Tata Motors on Friday said it had arranged a loan facility with the State Bank of Travancore for buyers of its passenger vehicles.

The bank offers loans of up to 85% of a vehicle’s on road price for up to seven years, “at a very competitive rate”, according to the automaker. It is freezing the interest at 10% until 15 May 2010 for deals approved no later than 30 April this year.

The loan facility will be available at the bank’s 723 branches across India and at Tata Motors’ 470 sales  dealer.

“This tie-up will make car buying easier for customers,” Tata said in a statement.

It announced four similar deals with other banks earlier this month. Tata added that State Bank of Travancore is one of the largest public sector undertakings in the country catering to both industry and retailing.