Tesla Motors announced a $2.6 billion second-home loan with the loan servicer that would guarantee a car loan of $4,000 or more if the car’s loan is paid back in 30 months.
Tesla, the parent company of the electric car maker, said in a statement Monday that it expects the loan to be paid back with a “greater than 99.9% interest rate” in 30 years.
Tesla says it is also partnering with a car dealership, the Autoparts Car-Hire in Chicago, to deliver a secondhand car loan for up to $7,500.
The company said that if the loan is not paid back within 30 months, Tesla will replace the car, which is estimated to be worth about $6,400 to $8,000.
Tesla says it will also pay back $50 in interest on the loan if it fails to pay back its $2,000 loan, and the loan will be “reserved for future loan commitments.”
Tesla, founded in 2003, has been growing rapidly.
Last year, the company said it expected to be selling around 40,000 vehicles in 2019.
The company has said it will begin producing Model 3, the first of two electric cars, this year.