State Bank signs Memorandum of Understanding with Honda Siel Cars

State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with Honda Siel Cars India Ltd to provide auto retail financing to prospective customers.

SBI will be the preferred financier for the entire range of vehicles marketed by Honda Siel Cars in India, a press release issued here today stated.

The agreement was signed by Honda Siel Cars' director (marketing) Tatsuya Natsume and SBI's chief general manager, personal banking business unit, P Nanda Kumaran.

The MoU aims at targeting high-end customers who will be availing of car loans from SBI above Rs5 lakh. SBI has come out with a special scheme called SBI Advantage Car Loan Scheme for this niche segment. This scheme is applicable to individuals—salaried, professionals, self-employed, businessmen and proprietary/partnership firms—who are income tax assesses and whose income/net profit or gross taxable income is Rs2.50 lakh and above, the release said.

SBI gives 85% of on-road price of the car as loan with a repayment period of 7 years as maximum applicable to all categories of customers. Processing fee is only 0.50% of the loan amount.

The USP of the product is that the sanctioning of loans will be on a priority basis, the release said.