Auto India, Car India

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Now, the state bank of India has fixed the interest rates for new car loans. The loan is available at 10 percent of interest rate for the one year tenure. The farmers and customers availing car loans from 23rd February 2009 to 31st May 2009 will applicable for the new rates. After the completion of the fixed period, the car loan will be available once again according to the card rates offered on the sanctioning date.

The bank press release said -

“SBI calculates interest on loans on daily outstanding balance, which reduces the interest burden on the borrower as against the monthly outstanding balance basis or the flat rate basis as charged by few others.”

Tata Motors has accepted the move gladly and made commentary statement that such kind of step will assist in increase the car sales in the country.

A Tata Motors’ spokesperson said -

“We welcome the move. This should help the automobile industry to boost up sales. We hope other banks will also follow suit.”

Such measures had been already taken by SBI for home loans as well as small and medium scale industry loans. Tata Nano is ready to launch from the Pantnagar manufacturing unit of Tata Motor in Uttrakhand and the only one booking agent for the car is State Bank of India.