Goel: Fund support

Calcutta, March 27: Uco Bank will offer loans for the Nano at an interest rate of 10 per cent.

“We will sign an agreement with Tata Motors on Monday,” Uco Bank chairman and managing director S.K. Goel said.

The bank is one of the 15 banks/NBFCs that will offer loans to buy the Rs 1-lakh car.

Tata Motors has already entered into an agreement with the State Bank of India to manage the booking process as the sole agent.

Buyers will get finance for the booking amount — Rs 95,000 for the entry-level Nano model — at an interest rate of 10 per cent, Goel said. This interest rate will be effective for the first three months till the allotment of the car.

“Buyers of the Tata Nano do not need to take the entire amount as loan if they can partly finance themselves,” Goel said. Uco will send the cheque to Tata Motors. Cheques of those not allotted a car will be returned to the bank.

After an applicant gets a Nano, the loan will be converted into an auto loan at prevailing rates. At present, Uco Bank offers loans for cars at 11.5 per cent interest.

The bank today signed a car-financing pact with Maruti Suzuki. “We will also tap other car makers such as Bajaj, Mahindra & Mahindra and Hyundai,” Goel said.