Only SBI loans for Nano cars

[HappyWheels]

Read this piece of new from TOI online:

Source: Only SBI loans for Nano cars-India Business-Business-The Times of India

******

"AHMEDABAD: Tata Motors and State Bank of India (SBI) are forging a first-of-its-kind alliance for extending car loans to buyers for the world's cheap
est car - Nano.

As per the unique understanding, only SBI will provide car loan facility to Nano buyer across the country. Only SBI cheques will be accepted by the Nano dealers. Not only that, anyone who wants to buy without a loan also will have to issue demand draft of SBI in fa-vour of Tata Motors.

Well-placed sources said the companies are in the process of finalising the terms and conditions of the alliance but the formal announcement is expected to be made just before the first Nano rolls out from either Pantnagar or Pune.

Tata Motors wants to utilise the vast network of SBI and its seven associate banks. SBI has branch network of around 11,000 branches. Besides, its seven associate banks have a combined network of 2,000 branches.

As the Nano is going to be a common man's car, SBI with its associates was thought to be the best fit for a product that has to get customers from rural India.

After taking its decision of shifting its plant from Singur to Sanand, the Tata Motors has also enhanced its manufacturing capacity from 3 lakh car in a year to 5 lakh car a year.

As per the promise given by the Tatas the Nano car will be rolled out by the last quarter of this year. The first cars would roll out of the Tata plants in Pantnagar, Uttarakhand and Pune in Maharashtra."

*******

What dynamics does this serve? Or is this just some sort of gimmick?

[Raccoon]

This is absurd.... monopolistic attitude! If this was in the US, I'm sure it would have seen lawsuits. Not sure how the laws in India deal with such things...

[amtak]

Why can't the company do that? I am sure that they have a right to do so. I see a very strong Govt and private sector bonding happening here.

Imagine if the salary account of TATA's go to SBI!

[theMAG]

This is primarily a symbolic gesture, I feel. India's largest bank/ bank footprint et all.

[Gregory]

This cant be true! tata's would never do something like this

[Raccoon]

Originally Posted by amtak

Why can't the company do that? I am sure that they have a right to do so. I see a very strong Govt and private sector bonding happening here.

Imagine if the salary account of TATA's go to SBI!

Why cant they do that??? I'm surprised we still havent woken up to such practices...!!! You should have a look at the laws in US, and the reasons they are there, to answer that question.

For sure, we still have a long way to before most of us wake up to these things...

And whats this Govt and pvt sector bonding?? All this so-called bonding is at best a sham to make more $$$ in whichever way possible...

[RAC]

Don't know how it may work out finally, but I would like to mention the affairs at SBI in my locality.

As of now, we need to go in the morning to take a token number and come back sometime in the afternoon or evening to deposit or withdraw money.
The waiting time is minimum 4 hours unless you are there before the shutters are open and run in as soon as they are opened.

The waiting times are frustratingly long. Day before yesterday when i went to the bank, account holders were actually walking out of the bank and I heard the teller say that there were around 400 members waiting, so they had stopped issuing the tokens.

[nitrous]

Its a good move. Now,SBI will lend money to Tata with a bigger smile.

[amtak]

Originally Posted by Raccoon

Why cant they do that??? I'm surprised we still havent woken up to such practices...!!! You should have a look at the laws in US, and the reasons they are there, to answer that question.

For sure, we still have a long way to before most of us wake up to these things...

And whats this Govt and pvt sector bonding?? All this so-called bonding is at best a sham to make more $$$ in whichever way possible...

I guess if we copy everything like the USA, we would soon end up like them asking for money around the globe. Every company has a preferred bank through which their cars are sold. If you observe carefully, TATA has not even involved TATA Finance, I am sure they have a valid reason to do so. TATA knows it well that if there are any defaulters, SBI can deal with them in a much better manner than any other bank. Apart from this, Since the key focus is on Semi Urban population, SBI is the bank to go with. Hardly would you find some villager talking about having an account with ICICI or Citi. Access to large branches mean, more people who would go to their nearest branch to take loans and they very well know the procedures there.

[sammyboy]

Tata is doing to Nano what Apple did to the IPhone with AT&T . Though for smaller towns specially people will be more comfortable with Govt banks so it can have a bigger reach. Cant really judge if its a smart move or a dumb one yet.

[motorheadinc]

only time will tell what this partnership will yield.

getting a draft made involve some charges so that may be shared between the two. :P

[abhinav.gupta88]

Thats pretty bad if its true.
This will give SBI a clear advantage and monopoly to give the deals and tax rates.

This is a news report but any confirmation regarding the same from Tata?

[harry10]

I dont think this will happen. that restricts peoples choices and not many gonna like it. If implemented Tata's have to withdraw this sooner or later!

[bblost]

The nano will maybe cost about 1.5 lakhs on road.

If you dont want SBI Car loan then simply take a personal loan from any other bank.
I dont think the EMI values will be very different for such a low sum of money.

EMI for 1.5 lakhs for 3 years:
at 8% Rs 4381
at 14% Rs 4846

Calculated using the EMI calculator in hsbc.co.in

[Spitfire]

Originally Posted by RAC

Don't know how it may work out finally, but I would like to mention the affairs at SBI in my locality.

As of now, we need to go in the morning to take a token number and come back sometime in the afternoon or evening to deposit or withdraw money.
The waiting time is minimum 4 hours unless you are there before the shutters are open and run in as soon as they are opened.

The waiting times are frustratingly long. Day before yesterday when i went to the bank, account holders were actually walking out of the bank and I heard the teller say that there were around 400 members waiting, so they had stopped issuing the tokens.

Why dont you get a Debit card from them?