Mahindra Reva Joins With SBI To Offer Cheap Loans

Published: Tuesday, January 24, 2012, 17:13 [IST]

Mahindra Reva has started the groundwork needed to promote its cars in a big way by roping in State Bank of India (SBI) as its vehicle finance partner. The electric carmaker, which is part of Mahindra and Mahindra, will launch its latest electric car, Reva NXR, in the later half of 2012.

Mahindra and State Bank of India have signed an agreement according to which, India"s leading bank will provide car loans up to 85 per cent of the on-road value of Mahindra Reva Electric Vehicles for a duration of up to seven years at an interest rate of 12 per cent. This information was provided by SBI Mumbai CGM R N Mehra.

Customers will have to pay an EMI of Rs.1,765 per lakh at the interest rates offered by SBI. SBI has stated customers can repay the entire loan within the loan period without any pre-payment charges. Mahindra Reva is hopeful such attractive schemes will help attract more buyers.

Mahindra Reva currently sells only one model, the REVA which is priced between Rs.2.89 lakhs and Rs.3.52 lakhs (ex-showroom price Delhi). The new Reva NXR is expected to be priced slightly more than the current model. Attractive and Cheap car loans are the only way Reva can boost its sales.

Reva does not have too many showrooms in the country while SBI has a huge network of banks across the length and breadth of the country. Mahindra Reva can utilise this network to provide sufficient publicity to its cars.