00%
Union Bank of India	11-11.25%
United Bank of India	9%
Punjab National Bank	11%
UCO Bank	11 – 11.50%
The Federal Bank Ltd.	14.25%
Corporation Bank	11-11.5%

Insurance premium for the Tata Nano

Tata Motors has also entered into agreements with five partner insurance companies to offer comprehensive insurance, under the ‘Tata Motors Insurance’ banner, for the Tata Nano at a rate of just 2.76% of the ex-showroom price of the car, the most competitive in the industry. In New Delhi, the insurance premiums will be as follows:

	Nano	Nano CX	Nano LX
Ex-showroom price New Delhi (Rs.)	123360	148360	172360
Insurance premium (Rs.)	3468	3959	4431

The empanelled insurance companies are National Insurance Co Ltd, ICICI Lombard General Insurance Co Ltd, Royal Sundaram Alliance General Insurance Co Ltd, United India Insurance Co Ltd and HDFC Ergo General Insurance.

Deliveries

Within 60 days of the closure of bookings on April 25th , 2009, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerised random selection procedure. These 100,000 allotments will be price protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for the customers. Deliveries will commence from July 2009.

Applicants have the option to retain their booking deposit, even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for retention period between one year to two year and 8.75% for a retention period of more than 2 years. Allotment of retainees will be simultaneously communicated, along with the allotment of the first 100,000 cars.

Only 48 Hours left to Book Tata Nano..

Tata Nano booking acceptance opens till end of day April 25, that is only 48 hours more left to book your nano car. Tata Motors is thinking of extending the booking date for neno

Booking amount financing available from Rs.2850; Retail auto loan available at interest rates starting from 9%; Insurance premium starts at Rs.3468 (ex New Delhi)

The booking of the Tata Nano opens tomorrow on April 9th and will continue up to the end of day on April 25, 2009. Tata Motors has entered into agreements with 18 preferred banks/NBFCs to enable prospective customers to get finance and facilitate booking of the car.

The sale of application forms has already started from April 1, to a very encouraging response. The Tata Nano website has recorded over 50 million (5 crore) hits, including over 20 million (2 crore) hits in the fortnight since the launch on March 23, 2009. The forms are available at a price of Rs.300 (for online booking Rs.200). The forms can be bought at over 30,000 locations in about 1,000 cities through Tata Motors Passenger Car dealerships, State Bank of India and its branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma, ‘World of Titan’ and Tata Indicom exclusive stores. The forms come with a range of offers from select associate Tata Group companies up to Rs.1100.

Customers can either pay the entire booking amount -- of Rs.95,000 (Tata Nano Std.), Rs.120,000 (Tata Nano CX), and Rs.140,000 (Tata Nano LX) -- themselves or seek financing of the booking amount.

Booking amount financing available from Rs.2850

The company’s partnership with the preferred financing partners has enabled attractive options of financing the booking amount, which start from a low of Rs.2850. The details are as follows:

Preferred banks/NBFCs
Bank Name	Financing of booking amount of Rs.95000 for the Tata Nano Std. version
State Bank of India	Rs. 2,999
Canara Bank	Rs. 2,850
Tata Motor Finance	Rs. 3,199
Corporation Bank	Rs. 2,999
Central Bank of India	Rs. 3,256
Indian bank	Rs. 3,343
State Bank of Tranvancore	Rs. 2,999
State Bank of Bikaner and Jaipur	Rs. 2,999
State Bank of Indore	Rs. 3,516
State Bank of Patiala	Rs. 2,999
State Bank of Hyderabad	Rs. 2,999
State Bank of Mysore	Rs. 2,999
ICICI Bank Ltd.	Rs. 2,999
Union Bank of India	Rs. 2,950
United Bank of India	Rs. 3,137
Punjab National Bank	Rs. 3,733
UCO Bank	Rs. 2,975
The Federal Bank Ltd.	Rs. 4,110
Corporation Bank	Rs. 2,999

Customers can submit their application forms to their chosen financier. The financier will, on their behalf, submit their application forms to the State Bank of India, which is managing the booking process. Those who are themselves paying the entire booking amount can submit their application forms directly to State Bank of India through 1,350 notified branches in 850 cites, and also at Tata Motors Passenger Car dealerships, Westside and Croma outlets. Option to submit bookings online is available at www.tatanano.com.

