Mahindra ties up with Federal Bank for vehicle financing

Auto major Mahindra & Mahindra Ltd (M&M) today signed an agreement with Kerala-based Federal Bank for financing personal and commercial range of vehicles.

Under the Preferred Financier Agreement, M&M customers would be able to avail vehicle finance services from any of the 999 branches of the Federal Bank across the country, a company statement said.

The agreement was signed by M&M Senior Vice-President, Sales and Customer care, Arun Malhotra, and Federal Bank Executive Director P C John at a function here.

Federal Bank Executive Director P C John said the lender is expanding its operations in commercial and passenger vehicle financing and making 'enticing' offers to its customers and this arrangement is one of several such initiatives.

The bank would be offering "attractive package" both in terms of interest rate and margin norms for purchasers of M&M vehicles, he said.

Malhotra said Mahindra was hopeful of good response from its dealers and customers with highly competitive schemes for car loans and commercial vehicles with up to 90% funding and facility for repayment in 72 months.