Mahindra Tractors Partners with Punjab National Bank
Mahindra Tractors, part of Mahindra & Mahindra Ltd, announced a partnership with Punjab National Bank (PNB) on Tuesday to offer channel finance solutions to its dealers. The two organizations have signed a Memorandum of Understanding (MoU) to facilitate this initiative.
Under the partnership, Mahindra Tractors' dealers with a business vintage of over one year will be eligible for a finance limit of up to Rs 5 crore. The assessment for this limit will be based on 105 days of sales. Dealers will benefit from a 105-day credit period, along with an additional 15-day grace period, allowing them to access 100% funding of the Mahindra & Mahindra invoice without any margin requirements.
Hemant Sikka, President of Mahindra & Mahindra Ltd's Farm Equipment Sector, stated, "This collaboration with Punjab National Bank will enhance working capital management and drive efficiency, enabling our dealers to better serve the farming community".
Firoz Hasnain, PNB Chief General Manager and Zonal Head for Mumbai Zone, emphasized that the initiative reflects the bank's commitment to supporting business growth across sectors, particularly in MSMEs and agriculture, by providing customized financial solutions.