Retail auto loan interest rates for the Tata Nano

Post the successful allotment of the bookings, customers can convert their booking loan into a retail auto loan for the Tata Nano at very attractive rates with the preferred financiers:

Retail auto loan interest rates
Preferred banks/NBFCs	Interest rate post Allotment
State Bank of India	11.75%
Canara Bank	9.5-11%
Tata Motor Finance	12 – 13%
Corporation Bank	11-11.5%
Central Bank of India	9.5-11%
Indian bank	11%
State Bank of Tranvancore	11.75-12%
State Bank of Bikaner and Jaipur	11.75%
State Bank of Indore	11.50%
State Bank of Patiala	11.50 – 12%
State Bank of Hyderabad	11.75%
State Bank of Mysore	11.25-11.75%
ICICI Bank Ltd.	13.00%
Union Bank of India	11-11.25%
United Bank of India	9%
Punjab National Bank	11%
UCO Bank	11 – 11.50%
The Federal Bank Ltd.	14.25%
Corporation Bank	11-11.5%

Insurance premium for the Tata Nano

Tata Motors has also entered into agreements with five partner insurance companies to offer comprehensive insurance, under the ‘Tata Motors Insurance’ banner, for the Tata Nano at a rate of just 2.76% of the ex-showroom price of the car, the most competitive in the industry. In New Delhi, the insurance premiums will be as follows:

	Nano	Nano CX	Nano LX
Ex-showroom price New Delhi (Rs.)	123360	148360	172360
Insurance premium (Rs.)	3468	3959	4431

The empanelled insurance companies are National Insurance Co Ltd, ICICI Lombard General Insurance Co Ltd, Royal Sundaram Alliance General Insurance Co Ltd, United India Insurance Co Ltd and HDFC Ergo General Insurance.

Deliveries

Within 60 days of the closure of bookings on April 25th , 2009, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerised random selection procedure. These 100,000 allotments will be price protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for the customers. Deliveries will commence from July 2009.

Applicants have the option to retain their booking deposit, even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for retention period between one year to two year and 8.75% for a retention period of more than 2 years. Allotment of retainees will be simultaneously communicated, along with the allotment of the first 100,000 cars.

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.

Nano Booking Over - Still Counting Nano Booking Numbers

The booking for the world's cheapest car Nano launched by the Tatas has ended but the numbers are still being counted, a Tata Motors spokesperson said. The market estimates on the bookings vary from as few as a couple of lakhs to over one million.

Tata motors itself has not given any information so far. The spokesperson said the company is still compiling the number and the exercise may take a few days.Enquiries with some of the banks with which the company has tied up for booking and financing of the car also failed to reveal any information on the number of bookings. However, carwale.com, one of the websites which accepted online booking for Nano, said it has done 10,000 bookings of Tata's Nano car. "We have secured 10,000 bookings of Nano across 500 cities," carwale.com Vice-President Tufail Khan told PTI.He said 50 per cent of the booking has been done through credit cards and the rest through cheque payment.

About 55 per cent of the bookings have been for the top- end version of the Nano, 25 per cent for the middle version and the remaining 20 per cent is for the base model.

Source: indiatimes.com

Nano booking forms pile up

With only a day to go before Tata Motors closes the bookings for the Nano, some of the company’s dealers seem to be a worried lot. These dealers, who had bought between 2,000 and 10,000 application forms, anticipating huge demand for booking, are now stuck as a large chunk has remained unsold. But, company insiders think there will be substantial increase in bookings on the last day (Saturday). The dealers had bought each booking form for Rs 250 and had sold it to customers for Rs 300.

According to a prominent Mumbai-based Tata Motors
dealer, a substantial chunk of the forms that was bought by him from the company are still unsold. “It seems we had overestimated the demand for the Nano as over 30% of the total forms we had bought are still with us. We are hoping that customers will buy the forms and book the car on the last day.”

Asked whether the dealers have put forth a request to solve the issue of the unsold Tata Nano booking forms, the Tata Motors’ spokesperson said: “We have no such issues from dealers on our table. Hypothetically, even if there were to be such an issue, it would be an internal mater of the company and its dealers and need not be commented publicly.”

