This is the second such understanding that Tata Motors has formed with a bank within a month. It had earlier formed an agreement with SBI, the country"s largest commercial bank, for financing the Nano.
"In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Andhra Bank for financing its range of passenger vehicles," the company said in a statement.
As per the agreement, finance facilities would be available at the 1,430 branches of the lender as well as 470 sales touch points of the auto maker, it added.
Tata Motors has earlier said the booking process and other details for the Nano would be announced on March 23.
For the women"s segment, a 0.50pc concession in the rate of interest will be given, it added.