Tata Motors on Monday signed a memorandum of understanding (MoU) with Karnataka Bank to facilitate retail finance solutions for its customers to boost sales.

Under the said scheme, customers can avail a variety of facility on their future vehicle purchase available across 857 branches of Karnataka Bank which include 199 semi-urban and 67 rural branches.

Loans up to 85 per cent loans on the on-road pricing of a Tata Motors vehicle with an interest rate linked to External Benchmark Lending Rate (EBLR), which will be updated on the bank’s website periodically, Tata Motors said in a release.

The tenure of this loan is set at a maximum time-frame of up to seven years or 84 months.

of up to 85 per cent on the on-road pricing of a Tata Motors vehicle are available with an interest rate linked to external benchmark lending rate which will be updated on the bank’s website periodically.

“This is in alignment with our constant endeavour to make safe personal mobility solutions more accessible to individuals and families, while contributing to the joy of their overall ownership experience,” said Rajan Amba, Vice President for sales, marketing and customer service at Tata Motors.

We are elated to be partnering with Karnataka Bank to introduce attractive finance schemes for our customers. This is in alignment with our constant endeavour to make safe personal mobility solutions more accessible to individuals and families.

“We hope that these offers will boost customer morale and make the process of purchasing a car more convenient for all, ” said Rajan Amba, Vice President for sales and marketing at passenger vehicle business unit of Tata Motors.

The scheme can also be availed by customers who are agriculturists and are owners of farming lands as well as by Non Resident Indians (NRIs), among others, the automaker said in the release.

This partnership with Tata Motors will be another milestone in our efforts to meet the aspirations of our esteemed customers .Tata Motors will now offer preferred financier status to our bank for financing acquisition of four wheelers manufactured by the company,” said Mahabaleshwara M S, Managing Director & CEO of Karnataka Bank.

The proposition becomes even more attractive for the customer with Karnataka Bank now offering car loans through an end-to-end digital platform developed in house for existing as well as new customers, he said.

“I am sure this partnership will turn out to be a win-win arrangement for both the brands in their future growth journey,” he added.