Confusion over the booking procedure, unavailability of test drives, uncertainty over delivery schedules are some of the reasons that seem to have forced customers to stay away from booking, said other people connected with the development
.

All major metro markets have seen greater demand for the mid- and top-end variants of the Nano, while the tier II and tier III markets have seen more bookings of the base- and mid-Nano variants. Earlier, industry estimates were that bookings would be in the range of 5 lakh to 10 lakh.

Currently, industry sources indicate a total booking figure of around 2 lakh. It is expected that the Nano would be more successful in the tier II and tier III markets. A Tata Motors dealer, based out of a tier III city in Gujarat, said: “The response for the forms is on the lower side.”

However, as far as online sales were concerned, Nano was a hit. The Rs 1 lakh car can be booked online through the dedicated portal, carwale.com. The portal had set a target to sell bookings for 10,000 cars and it has achieved that. The Mumbai-based dealer said they are planning to approach Tata Motors to take back the unsold forms. The meeting could likely happen on Monday, said one of the dealers.

Firms Book Nano in Bulk to Reward Employees

Kolkata: The firms in India are opting for relentless booking of Tata Motor's car Nano, to offer it as an employee reward. Employees in the IT sector too, who have been pummeled by the recession, have chosen Nano as their preferred car and are aggressively making a dash for it.

"Apart from Shree Cement, Linc Pen too has gone in for bulk Nano bookings through us. The pen major has booked 11 Nanos," Anil Bagaria, Managing Director of KB Motors, a Tata Motors dealer told The Economic Times. Shree Cement has booked 1000 Nanos for the purpose. "I decided to book Nano not because it is a cheap car but due to its fuel efficiency. The cars will be given to the employees as part of the company's HR strategy," said Shree Cement Managing Director HM Bangur.

The decision comes as part of driving employee motivation during the recession, without mounting on costs. Sectors like FMCG, pharma, telecom and healthcare are going ahead with employee reward schemes and according to HRs, Nano can be a viable option. "Instead of rewarding top performers with incentives like foreign holiday tours, Nano is emerging as an alternative reward option. Even for those in sales function, gifting Nano could be a way to upgrade them from two-wheelers to four-wheelers," said E Balaji, CEO, Ma Foi Management Consultants.

source: siliconindia.com

Eligibility Norms Made Eassy for Nano Bank Loans

In order to keep the lower middle-class attracted towards the Tata Nano loan schemes, banks are maintaining an easy minimum eligibility criteria.

Banks that have already tied up with Tata Motors for financing the car are following this practice. For instance the industry leader, State Bank of India (SBI) has reduced the income eligibility criteria for Nano aspirants from Rs 1 lakh to Rs 75,000 per annum.

Likewise United Bank of India (UBI) has also said that it will offer Nano loans to individuals with a minimum monthly income of Rs 5000 or Rs 60,000 per annum. "We have kept the minimum eligibility easy as we would like to project us as a people's bank. This will fit with the Tata Motors' people's car," said the bank's CMD, SC Gupta.

However it is a different matter that until now UBI has received booking request from individuals with gross monthly salaries in the range of Rs 25,000-30,000.

On the other hand, Canara Bank and Indian Bank are maintaining tighter norms and offering the loans to individuals with minimum annual income of Rs 1.50 lakh and Rs 1.80 lakh respectively.

Although the eligibility criteria has been eased by the banks but it does not ensure that the customer would be able to avail a Nano loan by merely fulfilling the eligibility norms laid down by the respective bank. The customers are required to have a net take home salary of 60% of gross salary after paying off their EMI (equated monthly installment) and payments towards provident funds.

In fact ICICI bank has displayed this information in its website. "Financing of the booking amount by ICICI Bank does not guarantee sanction of subsequent car loan upon allotment of Nano car," stated the bank.

A senior official of UBI also agreed on this point and said, "We are not offering any guarantees either. We will be comfortable to offer loans for Nano to our own customers or customers having salary accounts with us."

Applicants who will get the allotment based on a computer generated lottery system will be required to complete the formalities of settling the booking amount financed within 90 days of the last date of booking period.

Loan Details Buying Tata Nano

I am sure there is business sense for both State Bank of India (SBI) and Tata Motors in this alliance. For those who don’t know about it yet, Tata Nano can be bought on loan only from SBI. Tata Motors has got into an exclusive deal with SBI for this. It does not end there. Say you have the needed Rs 1.25 lakh or so for a Nano. You still have to go through SBI. In this case, you would need to get a demand draft of SBI issued in favour of Tata Motors.

