The joint venture will have an authorised paid-up capital of Rs 100 crore, which will be shared 74 per cent and 26 per cent by Citicorp and Maruti Udyog respectively. The initial paid-up capital is Rs 60 crore, of which Rs 40 crore has already been remitted this week.

The company will finance purchases of new and second-hand cars. Currently located in 23 cities, the venture's network will expand rapidly to cover the the entire country.

The joint venture offers several flexible and customised financing options at affordable rates to Maruti buyers, a release says. Citicorp Finance will service the needs of the second-hand car market nationally. It will be offered through Citibank and Maruti's distribution network and customer base. Citibank will manage the joint venture andprovide key expertise.

The two partners are working on the introduction of a co-branded credit for Maruti, which will provide special values and features to customers. They are, at present, collating customer feedback to finalise the array of benefit and features, Maruti Udyog managing director RSSLN Bhaskarudu said.