Mahindra and Mahindra on Saturday said that that it inked an MoU with Indian Overseas Bank for providing financing for a range of its vehicles.

Mr Arun Malhotra senior VP sales and customer care of M&M exchanged documents with Mr K Subrahmanyam GM of IOB at a function.

Mr Subramanyam said that “We want to enter into the commercial vehicle financing market. And through this MoU, we are entering into it adding that IOB offers 12.5% interest for financing of commercial vehicles.”

Mr Malhotra said about 30% of such vehicles sold through finance (schemes) happen in the last quarter of calendar year. He said that “In fact, in the last month alone (December) 10% of sales come through vehicle financing...”

Mr P V Ramachandran senior regional manager Tamil Nadu of M&M said the company was growing at 20% (year on year) in the passenger vehicle segment while, commercial segment witnessed a 35 to 40% growth.

(Sourced from BL)