LONDON (AP) -- The Indian owner of car and sport-utility vehicle maker Jaguar Land Rover said Tuesday it no longer needs government funding after securing a 175 million pound ($288 million) private sector loan.
Tata Motors said it has secured some direct bank loans as well as guarantees that will allow it access to European Investment Bank funds.
The British government had been holding talks with Tata and Jaguar Land Rover about guaranteeing both short- and long-term financing, but it was reported in May that those discussions had stalled because the carmaker did not want to accept tough state-imposed conditions.
Business Secretary Peter Mandelson said that the private sector loan was a welcome development.
"The fact that the banks and commercial capital markets are meeting JLR's funding is a clear sign of confidence in the company, its products and the automotive sector," he said.
Mandelson added that the additional funding would allow Jaguar Land Rover to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year.
Tata said that it expected a 340 million pound loan from the European Investment Bank to be successfully secured in the coming weeks "through appropriate commercial arrangements."
"With the positive trend in the external environment in financial markets and improvement in general liquidity, these arrangements have been and are expected to be concluded without necessitating guarantees from the U.K. government, for which discussions had been ongoing for some time," it added.