New Delhi: Automotive major Tata Motors on Tuesday announced that it has signed a retail finance memorandum of understanding with the Bank of India (BOI) to provide financing options to all of its passenger vehicle customers.
As part of the combination, BOI will provide loans to Tata Motors customers at interest rates starting at 6.85%. This system will offer a maximum financing of 90% on the total cost of the vehicle (Ex-showroom pricing + Insurance + Registration). Customers also get a special EMI option starting at INR 1502 per lakh over a 7 year repayment period.
The Bank also offers certain functionalities to Tata Motors customers. They include a zero processing fee until March 31, 2022, a FOIR (Fixed Obligation to Income Ratio) base which caps the current liability of the client requesting a loan at 70% regardless of income and an eligibility of the loan amount plus raised.
These offers will be applicable on the New Forever line of ICE cars and SUVs as well as electric vehicles for personal segment buyers across the country, the company said.
Rajan Amba, Vice President of Sales, Marketing and Customer Service, Passenger Vehicle Business Unit, Tata Motors, said: Working with several financial partners across India to make car ownership accessible, as well as a hassle-free process for customers adding to the celebrations of this festive season.
Rajesh Ingle, Managing Director, Retail, BOI, said: “We have reoriented banking services with a focus on retail customers by designing products to suit their needs. Our car loan with the lowest interest rate is one such product. The bank’s partnership with Tata Motors will be a win-win for customers in the sense that they will be able to access the best personal mobility solutions with the best financing option from Bank of India ”.
Customers can contact their nearest Tata Motors dealer or Bank of India branch to take advantage of these offers, Tata Motors said.