About Banking

Tata Finance is one of major companies of the Tata Group. The establishment of the Tata Finance has been a boon for the financial sector of the nation. Developing countries like India always crave for reliable financial resources. This is so because the traditional financial sectors of a nation are not easily accessible to the customers of the country as such. Therefore, there occurs a need for the some good financial organizations that cater to specific industries. Tata finance is one such big organization in India that provides reliable financial resources.

Tata Finance comprises mainly of two companies ' TMF and TAFI. Tata Motorfinance deals in auto financing and TAFI offers hire purchase services. The worldwide auto industry has often come across the issue of finding the best possible financial services to its customers. The automobile companies started looking for such companies that would fund the parent products along with acting as a catalyst in specific areas to promote the products. This is where in the role of companies like Tata Finance comes in.

Tata Motofinance was established in the year 2003, as the auto financing are for the Tata Motors. It was a common front-end, formed by three major organizations ' Tata Motors, Tata Finance, and Bureau for Hire Purchase and Credit (BHPC). It worked as the asset financing arm of the Tata Finance. However, it was just a virtual entity while both the divisions used to maintain their legal identity. It ventured into the market exclusively for the Tata Motor vehicles. Nevertheless, gradually, Tata Finance was merged with Tata Motors only and that is why TMF became a division of the Tata Motors only in April 2005.

TMF wishes to be the preferred financier for the Tata Motors dealers and customers for all its products. The company was built with the notion that it should be the first choice for anybody who has to deal with any of the Tata Motors products.

TAFI was established in 1984 by the Tata Group. The company was formed with the sole purpose of providing truck financial services. It basically focused on the commercial vehicle financing but gradually it stepped into the market for car financing, short term lending, leasing, and construction equipment financing etc. The subsidiaries of TAFI deal in primary dealership and investments. It also offers financial services for broking in the debt and equity market. It is the largest Non-Banking Finance Company (NBFC) and one of the leading companies of the Tata Group.

Tata Group has taken steps to convert the TAFI into a financial supermarket. The company mainly services the industrial sector of the nation. The company has a strong branch network of more than 75 branches all across the country. Now, it has new plans to enter into the power generation with the help of the non-conventional renewable energy sources.

Summary: Tata Finance is one of the leading companies of the Tata Group. However, the Tata Finance was gradually merged into the Tata Motors organization. Nevertheless, there are two companies that deal in finance ' the Tata Motorfinance and the TAFI. Both these arms of the Tata Motors provide financial services to its customers and dealers.