Mahindra Finance has taken a giant leap into the co-lending space by forging a strategic partnership with the State Bank of India (SBI), India's largest public sector bank. This collaboration sets the stage for a financial transformation, aiming to unlock the potential of Priority Sector Lending (PSL).

The co-lending model has been meticulously designed to blend the distribution capabilities of Non-Banking Financial Companies (NBFCs) with the cost-efficient capital strength of banks.

The outcome?

A broader reach and competitive interest rates.

The partnership was launched by Ramesh Iyer, Vice Chairman and Managing Director of Mahindra Finance, and the Deputy Managing Director of SBI, in the presence of Raul Rebello, Managing Director, and CEO – Designate of Mahindra Finance, and the CGM (SME) from SBI.

Here’s what Raul Rebello had to say about the partnership.

What's even more exciting is that this partnership is set to make affordable financial solutions accessible to Mahindra Finance's valued customers across the nation. The interest rates will be tailored to each customer's credit profile, ensuring a personalised and competitive financing experience.

With Mahindra Finance's robust rural distribution network and its expertise in the financial sector, coupled with SBI's competitive capital costs, customers are in for a competitive edge. The objective is to extend joint financial support to customers, enabling credit to the unserved segments of the economy at an affordable cost. This marks Mahindra Finance's debut co-lending venture with a bank, a testament to their long-term dedication to strengthening the MSME sector.

Under this agreement, Mahindra Finance will not only facilitate leads but also take charge of loan servicing, serving as a single point of contact for potential customers. This move signifies a bright future for Indian lending, making it easier, more accessible, and more competitive for everyone involved.