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.
Showing posts with label bank loan for tata nano. Show all posts
Showing posts with label bank loan for tata nano. Show all posts
Bank loans for Tata Nano will come cheaper
Bank loans for Nano will come cheaper compared to the regular fare of car finance. To make the most of the Nano euphoria and grow business in the process, Nano financiers are planning discounted interest rates -- which are tipped to figure at 50 to 150 basis points (bps) lower than regular car loan rates.
Whether its Bank of India (BoI) to Canara Bank and Indian Bank to United Bank of India (UBI), the story is the same. Everyone s eager to ride the bandwagon and maximise their share of the Nano financing pie with special schemes.
So far, Kolkata-headquartered UBI has lined up one of the most exciting Nano financing schemes. The bank has decided to offer loans at as low as 9% a year for purchasing the small car, which is being promoted as the people s car. The rate is a hefty 100 bps lower than UBI s card rate for car loans at 10%.
Chennai-based Indian Bank has pegged its interest rate for Nano at 11%, which is 75 bps lower than its regular car loan rate. Both UBI and Indian Bank offer car loans at a fixed rate. Canara Bank s interest rates will hover between 9.5-11.5% for varying tenures, while BoI will charge 10.25-10.75% per annum.
Banks will be able to offer a lower interest rate for Nano, as the operational cost will be lower in case of Nano loans, said Canara Bank chairman and managing director A.C. Mahajan. There will be a big surge in advances at one go. We will just have to service the loans in the future, the CMD explained.
Going beyond the fianncials, banks are also planning to score in terms of Nano financing to gain prominence. UBI chairman and managing director S.C. Gupta said: Offering loans for Nano at a lower rate would not cost us much. But, through the special scheme for Nano, we hope to make a mark with customers.
Nevertheless, ICICI Bank, the largest private bank, may not offer a differential car loan rate for Nano customers. We have not finalised a specific car loan product for the Nano as yet.
However, in all probability, our rate for Nano loans may not vary from our regular car loan rates, ICICI Bank head for vehicle finance Ravi Narayanan said.
State Bank of India, the exclusive booking agent for Nano, has also been silent so far on the issue of interest rates for Nano loans.
Tata Motors has entered into agreements with some 15 banks and non-banking finance companies for financing its latest offering. Apparently, banks are taking all these steps to avoid missing out on the opportunity to score big in terms of car loan business as well as publicity.
Canara Bank has decided to peg the interest rate at 9.50% for the first year of the loan for Nano. The rate will be 10.5% a year for the second and third year and 11.5% per annum for the next four years of the seven-year tenure. Interestingly, Canara Bank offers other car loans for a maximum tenure of three years.
To score high on this front, BoI plans a three-month moratorium on interest and principal repayment for its existing customers. It will charge a floating rate of 10.25% a year for repayment period less than 36 months and a 10.75% rate for a 3-6 year loan tenure.
Source : economictimes.com
Whether its Bank of India (BoI) to Canara Bank and Indian Bank to United Bank of India (UBI), the story is the same. Everyone s eager to ride the bandwagon and maximise their share of the Nano financing pie with special schemes.
So far, Kolkata-headquartered UBI has lined up one of the most exciting Nano financing schemes. The bank has decided to offer loans at as low as 9% a year for purchasing the small car, which is being promoted as the people s car. The rate is a hefty 100 bps lower than UBI s card rate for car loans at 10%.
Chennai-based Indian Bank has pegged its interest rate for Nano at 11%, which is 75 bps lower than its regular car loan rate. Both UBI and Indian Bank offer car loans at a fixed rate. Canara Bank s interest rates will hover between 9.5-11.5% for varying tenures, while BoI will charge 10.25-10.75% per annum.
Banks will be able to offer a lower interest rate for Nano, as the operational cost will be lower in case of Nano loans, said Canara Bank chairman and managing director A.C. Mahajan. There will be a big surge in advances at one go. We will just have to service the loans in the future, the CMD explained.
Going beyond the fianncials, banks are also planning to score in terms of Nano financing to gain prominence. UBI chairman and managing director S.C. Gupta said: Offering loans for Nano at a lower rate would not cost us much. But, through the special scheme for Nano, we hope to make a mark with customers.
Nevertheless, ICICI Bank, the largest private bank, may not offer a differential car loan rate for Nano customers. We have not finalised a specific car loan product for the Nano as yet.
