Mahindra Tractors Partnership with Punjab National Bank

Mumbai - Mahindra Tractors., a division of Mahindra & Mahindra Ltd., a tractor manufacturer, has signed an MoU with Punjab National Bank (PNB) to provide Channel Finance solutions for its dealers. The partnership aims to enhance working capital management, streamline inventory, and support business growth within the dealer network.

Under the agreement, Mahindra Tractors dealers with over a year of business history can access finance limits up to ₹5 crore, based on 105 days of sales, with a 105-day credit period and a 15-day grace period. The program offers 100% invoice funding with no margin requirements. Financing will be provided through PNB's digital FSCM module, offering competitive interest rates, simplified documentation, and streamlined processes to help dealers manage finances and focus on customer service.

Mr. Hemant Sikka, President of Farm Equipment Sector at Mahindra & Mahindra Ltd., said, "the collaboration would support dealers in meeting their unique business needs, enhancing working capital management, and improving operational efficiency."

The agreement also supports peak season financial needs, helping dealers manage higher demand periods. Firoz Hasnain, Chief General Manager at PNB, highlighted the bank's focus on providing tailored financial solutions for the agricultural sector and MSMEs. Many Mahindra dealers already have financial ties with PNB, easing the transition to the new channel finance solutions. Dealers with other institutions can transfer their financing arrangements to PNB through a balance takeover.