SBI may charge 14 per cent interest on Nano loans

The finance scheme being worked out for the Tata Nano may entail potential customers paying 14 per cent interest on 5-year loans. Tata Motors has tied up with the State Bank of India (SBI) to finance the Nano and is in talks with the bank to finalise a loan scheme. The SBI is expected to finance 70 per cent of the price of the car at an interest rate of 14 – 14.5 per cent for a tenure of up to five years. Tata Motors executives have been meeting with managers of different SBI branches across the country to decide on the branches and the method of rolling out loans. A Tata Motors spokesperson said that at this point, any information on interest rates and loans is purely speculative and that booking details will be made available on the 23rd of March, the date of the Nano’s launch.

DriveInside.com