Car News in India

GE Capital said it has signed a deal on Monday with the Tata Motors owned Jaguar Land Rover to provide a loan up to 170 million pound (over Rs1,300 Crore).

The five-year loan will help finance Jaguar and Land Rover (JLR) in distribution, GE Capital said in a statement.

GE Capital President and CEO for Europe, Middle East and Asia Rich Laxer said that the deal is an evidence of their commitment to support important industries in Britain and Europe and to provide funding solutions that are tailored to companies'asset portfolio

Commenting on the loan deal, JLR Chief Financial Officer Ken Gregor said, “We are pleased that our funding plans have further progressed and welcome the confidence shown by GE Capital in the Jaguar Land Rover business.”

JLR, which had earlier this year unsuccessfully sought the British government help for funds, in early October, announced that it had arranged 500 million pound (Rs 3,700 Crore) funds from various financial institutions, including SBI.

While the country's largest lender SBI sanctioned a 175-million pound (Rs 1,300 Crore), ABC International Bank sanctioned $90 million (Rs 420 Crore) as export financing to the Tata Motors owned British marquee brands.

The iconic British brands had also secured long term-loan of 340 million pound (about Rs 2,650 Crore) from the European Investment Bank.

The salt-to-software conglomerate has pumped more than 1.2 billion pound into JLR to cover the losses since it bought the businesses from Ford Motor for $2.3 billion last year.