Mahindra & Mahindra is presently ‘banking’ on the State Bank of India. The automaker feels the need to get some financial backing behind it to carry it through the present rumored bad patch. The vehicle financing is required by a branch of Mahindra and Mahindra, namely the Mahindra Reva Electric Vehicles Pvt. Ltd. The present CGM of State Bank of India, Mumbai, Mr. R N Mehra mentioned in his statement that the bank would be financing around 85 percent of the car’s on road price. He also stated that the car company, Mahindra Reva electric vehicle would be financed by the bank for a period of seven years, at a considerably low interest rate of 12 percent. The CGM in his statement also mentioned that the EMI to be paid to the bank would be a small amount of 1765, to cover for the loan of 1 lakh over a seven year term.
With the backing coming in from one of India’s leading banks, it seems the company is out of the doldrums and can now move into marketing their product, the Mahindra Reva. The Chief of Operations of Mahindra Reva Electric Vehicles, Mr. R Chandramouli seemed considerably excited with the signed agreement and expressed his optimism regarding quick responses from dealers and consumers alike. The bank has chipped Mahindra and Mahindra with quite a bit of favor. The car company can now allow their customers to pay up the loan at any time, within the mentioned repayment time period and without having to pay any pre-payment penalty.
With its electric car concept hitting the markets, with the customers tentative of their product, this is probably the best thing that could have happened for the car manufacturers. The support of SBI, speaks for itself. The car is priced in the range of Rs.2.89 lakh to Rs.3.52 lakh to keep it in the competition with its diesel competitors.