Mahindra and Mahindra, part of the USD 14.4 billion Mahindra Group, on Saturday inked a MoU with PSU Indian Overseas Bank for providing financing for a range of its vehicles.
M&M Senior Vice-President (sales and customer care) Arun Malhotra exchanged documents with IOB General Manager K Subrahmanyam at a function held at Chennai on Saturday.
“We want to enter into the commercial vehicle financing market. And through this MoU, we are entering into it ..”, Subramanyam said, adding that IOB offers 12.5 per cent interest for financing of commercial vehicles.
Malhotra said about 30 per cent of such vehicles sold through finance (schemes) happen in the last quarter of calender year. “In fact, in the last month alone (December) 10 per cent of sales come through vehicle financing..”, he said.
M&M Senior Regional Manager, Tamil Nadu, P V Ramachandran said the company was growing at 20 per cent (year-on-year) in the passenger vehicle segment while, commercial segment witnessed a 35 to 40 per cent growth.