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Financing the purchase of your Tata Nano

You want to buy the Tata Nano, but don’t have the money to make the initial down payment. No need to worry – many financiers have lined up to extend you credit for the Nano.

Read on to find out which banks are offering a loan for the Nano, the schemes they are offering, and the details of the interest rates charged.

Of course you are excited about the Tata Nano – after all, it is beautiful, useful and affordable!

The advance booking for the Tata Nano starts from 9th April 2009, and closes on 25th April 2009.

Here are all the details you would need about financing the purchase of your Nano.

How much money is needed for booking?

Although the final price of Nano would depend on the city in which you live, the amount for booking the Nano is uniform across India. The booking amount depends only on the model (or variant) of Nano that you want to book.

The booking amounts are:

Variant Price
Nano Rs. 95,000
Nano CX Rs. 1,20,000
Nano LX Rs. 1,40,000

It is quite understandable if you can not pay this amount upfront in one go. Here’s where the banks or financiers come into play.

The Financiers for Nano

Tata Motors has tied up with 15 banks or NBFCs which are the preferred financiers for the Nano. If you opt for this option, you would need to pay only Rs. 3,000 to Rs. 3,500 upfront – the remaining booking amount would be paid by the financier.

The loans for booking the Tata Nano are available from the following financial institutions:

  1. State Bank of India (SBI)
  2. Tata Motor Finance
  3. State Bank of Patiala
  4. ICICI Bank
  5. State Bank of Travancore
  6. State Bank of Mysore
  7. State Bank of Hyderabad
  8. State Bank of Bikaner and Jaipur (SBBJ)
  9. State Bank of Indore
  10. Axis Bank
  11. Punjab National Bank (PNB)
  12. Federal Bank
  13. Corporation Bank
  14. Indian Bank
  15. Central Bank of India (SBI)

Apart from these, many other banks are also offering financing for the Tata Nano. Some of these banks are:

  • Canara Bank
  • Bank of India (BoI)
  • UCO Bank
  • United Bank of India

Details of the Finance Schemes

Here are the details of some of the financing schemes. (Please note that the details of the schemes can change from time to time. Therefore, please check with the bank for the latest information before making any financing decision).

State Bank of India (SBI)

Nano advance booking loan

  • Full booking amount to be financed
  • Loan available to salaried or self-employed people
  • Initial payment of Rs. 2,999
  • Interest rate of 10%
  • Maximum loan term of 90 days

Car Loan (post allotment)

  • Floating rate of 11.75% for loans up to 5 years
  • Floating rate of 12% for loans between 5 and 7 years
  • Illustrative Equated Monthly Installment (EMI): A loan of Rs1.2 Lakhs for 3 years will have an EMI of Rs. 3,971.

Punjab National Bank (PNB)

  • Loans for upto 90% of the on-road price of the car
  • Loan tenure upto seven years
  • Interest rate of 10.5% to 11%

Corporation Bank

  • Interest rate of 11.75%

Central Bank of India

  • Interest rate of 10.5% for loan tenure of 36 months
  • Interest rate of 11.5% for loan tenure of over 36 months

Canara Bank

  • Fixed rate of interest of 9.5% for the first year, 10.5% for the second and third years, and 11.5% for the fourth year and beyond

Bank Of India (BoI)

  • 3 month moratorium – No interest or principal payment for 3 months
  • 12% fixed rate of interest till delivery of car (for the loan of booking amount)
  • Booking loan for a duration of 90 days
  • After delivery of the car, a floating rate of interest of 10.25% for loan tenure less than 36 months (3 years)
  • After delivery of the car, a floating rate of interest of 10.75% for loan tenure between 3 to 6 years

UCO Bank

  • Full or partial loans for the booking amount
  • Interest rate of 10%
  • Conversion of the loan into auto loan (after delivery of the car) at the then-prevailing interest rates

United Bank of India

  • 10% rate of interest for a loan for the booking amount
  • Booking loan can be converted into a car loan after allotment
  • Rate of interest 9% for car loan
  • Maximum loan tenure of 6 years (72 months)
  • Indicative EMI: For a loan of Rs.1 Lakh, EMI would be Rs.1,799.

Where can the booking for Tata Nano be done?

The application forms are available at over 30,000 locations in about 1,000 cities through:

  • Tata Motors dealerships
  • Branches of State Bank of India (SBI) and its subsidiaries
  • Branches of the other preferred financiers
  • Westside, Croma, ‘World of Titan’ and Tata Indicom exclusive stores

Find a booking center for Tata Nano here.

Booking can also be done online at

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