Mahindra Tractors Teams Up with PNB for Dealer Finance Boost

Mahindra Tractors, part of Mahindra & Mahindra Ltd, has partnered with Punjab National Bank to provide channel finance solutions to its dealers through an MoU. Dealers with a business vintage over a year are eligible for finance limits up to Rs 5 crore, enhancing operational efficiency and working capital management.

Mahindra Tractors, a division of Mahindra & Mahindra Ltd, announced a strategic collaboration with Punjab National Bank (PNB) on Tuesday, aiming to deliver channel finance solutions to its dealers.

Under this partnership, which has been formalized through a Memorandum of Understanding (MoU), all dealers with at least one year of business operations qualify for a finance limit extending up to Rs 5 crore. This evaluation is based on a sales cycle of 105 days.

The initiative is poised to enhance working capital management and dealer efficiency by providing a 105-day credit window, an additional 15-day grace period, and full invoice funding with no margin requirements. This collaboration, highlighted by Mahindra's executive Hemant Sikka, is set to bolster support for the agricultural community.

(With inputs from agencies.)