Mahindra & Mahindra Ltd., has inked a Memorandum of Understanding (MoU) with the State Bank of India (SBI). The MoU is set to offer financial assistance for the purchase of M&M’s range of small commercial vehicles and pickups. SBI’s Contactless Lending Platform technology will further ensure uniformity, transparency and a reduced turnaround time in the loan approval process, it said in a press release.

It will also allow flexibility in a customer’s cashflow and contactless ownership experiences for brands such as SUPRO Profittruck and Jeeto and PickUp product range to make Mahindra vehicle ownership safe and affordable.

Amit Sagar, Business Head – SCV at Automotive division, Mahindra & Mahindra Ltd., said, "This scheme will provide the desired impetus and confidence to our SCV and pickup customers and help them prosper.”

How it works

The collaboration with SBI will allow M&M’s small commercial vehicles customers to avail loan in a contactless and hassle-free manner with only 59 minutes loan approval process. This will help customers own a superior product with EMI as low as Rs. 6666 (for a loan amount of 3.45 lacs) and a lower interest rate of 11.5 percent. It also gives flexibility of extended tenure up to 6 years including a one-month moratorium period also.

The customers can opt for a higher loan amount with up to 85 percent on-road funding. There is no requirement of any third-party guarantor.

Along with MSME, small road transport operators and First Time Buyers of small commercial vehicles can also take benefit from this breakthrough M&M vehicle financing scheme with SBI.