Tata Motors is expected on Monday to obtain the agreement of its banks to roll over about $1.05bn in debt, rescuing India’s largest carmaker from the brink of default.

The extension of the loan until the end of 2010 will complete the refinancing of a $3bn bridge loan Tata Motors took out last year to finance its acquisition of Ford’s Jaguar-Land Rover marques. The loan is due next Friday.