Mahindra Tractors, a part of Mahindra & Mahindra Ltd.’s Farm Equipment Sector, has entered into a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) to introduce Channel Finance solutions for its dealers. This partnership is designed to enhance working capital management, optimize inventory, and foster business growth within the dealer network.
As per the agreement, dealers of Mahindra Tractors with a business history of over one year are eligible for a financing limit of up to ₹5 crore. The limit is based on 105 days of sales, offering a credit period of 105 days plus a 15-day grace period. The program ensures 100% funding of Mahindra & Mahindra invoices with no margin requirements, providing dealers with the necessary financial support to effectively manage their operations.
The financing solutions will be delivered through PNB’s digital Financial Supply Chain Management (FSCM) module. This platform streamlines processes by offering competitive interest rates and simplified documentation, enabling dealers to efficiently manage their finances while focusing on customer service.
Hemant Sikka, President of the Farm Equipment Sector at Mahindra & Mahindra Ltd., expressed confidence in the partnership, noting that it would help dealers address their unique business needs, enhance working capital management, and improve operational efficiency.
The agreement also supports dealers during peak season demand, enabling them to manage higher sales volumes effectively. Firoz Hasnain, Chief General Manager and Zonal Head of PNB’s Mumbai Zone, highlighted the bank’s commitment to providing customized financial solutions that cater to the agricultural sector and MSMEs.
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