UTI Bank launches car loans in association with MUL

New Delhi, Mar 13 (UNI) UTI Bank has entered into four-wheeler financing through an alliance with Maruti Udyog Ltd (MUL), wherein the bank will be utilising Maruti's extensive dealer network and its service mark Maruti Finance for marketing its car loans with a minimum loan of one lakh rupees.

From the MUL side it will jointly conduct campaigns for customers of UTI Bank.

''The launch of our car loans will essentially boost our existing portfolio of retail asset products. We are pleased to tie up with Maruti Udyog, whose extensive dealer network will help the bank to effectively promote the loan offering and scale up the same,'' UTI Bank Chairman and Managing Director P J Nayak said.

He said the minimum and maximum tenure would be one and seven years respectively. Maximum Loan To Value (LTV) would be 60-85 per cent as per LTV grid and repayment mode would be post dated cheques (PDCs), standing instructions for UTI Bank account holders or electronic clearing systems.

The eligible borrowers would be salaried and self-employed individuals, Dr Nayak said.

''With UTI Bank, the important link of easy availability of car finance is taken care of UTI Bank's strengths in smaller cities with innovative financing products will help us reach our dream to motorise India,'' MUL Managing Director Jagdish Khattar said.

The bank is currently present in eight centres at 16 dealership points and hopes to extend the offering to 25 cities and 75 dealerships by end of this month.

UNI