The investment will enable Mahindra Finance to boost growth, by extending loans to individuals, including farmers, to buy tractors, vehicles and other equipment, along with financing small and medium enterprises.
Mahindra Finance is a non-banking financial company, focused on the rural and semi-urban sector. The company has over 5.3 million customers and has assets under management of over USD 8.49 billion. The company’s business lines include vehicle and tractor financing and offering fixed deposits and loans to SMEs. It has 1,284 offices across the country. In May 2017, IFC had said that it was evaluating an investment of USD 100 million in Mahindra Finance.
The new loan will help the company expand further and cater to the needs of small landholders, according to IFC officials. Since its inception in 1991, Mahindra Finance has been working in the rural and semi-urban areas of India, catalysing financial inclusion of the unbanked and under-served communities and also partnering with them in their difficult times.
IFC also runs large advisory programmes aimed at developing farmers’ knowledge and adoption of modern agricultural practices to help them raise productivity, improve incomes, and learn new skills. IFC is focused on the private sector. Since 1956, it has invested in more than 400 companies in India, providing USD 17 billion in financing to the private sector.
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