Tata Motors commercial vehicle customers will receive 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. The financing option will be offered at all the Tata Motors showrooms and IOB branches throughout the country.
Under the agreement, the bank will ask Tata clients to pay processing charges and will not require any collateral guarantee up to a value of $225,000.
IOB is a public sector bank that has a range of activities which covers multiple sectors, including the automotive financial services one.
Tata Motors has seen its global operations register a hefty increase, as the group’s sales increased by 39 percent last month, as compared to the same month of last year. The group managed to sell a total of 101,712 vehicles in March.
Tata’s commercial vehicles business surged by 53 percent to 47,936 units, while passenger vehicle sales rose by 28 percent, reaching 53,776 units. The company’s Jaguar Land Rover premium division, which was acquired from Ford in 2008, registered a 43 percent sales increase last month, managing to reach a total volume of 23,538 vehicles.
Tata Motors is also planing to enter the military sector, as the carmaker has unveiled a mine-proof vehicle in February. This is a multi purpose army vehicle, being able to serve as a command post, troop carrier or battle field ambulance.