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Mahindra Tractors Partners with PNB to Improve Dealer Credit Facilities

Mahindra Tractors has joined hands with PNB to provide dealers with customized financial solutions. This relationship will empower dealers with improved working capital management, streamlined inventory processes, and accelerated business growth.It provides dealers with finance limits of up to INR 5 crore, attractive interest rates, and a 105 + 15-day credit period. It also provides 100% funding on Mahindra & Mahindra invoices with no margin requirements.

Flexible Dealer Financing Solutions

The program is offered only to dealers who’ve been in business a year or more. Loan limits are based on 105 days of sales. Moreover, as it helps meet peak season demands, the program allows organizations to better adjust during these high-demand periods.To streamline the process and provide more efficient transactions, PNB will use its Digital Financial Supply Chain Management (FSCM) technology. As a result of simplified documentation, dealers can focus on running their businesses with limited administration work to perform.

Focus on Dealer Development and Operational Effectiveness

Hemant Sikka, Senior Vice President at Mahindra & Mahindra Ltd., said that “the partnership is an essential part of their ecosystem and added,We are excited to partner with Punjab National Bank to provide our dealers a complete financial solution that caters to their specific business requirements. We are focused on empowering our dealer network with the tools to succeed. This bohemian approach with PNB will support the strengthening of working capital management, drive productivity, and allow our dealers to serve the farming community in the best way possible.”

This approach empowers dealers by improving cash flow, optimizing inventory levels, and decreasing storage costs. Dealers can use these resources to expand operations and growth investments and improve customer service.

How PNB Serves the Agricultural Sector

Here’s what Firoz Hasnain, Chief General Manager and Zonal Head, Mumbai Zone, Punjab National Bank, had to say: “We are thrilled to partner with Mahindra & Mahindra-Farm Division to bring this unique Dealer Finance Program to market. This initiative further reiterates our commitment towards supporting the growth of businesses across diverse sectors, especially MSMEs and agriculture, by offering them tailored financial solutions. We are confident that this program will perform a critical role in improving operational efficiency and addressing the financial requirements of the dealer network of Mahindra & Mahindra-Farm Division.” This partnership will offer customized financial solutions to dealers to improve their working capital, optimize cash flow, and simplify inventory management. “Structured to provide flexible credit options and competitive interest rates with simplified documentation processes, the Enhanced Dealer Program will allow dealers to focus on growing their business and providing excellent customer service.”

Building Stronger Dealer Relationships and Financial OptionsSeveral

Mahindra dealers already avail themselves of services offered by PNB, including cash credit limits, bank guarantees, and current accounts. This existing relationship will facilitate a seamless transition as dealers move their channel financing to PNB.For dealers availing channel financing from other institutions, PNB offers a balance transfer facility. From their end, this lets the dealers consolidate their financial arrangements with one bank and improve overall efficiencies.With a seamless flow of cash to take care of day-to-day expenses, the program addresses the pain point of improving working capital management for dealers. It also prevents shortages and avoids overstocking, allowing better inventory management, which optimizes dealers’ inventory investments.

Empowering Dealers to Succeed for the Long Run

This move provides Mahindra dealers with an end-to-end suite of financial solutions to help run their operations. This automated loan document generation streamlines the paperwork process so dealers can focus on growing their business and improving customer experience instead of administrative work.

This collaboration will bring together the expertise of PNB in financial solutions and the extensive dealer network of Mahindra Tractors in the agriculture segment. This enables dealers to adjust to consumers’ demands and promote the growth of the company, ensuring sustainable development for both companies.

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