"This is for the first time that a manufacturer will charge for an application form. However, it will be refunded if an application is rejected," said a senior executive from a public sector bank.
Bookings are expected to start by the last week of March. The forms, say sources, will be collected through various channels but transferred to the State Bank of India [ Get Quote ]. "All the forms and the collected money will be transferred to SBI, where they will be processed, and loans will be given through various banks within 90 days," said a source at a public sector bank.
"This is being done to manage the applications efficiently, as Tata Motors is expecting a large amount of bookings," the source said. When asked, an SBI official said he could not share any details on the subject.
A senior executive with a large bank said the interest rates could be cheaper than the existing auto loan rates. So far, SBI and Punjab National Bank [ Get Quote ] have announced tie-ups with Tata Motors, and others like Bank of India, Union Bank of India [ Get Quote ] and Bank of Baroda [ Get Quote ] are expected to follow.
"We are in talks with various public sector banks to provide the widest possible range of financing options to the customers of Nano," said a source.