Tatas Likely To Give Nano Purchasers Finance Directly

Mumbai: Tata Motors is exploring the possibility of giving loans for the Nano either via Tata Motors Finance (TMFL), wholly owned subsidiary, or existing financing channels. This goes against the industry practice where hire-purchase deals are signed by dealers and not by manufacturers. Under its distribution strategy for the small car, Tata Motors has initiated discussions with leading vehicle loan providers in the country. This is in line with the existing financing options with a down payment and the rest in installments. The group''s priority is to provide financial support through TMFL. The Tatas are eyeing at forging an exclusive alliance for the Nano. Tata Motors does not want to share any information on financing of Nano at this stage. The profits from financing of the car will be lower than from normal cars. As the Nano is being targeted for the masses, the Tatas will offer financing options which will make them more affordable.