Mahindra and Mahindra Ltd. (M&M), one among the largest automobile manufacturer of the country, signed a MoU with the State Bank of Travancore (SBT) for vehicle finance. As per the MoU, SBT will be a chosen financier for both commercial and passenger vehicles of Mahindra.
"We are extremely pleased to partner with State Bank of Travancore as it will provide our customers with additional retail finance options for both commercial vehicles and passenger vehicles. A low rate of interest is just one of the benefits of opting for the State Bank of Travancore as a preferred financier. The bank's vast national network of over 726 branches and 460 ATMs will also help us make further inroads in upcountry markets where we already have a strong customer base," said Mr. Arun Malhotra, Senior Vice President, Sales and Customer Care, Automotive Sector, Mahindra & Mahindra Ltd.
For commercial customers, the bank will offer loan of up to 85% of the on road price of the vehicle, with a tenure of 7 years at 11.25% p.a., and for passenger vehicles the loan offered will be up to 85% of the on road price of the vehicle with a tenure of up to 5 years at 8% in the first year and 10% in the second and third year.
The largest associate of State Bank of India, State Bank of Travancore is 100% government owned.