However, in all probability, our rate for Nano loans may not vary from our regular car loan rates, ICICI Bank head for vehicle finance Ravi Narayanan said.
State Bank of India, the exclusive booking agent for Nano, has also been silent so far on the issue of interest rates for Nano loans.
Tata Motors has entered into agreements with some 15 banks and non-banking finance companies for financing its latest offering. Apparently, banks are taking all these steps to avoid missing out on the opportunity to score big in terms of car loan business as well as publicity.
Canara Bank has decided to peg the interest rate at 9.50% for the first year of the loan for Nano. The rate will be 10.5% a year for the second and third year and 11.5% per annum for the next four years of the seven-year tenure. Interestingly, Canara Bank offers other car loans for a maximum tenure of three years.
To score high on this front, BoI plans a three-month moratorium on interest and principal repayment for its existing customers. It will charge a floating rate of 10.25% a year for repayment period less than 36 months and a 10.75% rate for a 3-6 year loan tenure.
Source : economictimes.com
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..
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..
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.
The bank has also slashed its benchmark prime lending rate (BPLR) by 50 basis points to 12% effective from April 1. Elaborating on the proposed agreement with Tata Motors, Mr Goel said Uco would offer loans to customers fully or partly for making the initial deposit for booking Nano. The bank would charge a 10% interest rate per annum on the loan. Customers would need to deposit Rs 95,000 for booking the basic model of Nano.
The bank would also convert the initial booking loan to a regular car loan if the customer gets allotment of Nano and seeks financing support for a longer term. The interest rate for the car loan then would depend upon the prevailing interest rates, Mr Goel said.
At present, the bank offers car loans at 11.75% a year. The rate stands reduced to 11% per annum in case a borrower offers full collateral security against the loan. Uco's car loans are linked to its BPLR and so the rates will fall from April 1.
People planning to take loans from Uco or, for that matter, any other Tata Motors preferred financiers, for booking Nano would need to submit the application forms to State Bank of India (SBI) which is Tata Motors exclusive partner for managing the entire booking process.
Tata Motors has earlier said that it has already entered into agreements with some 15 banks and NBFCs for the Tata Nano booking loan product. Customers will need to collect application forms from Tata Motors Passenger Car dealerships, SBI and its branches, subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma,World of Titan and Tata Indicom exclusive stores.
sorce: India Times
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.
The bank has also slashed its benchmark prime lending rate (BPLR) by 50 basis points to 12% effective from April 1. Elaborating on the proposed agreement with Tata Motors, Mr Goel said Uco would offer loans to customers fully or partly for making the initial deposit for booking Nano. The bank would charge a 10% interest rate per annum on the loan. Customers would need to deposit Rs 95,000 for booking the basic model of Nano.
The bank would also convert the initial booking loan to a regular car loan if the customer gets allotment of Nano and seeks financing support for a longer term. The interest rate for the car loan then would depend upon the prevailing interest rates, Mr Goel said.
At present, the bank offers car loans at 11.75% a year. The rate stands reduced to 11% per annum in case a borrower offers full collateral security against the loan. Uco's car loans are linked to its BPLR and so the rates will fall from April 1.
People planning to take loans from Uco or, for that matter, any other Tata Motors preferred financiers, for booking Nano would need to submit the application forms to State Bank of India (SBI) which is Tata Motors exclusive partner for managing the entire booking process.
Tata Motors has earlier said that it has already entered into agreements with some 15 banks and NBFCs for the Tata Nano booking loan product. Customers will need to collect application forms from Tata Motors Passenger Car dealerships, SBI and its branches, subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma,World of Titan and Tata Indicom exclusive stores.
sorce: India Times
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.
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
"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
Extending loan for Tata Nano cost's you Rs 1,425 per annam
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.
Those banks that have acquired the preferred financier tags for the Nano are typically charging an interest of 10% a year from customers on the booking price for a maximum three months. They are likely to charge the same rate from borrowers who fail to get the car in the first flush and intend to retain the booking deposit with Tata Motors for the subsequent allotment. But since Tata Motors has decided to pay 8.5% a year for a retention period of 1-2 years, potential Nano customers will have to take the 1.5% per annum differential in their stride. Banks, however, will not charge any processing fee for extending the duration of Nano bookings beyond the first phase.
