Banks Loan Rules for Nano

Banks, which have made arrangements with Tata Motors for financing the Nano, are keeping the minimum eligibility criteria easy to ensure that the low-middle income salaried class remains attracted to the Nano loan schemes.

To start with, United Bank of India (UBI) has indicated it will offer loans for Nano to individuals with a minimum monthly income as low as Rs 5,000. It’s a different matter that so far people with gross monthly salaries in the range of Rs 25,000-30,000 have largely shown booking interest.

“We have kept the minimum eligibility easy as we would like to project us as a people’s bank. This will fit with the Tata Motors’ people’s car,” said UBI CMD SC Gupta.

By comparison, the likes of Canara Bank and Indian Bank have kept the eligibility norms a wee bit tighter. Canara Bank, for instance, says it will offer Nano loans to individuals with a minimum annual income of Rs 1.50 lakh a year, while, Indian Bank has kept the threshold at Rs 1.80 lakh per annum. Individuals in the age group of 21 to 65 are eligible for bank finance for Nano.

However, merely meeting such criteria will not guarantee a Nano customer a car loan from banks even if the customer gets a Nano allotted in his or her name. The customer will need a minimum net take home salary that is 60% of the gross salary after meeting all their monthly instalment payments, including payments for provident funds.

Source:- Economictimes

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