General Motors India has tapped State Bank of India to provide wholesale and retail financing to buyers of GM vehicles. The announcement comes on the heels of a move by GM two weeks ago to launch a joint venture in India with Chinese partner Shanghai Automotive Industries Corp.
SBI is the largest bank in India, with 12,150 branches throughout the country. In October, SBI financed 22,000 of the 132,615 cars sold, according to published reports — a 17% share.
And last month, GMI sold 7,118 vehicles, up 65% from 4,307 units sold in November 2008. In all, Indian car sales hit 133,687 for the month — a six-year high.
Here are some of the auto loan criteria listed on SBI’s web site:
• Used cars may be financed if they are less than five years old
• Buyers must be between the ages of 21 and 65, with net annual income of at least Rs. 100,000 ($2,130)
• New-car loans are capped at 2.5 times net annual income (but no specific rupee figure)
• Salaried new-car customers may finance for 84 months; self-employed and professionals for 60 months
• Used-car loan terms are capped at 84 months from the date of original purchase of the vehicle
• Prepayment fee: 2% of the amount prepaid