While Uco Bank and United Bank of India (UBI) have confirmed they will charge 10% interest from customers wishing to retain their Nano booking deposits for the second phase, State Bank of India (SBI), the exclusive booking agent for Nano, is silent on the issue.
A senior Indian Bank official said no decision had been taken in this regard. “We plan to charge 10.5% interest for the initial period of booking. Although, we haven’t thought on the possible rate for extending the Nano booking period, it is unlikely that the rate would get reduced from 10.5%,” the official said.
When contacted, a top Uco Bank executive told ET: “We’ve decided to fix the rate at 10% even for the possible extended period of booking. We may again take the sum upfront from the customer.”
If one considers a 10% interest rate, a potential buyer of the Nano base model would need to shell out an extra Rs 1,425 per annum for extending the booking period besides the booking sum that is fixed at Rs 95,000.
Similarly, in case of the Nano CX, the booking sum would be Rs 1.20 lakh and a potential buyer would need to pay an extra Rs 1,800 a year for extending his booking period. The most expensive Nano model (Nano LX) will entail a fixed Rs 1.4 lakh as booking sum and an extra Rs 2,100 a year for retaining the booking for the second term.
These computations are based on the assumption that Tata Motors will allot Nano in the second phase only after a year from the first allotment. If Tata Motors kicks off the second wave of Nano allotments within a year, then it may not pay the 8.5% interest.
UBI loans for Nano
United Bank of India (UBI) entered into an agreement with Tata Motors on Saturday to finance the booking sum for Nano and subsequently, even the car loan, reports Our Bureau from Kolkata. The bank would provide 100% finance on the booking amount and 90% loan on on-road price to people who get the allotment in the first round, a bank statement said.
The bank will charge 10% interest for the initial advance for booking Nano. It will also charge a processing fee of Rs 1,000 of which Rs 500 will go to Tata Motors, according to a senior UBI official. The loan facility will be available through its 1,450 branches across the country.
Sorce: India Times
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.
Those banks that have acquired the preferred financier tags for the Nano are typically charging an interest of 10% a year from customers on the booking price for a maximum three months. They are likely to charge the same rate from borrowers who fail to get the car in the first flush and intend to retain the booking deposit with Tata Motors for the subsequent allotment. But since Tata Motors has decided to pay 8.5% a year for a retention period of 1-2 years, potential Nano customers will have to take the 1.5% per annum differential in their stride. Banks, however, will not charge any processing fee for extending the duration of Nano bookings beyond the first phase.
While Uco Bank and United Bank of India (UBI) have confirmed they will charge 10% interest from customers wishing to retain their Nano booking deposits for the second phase, State Bank of India (SBI), the exclusive booking agent for Nano, is silent on the issue.
A senior Indian Bank official said no decision had been taken in this regard. “We plan to charge 10.5% interest for the initial period of booking. Although, we haven’t thought on the possible rate for extending the Nano booking period, it is unlikely that the rate would get reduced from 10.5%,” the official said.
When contacted, a top Uco Bank executive told ET: “We’ve decided to fix the rate at 10% even for the possible extended period of booking. We may again take the sum upfront from the customer.”
If one considers a 10% interest rate, a potential buyer of the Nano base model would need to shell out an extra Rs 1,425 per annum for extending the booking period besides the booking sum that is fixed at Rs 95,000.
Similarly, in case of the Nano CX, the booking sum would be Rs 1.20 lakh and a potential buyer would need to pay an extra Rs 1,800 a year for extending his booking period. The most expensive Nano model (Nano LX) will entail a fixed Rs 1.4 lakh as booking sum and an extra Rs 2,100 a year for retaining the booking for the second term.
These computations are based on the assumption that Tata Motors will allot Nano in the second phase only after a year from the first allotment. If Tata Motors kicks off the second wave of Nano allotments within a year, then it may not pay the 8.5% interest.
UBI loans for Nano
United Bank of India (UBI) entered into an agreement with Tata Motors on Saturday to finance the booking sum for Nano and subsequently, even the car loan, reports Our Bureau from Kolkata. The bank would provide 100% finance on the booking amount and 90% loan on on-road price to people who get the allotment in the first round, a bank statement said.
The bank will charge 10% interest for the initial advance for booking Nano. It will also charge a processing fee of Rs 1,000 of which Rs 500 will go to Tata Motors, according to a senior UBI official. The loan facility will be available through its 1,450 branches across the country.
Sorce: India Times
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