Dailymirror.news, Hyderabad, December 24th, 2024: Mahindra Tractors, part of Mahindra & Mahindra Ltd.’s Farm Equipment Sector, has signed a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) to introduce Channel Finance solutions for its dealers. This collaboration aims to provide Mahindra Tractors’ channel partners with customized financial solutions that will improve working capital management, streamline inventory, and foster business growth.

Under this partnership, all Mahindra Tractors dealers with a business history of over one year are eligible for the Channel Finance limit. The program offers a finance limit of up to ₹5 crore, with the assessment based on 105 days of sales. Dealers will enjoy a 105-day credit period, along with an additional 15-day grace period. The program also offers 100% funding of the Mahindra & Mahindra invoice without any margin requirement. With competitive interest rates and simplified documentation, the financing process ensures that dealers can focus on serving customers. The digital FSCM (Financial Supply Chain Management) module from the bank will further enhance the service experience.

Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd., shared, “We are thrilled to collaborate with Punjab National Bank to provide our dealers with a financial solution tailored to their specific business needs. This partnership will strengthen our dealer network by improving working capital management, enhancing efficiency, and ultimately benefiting the farming community.”

The partnership also includes provisions to meet the peak season financial requirements of dealers. This flexibility helps Mahindra’s dealers manage their financial obligations during high-demand periods, enhancing operational efficiency.

Firoz Hasnain, Chief General Manager and Zonal Head, Mumbai Zone, Punjab National Bank, commented, “We are excited to partner with Mahindra & Mahindra’s Farm Division to launch this innovative Dealer Finance Program. This initiative reflects our commitment to supporting the growth of businesses, particularly in the MSME and Agriculture sectors, by offering customized financial solutions. We believe this program will significantly improve the financial operations of Mahindra’s dealer network, enabling them to streamline inventory, enhance cash flow, and focus on business growth.”

Many Mahindra dealers already have strong business relationships with PNB, using various financial products like CC limits, bank guarantees, and current accounts. This established connection ensures a smooth transition for dealers choosing to shift their channel finance arrangements to PNB. Dealers with existing channel finance from other institutions can also move their financing to PNB through a balance takeover.

Mahindra Tractors encourages all its channel partners to visit their nearest PNB branch to begin the documentation process and take advantage of this exclusive finance offer. Branch locations are available on the PNB website. https://www.pnbindia.in/