Indian Bank ties up with TVS for vehicle finance

Public sector lender Indian Bank today said it has entered into an agreement with TVS Motor Company for financing the company's vehicles.

"The MoU will help to bring three wheeler drivers into structured banking and enhance Bank's collateral free lending," Indian Bank Chairman T M Bhasin told reporters here.

Through this tie-up with TVS Motor Company, the Bank's loan book by March 2011 would increase to Rs 10 crore and its expected to be touch Rs 75 crore during the next financial year.

"Besides Indian Bank we are having tie-up with other public sector undertaking bank .. But this will highly benefit the borrower as they (Indian Bank) offers them to pay about 15 per cent on the on-road price of the vehicle which is comparatively lower.." TVS Motor Company Vice-President (Sales and Service) Three Wheeler division K Srinivasan said.

Currently, the service available in all the 1,828 branches all over India of these 776 branches are in Tamil Nadu. TVS Motor Company also has about 22 dealers with 300 service station in the State, he added.