Mahindra Tractors has signed an MoU with Punjab National Bank to provide customized channel financing solutions for its dealers, enhancing working capital management and business growth.
Kochi: Mahindra & Mahindra Limited’s Farm Equipment Sector, which includes Mahindra Tractors, has signed a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) to offer channel finance solutions to its dealers. The partnership aims to provide tailored financial assistance to Mahindra Tractors’ channel partners, helping them improve working capital management, optimize inventory, and support business growth, according to Hemant Sikka, President of Mahindra & Mahindra Limited’s Farm Equipment Sector.
Under this agreement, all Mahindra Tractors dealers with over a year of business operations will be eligible for channel finance limits. The program offers credit limits of up to ₹5 crore based on 105 days of sales evaluation, along with a credit period of 105 days and an additional 15-day grace period. Dealers will benefit from 100% funding on Mahindra & Mahindra invoices without margin requirements. The financing solutions are designed with simplified documentation processes and lower interest rates, accessible through PNB’s fully digital Financial Supply Chain Management (FSCM) module.
This initiative underscores PNB’s commitment to fostering the growth of MSME businesses in the agriculture sector. “By providing customized financial solutions, we aim to support the development of businesses across the agriculture domain,” said Feroze Hasnain, Chief General Manager and Zonal Head of Punjab National Bank, Mumbai Zone. This partnership highlights a shared vision of both organizations to empower agricultural businesses by offering flexible and efficient financial solutions tailored to their needs.
