New Delhi, Dec 24 (PTI) Mahindra Tractors, a part of Mahindra & Mahindra Ltd, on Tuesday said it has partnered with Punjab National Bank to provide channel finance solutions to its dealers.
The two partners have signed a Memorandum of Understanding (MoU), the company said in a statement.
As part of this partnership, all Mahindra Tractors’ dealers with a business vintage of over one year are eligible for the channel finance limit. The program offers a finance limit of up to Rs 5 crore, with limit assessments based on 105 days of sales, it added.
Dealers will benefit from a 105-day credit period, with an additional 15-day grace period, and enjoy 100 per cent funding of the Mahindra & Mahindra invoice without any margin requirements, the company said.
“This collaboration with Punjab National Bank (PNB) will help improve working capital management and drive efficiency, ultimately enabling our dealers to better serve the farming community,” Mahindra & Mahindra Ltd President, Farm Equipment Sector, Hemant Sikka said.
PNB Chief General Manager and Zonal Head, Mumbai Zone, Firoz Hasnain said the initiative underscores the bank’s commitment in supporting the growth of businesses across sectors, specially MSME and agriculture by providing them with customised financial solutions.
“We believe this program will play a crucial role in enhancing the operational efficiency and financial needs of Mahindra & Mahindra-Farm Division’s dealer network,” Hasnain added. PTI RKL DR
About the Author
