SBI, Maruti in car financing tie-up

Hyderabad: State Bank of India (SBI) and Maruti Udyog have announced a joint initiative aimed at making car finance affordable to middle- and lower-middle-class customers.

Customers will now have transparent car finance involving no hidden charges and pre-closure penalties, and also get the dealers' margins, says SBI chief general manager S K Bhattacharya. "It will help both the bank and Maruti to aggressively tap the Andhra Pradesh market."

SBI offers finance facility even for lifetime tax, insurance and accessories of the vehicle. Further, SBI Life Insurance will offer life insurance cover to the customers at a concessional premium. "Even this premium amount will be financed by SBI and this works out to nearly 100-per cent finance on ex-showroom price of the car," he says.

Stating that the lowest EMI will enable most of the two-wheeler owners realise their dreams of owing a car, Bhattacharya says the EMI on car finance works out to only Rs 1,712 per lakh for a seven-year tenure and around Rs 1,500 for two-wheelers.