Buyers can seek Nano loan from any bank: SBI

Buyers can seek loans from any bank to buy Tata Motors' Nano car despite the company signing a deal with State Bank of India (SBI), SBI Chairman O P Bhatt said today.

Buyers can seek loans from any bank to buy Tata Motors' Nano car despite the company signing a deal with State Bank of India (SBI), SBI Chairman O P Bhatt said on Sunday.

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"People can seek loans for the Nano from any other bank as well. The tie-up is meant to manage all booking points, including distribution and collection of applications," Bhatt told reporters in Jamshedpur on the sidelines of a programme at XLRI last night.

According to him, the deal was signed as it is not possible for any company to go to hundreds of banks to handle such a huge distribution and collection of applications.

Though most of the application collection would be done by SBI, others could also do the same, Bhatt said. Bhatt said SBI would charge 10 per cent interest on car loans to buy the Nano in the first year and later the rate would be the same as other automobile loans.