Through this tie-up, a cash credit facility ranging between Rs 25-lakh-Rs 5-crore will be made available to Bajaj Auto's dealers who predominantly fall in the small and medium enterprise (SME) category for State Bank of India.
The loans will be sanctioned and disbursed subject to necessary approvals at a competitive interest rate, the company said in a statement.
The inventory finance innovation comes on the back of a spectacular sales performance by the company which recorded its highest-ever sales of more than 2.4-million motor-cycles during 2010-2011.
With ambitious growth plans this year as well, higher inventories at the dealer level as well as secondary network are expected during this fiscal. Higher inventories would mean higher working capital requirements at the dealer level, the company said.