M&M ties up with PNB, UCO Bank for vehicle finance
16 September 2009
Utility vehicle major Mahindra & Mahindra (M&M) has entered into separate agreements with Punjab National Bank and UCO Bank for vehicle finance.
Under the MoU, PNB and UCO Bank will be preferred financiers for Mahindra's vehicles in both the commercial and passenger segments, M&M said in a statement.
"A low rate of interest is just one of the benefits of opting from the PNB as a preferred financier. The bank's network of 4,685 branches will also help us further strengthen our presence in India's hinterland," M&M senior vice president (sales and customer care) automotive sector Arun Malhotra said.
Under the terms of the MoU, customers can avail loans of up to 90 per cent of any commercial vehicle's on-road price with a tenure of five years at a rate of one per cent below prime lending rate (BPLR), the company said.
For passenger vehicles, loans will be available at a rate of 10.5 per cent (for up to three years) and 11 per cent (for more than three years). The extent of the loan will be up to 90 per cent of the vehicle's on-road price for a tenure of seven years, it added.
UCO bank will make available loans of up to 85 per cent of the vehicle's on-road price with a tenure of five years, the release said.
"UCO Bank's vast network of over 2,000 branches will also help us to further strengthen our presence in India's hinterland," Malhotra said.