Tata Nano to be launched: Some Loan specific details
Ratan Tata will be marking a historic event in India, and its motor industry.
I have compiled a few information which should assist any Nano buyer.
Loans from Bank:
Nano is targeted at a group where most of the people will be choosing for a loan that putting cash on the table.
SBI group may be the leading lender for Tata’s Nano, but it may not be offering the cheapest interest rates. SBI and associated banks may be offering loans for Tata Nano at the prevaling interest rates, at around 11.5 – 12 %. At the same time, taking a loan from BoI (Bank of India) may be much affordable, since loans interest rates for the Nano’s perspective customers of Nano would be around 12.5 %.
If you are looking at the cheapest loans then head directly to PNB (Punjab National Bank) which may give you a loan at an interest rate which will be an industry beating 10.5 to 11%
In all probablity, the loans would be offered on reducing balance method, so effectively the interest burden will go down as and when you start paying the bank back. However, this is not confirmed and is speculated.
As against was mentioned in my blog earlier, the banks may just offer loan upto 75% and not 50% of total for a Nano.