Tata Nano: Price, Booking Process & Bank Loan Interest Rate

The booking of the Tata Nano opens tomorrow on April 9th and will continue up to the end of day on April 25, 2009. Tata Motors has entered into agreements with 18 preferred banks/NBFCs to enable prospective customers to get finance and facilitate booking of the car.

The sale of application forms has already started from April 1, to a very encouraging response. The Tata Nano website has recorded over 50 million (5 crore) hits, including over 20 million (2 crore) hits in the fortnight since the launch on March 23, 2009. The forms are available at a price of Rs.300 (for online booking Rs.200). The forms can be bought at over 30,000 locations in about 1,000 cities through Tata Motors Passenger Car dealerships, State Bank of India and its branches, its subsidiaries and associates, other preferred financiers, and outlets of Westside, Croma, ‘World of Titan’ and Tata Indicom exclusive stores. The forms come with a range of offers from select associate Tata Group companies up to Rs.1100.

Customers can either pay the entire booking amount -- of Rs.95,000 (Tata Nano Std.), Rs.120,000 (Tata Nano CX), and Rs.140,000 (Tata Nano LX) -- themselves or seek financing of the booking amount.

Booking amount financing available from Rs.2850
The company’s partnership with the preferred financing partners has enabled attractive options of financing the booking amount, which start from a low of Rs.2850. The details are as follows:

Preferred banks/NBFCs	Financing of booking amount of Rs.95000 for the Tata Nano Std. version
State Bank of India	Rs. 2,999
Canara Bank	Rs. 2,850
Tata Motor Finance	Rs. 3,199
Corporation Bank	Rs. 2,999
Central Bank of India	Rs. 3,256
Indian bank	Rs. 3,343
State Bank of Tranvancore	Rs. 2,999
State Bank of Bikaner and Jaipur	Rs. 2,999
State Bank of Indore	Rs. 3,516
State Bank of Patiala	Rs. 2,999
State Bank of Hyderabad	Rs. 2,999
State Bank of Mysore	Rs. 2,999
ICICI Bank Ltd.	Rs. 2,999
Union Bank of India	Rs. 2,950
United Bank of India	Rs. 3,137
Punjab National Bank	Rs. 3,733
UCO Bank	Rs. 2,975
The Federal Bank Ltd.	Rs. 4,110
Corporation Bank	Rs. 2,999

Customers can submit their application forms to their chosen financier. The financier will, on their behalf, submit their application forms to the State Bank of India, which is managing the booking process. Those who are themselves paying the entire booking amount can submit their application forms directly to State Bank of India through 1,350 notified branches in 850 cites, and also at Tata Motors Passenger Car dealerships, Westside and Croma outlets. Option to submit bookings online is available at tatanano.com.

Retail auto loan interest rates for the Tata Nano
Post the successful allotment of the bookings, customers can convert their booking loan into a retail auto loan for the Tata Nano at very attractive rates with the preferred financiers:

Preferred banks/NBFCs	Interest rate post Allotment
State Bank of India	11.75%
Canara Bank	9.5-11%
Tata Motor Finance	12 – 13%
Corporation Bank	11-11.5%
Central Bank of India	9.5-11%
Indian bank	11%
State Bank of Tranvancore	11.75-12%
State Bank of Bikaner and Jaipur	11.75%
State Bank of Indore	11.50%
State Bank of Patiala	11.50 – 12%
State Bank of Hyderabad	11.75%
State Bank of Mysore	11.25-11.75%
ICICI Bank Ltd.	13.00%
Union Bank of India	11-11.25%
United Bank of India	9%
Punjab National Bank	11%
UCO Bank	11 – 11.50%
The Federal Bank Ltd.	14.25%
Corporation Bank	11-11.5%

Insurance premium for the Tata Nano
Tata Motors has also entered into agreements with five partner insurance companies to offer comprehensive insurance, under the ‘Tata Motors Insurance’ banner, for the Tata Nano at a rate of just 2.76% of the ex-showroom price of the car, the most competitive in the industry. In New Delhi, the insurance premiums will be as follows:

	Nano	Nano CX	Nano LX
Ex-showroom price New Delhi (Rs.)	123360	148360	172360
Insurance premium (Rs.)	3468	3959	4431

The empanelled insurance companies are National Insurance Co Ltd, ICICI Lombard General Insurance Co Ltd, Royal Sundaram Alliance General Insurance Co Ltd, United India Insurance Co Ltd and HDFC Ergo General Insurance.

Deliveries
Within 60 days of the closure of bookings on April 25th , 2009, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerised random selection procedure. These 100,000 allotments will be price protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for the customers. Deliveries will commence from July 2009.Applicants have the option to retain their booking deposit, even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for retention period between one year to two year and 8.75% for a retention period of more than 2 years. Allotment of retainees will be simultaneously communicated, along with the allotment of the first 100,000 cars.

source: Tata Motors India