Public Sector Vijaya Bank today signed a MoU with auto major Hyundai Motor India Ltd (HMIL) as a preferred financier for financing the purchase of passenger cars.

According to press release from the bank, the MoU was signed by Mr K Jayakar Shetty, General Manager, Vijaya Bank and Mr Arvind Saxena, Director, Sales and Marketing, HMIL, in the presence of CMD Albert Tauro and ED Shubhalakshmi Panse. The MoU covers financing the purchase of the entire range of Hyundai passenger cars offering end to end financial solutions through all its 1,169 networked branches across the country. The customers can avail up to 85 per cent of on-road price of the car with a maximum repayment of six years at a competitive rate of 9.50 per cent.

The tie-up was expected to impart a major boost to the bank's activity in the growing auto finance space, the release added.