Tata Motors Finance (TMFL), a commercial auto finance company offering commercial vehicle loan services, is to be merged with Tata Capital Limited (TCL), offering a wide range of financial products and services for individuals, SMEs, and corporate clients.

The Board of Directors of Tata Motors Limited (TML), Tata Capital Limited (TCL) and Tata Motors Finance Ltd (TMFL) have approved a merger of TMFL with TCL through an NCLT scheme of arrangement.

With this merger, TCL will gain new customers in the fast-growing Passenger vehicle (PV) and commercial vehicle (CV) financing segments.

The scheme of arrangement will be subject to approval of SEBI, RBI, NCLT amongst others and all shareholders and creditors of TCL and TMFL and will take ~9-12 months to complete.