Tata Motors has succeeded in securing a 75 million pound loan from Burdale Financial, a member of the Bank of Ireland Group, for its ailing British brands Jaguar and Land Rover (JLR). The three year loan has been secured against stock inventories and receivables of Land Rover in the UK and the US.

The much needed help for JLR comes as it battles the economic downturn, which has been particularly hard on luxury car companies. Land Rover’s car sales (77,529) in January-July 2009 are down 37 per cent compared to sales in the corresponding period last year, while Jaguar’s sales (30,167 ) are down 28 per cent in the same period.

Meanwhile, the two British brands have still not received a financial aid package from the UK government. Contrary to last week’s media reports that Tata Motors and the UK government were close to reaching an agreement on loan guarantee terms, the car company is still not ready to accept some of the government’s ‘stiff’ conditions.