Mumbai: Bank of India, which is not one of the preferred lenders for Tata’s Nano, has come out with a moratorium scheme for auto loans.
This scheme will ensure that its customers don’t go to other banks for loans for the Nano, said a senior official from the bank.
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Under the scheme, there is no upfront recovery of interest. For three months the borrower does not have to pay either interest or principal on the loan.
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The bank is charging a floating rate of interest of 10.25 per cent with a repayment period of less than 36 months and 10.75 per cent between three and six years.
For the booking amount, the charge is 12 per cent fixed rate of interest and it is available only till delivery of the vehicle.
State Bank eases eligibility norms for Nano loans
Booking loan may be for a short period of 90 days only and delivery period as declared by Tata Motors, said a press release from the bank.
The loan for the vehicle is for a maximum period of six years, and the rate is between 10.25 per cent and 10.75 per cent.
According to the official, while the charges on the booking amount may not be competitive, the charges on the vehicle loan, once the customer gets delivery are competitive. “In the long term our customers will benefit,” he said.
