Mahindra Tractors and PNB have partnered to offer dealers tailored financial options. Through this relationship, dealers will be able to enhance working capital management, simplify inventory procedures, and drive business expansion.
The program offers dealers finance limits of up to INR 5 crore, competitive interest rates, and a 105-day credit period with an additional 15-day grace period. The financing solution also features 100% funding for Mahindra & Mahindra invoices without any margin requirements.
Adaptable Financial Options for Dealers
This program is available to dealers who have been in business for at least a year. 105 days of sales are used to calculate the loan limitations. Additionally, addressing peak season demands, the program offers the flexibility needed during times of high demand.
Transactions will be facilitated using PNB’s Digital Financial Supply Chain Management (FSCM) technology in order to speed up and simplify the process. Hence, dealers can concentrate on operating their companies having less administrative work to do, thanks to simplified documentation.
Prioritise Dealer Growth and Operational Efficiency
Hemant Sikka, Mahindra & Mahindra Ltd.’s President of the Farm Equipment Sector, highlighted the importance of the collaboration and said:
“We are delighted to partner with Punjab National Bank to offer our dealers a comprehensive financial solution that addresses their unique business needs. We are committed to supporting our dealer network providing them with the tools they need to thrive. This collaboration with PNB will help improve working capital management and drive efficiency, ultimately enabling our dealers to better serve the farming community.”
By increasing cash flow, optimising inventory levels, and lowering storage expenses, this approach gives dealers more power. These resources can be utilised dealers to increase operations and make growth investments while improving customer service.
The Function of PNB in Aiding the Agricultural Industry
Firoz Hasnain, Chief General Manager and Zonal Head, Mumbai Zone, Punjab National Bank, shared his perspective:
“We are excited to partner with Mahindra & Mahindra-Farm Division to launch this innovative Dealer Finance Program. This initiative underscores our commitment in supporting the growth of businesses across sectors, specially MSME and Agriculture providing them with customized 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. This collaboration will provide tailored financial solutions to dealers, enabling them to enhance their working capital, streamline inventory management, and optimise cash flow. The program is designed to offer flexible credit options, competitive interest rates, and simplified documentation processes, empowering dealers to focus on business growth and customer satisfaction.”
Strengthening Dealer Relationships and Financial Flexibility
Many Mahindra dealers already use PNB’s services, such as cash credit limits, bank guarantees, and current accounts. This existing relationship will ensure a smooth transition for dealers shifting their channel financing to PNB.
For dealers currently using channel financing from other institutions, PNB offers a balance transfer option. This feature allows dealers to consolidate their financial arrangements under one bank, improving overall efficiency.
The program meets dealers’ needs for improved working capital management, which ensures an uninterrupted cash flow and efficiently covers operational costs. Preventing shortages and overstocking allows for improved inventory management, which optimises inventory investments for dealers.
Enabling Dealers to Achieve Long-Term Success
This partnership equips Mahindra dealers with a comprehensive set of financial tools to manage operations effectively. The simplified loan documentation process allows dealers to focus more on business growth and customer satisfaction, reducing the time spent on administrative tasks.
The partnership boosts the agriculture industry combining PNB’s financial solutions expertise with Mahindra Tractors’ wide dealer network. Dealers have the freedom to meet client needs and drive company expansion, guaranteeing the long-term success of both businesses.