Tata Motors Partners with United Bank of India

Partnerships between car companies and banks from all over the world aren't something new, mostly because auto producers can this way attract new customers who are looking for financing without their very own financing division. And this is what Tata Motors tries to do through the partnership with the United Bank of India.

The Indian carmaker is thus aiming to attract more buyers for its commercial vehicles, as the financing services will be available through all 1,555 branches of the bank and commercial vehicle dealerships of Tata Motors.

"With this tie-up, the United Bank of India will offer loans for Tata Motors’ commercial vehicles to both Existing and New Transport operators up to 90% of the cost of vehicle (including chassis, body, insurance and registration) , for a tenure ranging up to 5 years, at competitive rates. No collateral security will be required on funding up to Rs 10 lakhs for cases done under CGTSME," the Indian carmaker mentioned in a statement for the press.

This is the second time this year when Tata Motors signs a deal to support the adoption of commercial vehicles across its domestic market. Back in April, Tata joined forces with the Indian Overseas Bank (IOV) to offer a vehicle financing option for its commercial products.

Tata Motors commercial vehicle customers are now receiving loans from IOB for up to 85 percent of the total cost (including the cost of the vehicle, insurance and taxes) at a rate of 10 percent up to $56,000 and 10.5 percent above this value. Just like in today's case, the financing option is offered at all the Tata Motors showrooms and IOB branches throughout the country.