On the one hand, it is no different from an exclusive showroom for a car - you cannot buy a Swift from a Honda showroom, for example. On the other hand, Tata Nano is a people’s car (so to speak) and there is some reason for a loan to be availed of from any bank, anywhere in India. And what about the other public sector banks, like say, State Bank of Travancore? The announcement says that Tata Motors will utilise the seven associate banks of SBI. So it is not just the SBI.

Sure, SBI has a vast network of around 11,000 branches, and add to that the 2000 branches of the associate banks, and that gives Tata Motors a vast reach for sure. According to the latest Reports, Tata Motors is putting the final touches to a finance scheme for the Nano car through a tie-up with the State Bank of India, India's largest bank, under which the bank will finance 70 per cent of the price of the car at an interest rate of 14 to 14.75 per cent for a tenure of up to five years.

Private banks such as HDFC, ICICI and Kotak Mahindra have decided against entering into a rate war with PSU banks over the financing of Nano for now, as they fear aggressive interest rates could lead to high defaults. Though they are still in discussions with Tata Motors, they do not want to offer loans at less than normal rates for Nano customers.

Private auto finance companies — which command more than 60% of the car loan market — are planning to cater to the more upmarket Nano buyer in big cities. The low cost car that will attract customers mainly from the lower middle class and hence it is going to be a risky proposition for most lenders that will extend car loan for the Nano. In fact some lenders have decided to extend booking finance for the vehicle but that the interest rate charged on the loan will be higher during the booking period. The main reason behind this is that lenders expect the rush for loans from the less well off people with whom the risk association is more. Hence banks will charge higher interest rates at the booking stage and after the car is delivered and the lender can mortgage against it, interest rate will be lowered for the rest of the tenure.
What You Need to Look For Before Availing Your Car Loan ?
* Financing your new car - Unless you're paying hard cash, you need to undertake a crash course on becoming a quasi "loans expert" if you're planning to buy a car in the near future and don't have an expert to handle your loan repayments. It makes no difference about the type of car you desire; the basic remains the same for all car types - cars, sedans, SUVs, pickups, mini vans, jeeps etc. You "borrow" once and "repay" on a monthly basis. Since you don't have enough cash to fund your vehicle, or maybe you do have cash but still prefer to go in for a car loan (you pay a "down payment" - a fraction of the car's cost), you are going to need financiers. Different financiers provide loans for different purposes. And the loan criteria also changes with the type of loan you need. So do your homework and research the financiers - "what person" or "company" is providing "what", and what are the criteria for availing the credit. It's important to avail loan options that offer affordable car loan rates.

* Get pre-approved - It's possible to buy your car if you end up getting the required credit. So the ownership of your car depends upon the availability of your car loan. Therefore it makes sense to "shop" for a "loan" first and once you get the approval, you "shop" for your car. The process of "approving" or "arranging" for your "loan" before actually deciding upon the vehicle is referred to as "pre-approval". Getting your "pre-approval" is important since you are sure you have a source of finance for your car and your efforts put in while selecting or deciding your vehicle won't go to waste.

* Find the right financing company - All creditors are not alike. You can save a significant amount of money by selecting the right kind of finance providing car loan rates which suits your needs. Creditors follow a common pattern for charging the interest rates; however their monthly repayment schedule can vary. It's the creditor's discretion to decide how he or she wants the debt to be paid off. Finding the most cost effective loan will help you save a lot of money in the end - when you totally pay off your loan.

* Borrowing money against some investments or savings - There's another option available. If you've saved some money and invested the same in bonds or deposits in banks, chances are you might be eligible for "overdraft" facility against your investments. In such cases the car loan option works out to be very much in your favor as a lot of latitude is given in repaying the loan back. And you end up paying the difference of your savings rate minus the "borrow" or "interest" rate.

* The quicker you payback, the more you save in the end - Creditors charge their interest on the duration of the "borrowings" i.e. for how long you need to avail the car loan facility. It means your net payable interest amount is in direct relation to the time you avail the credit facility. So if you make plans to pay off your debt within a short span to time, you end up paying lesser interest and end up saving money.