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As a part of this alliance, India Post Payments Bank (IPPB) will provide lead referral services to MMFSL for passenger vehicles, 3-wheeler, tractor and commercial vehicle loan categories and provide cash EMI deposit facility to existing MMFSL customers at post offices.
As a pilot, this scheme would first go live in IPPB branches in the states of Maharashtra and Madhya Pradesh. It is expected to spread across other states over the next 4-6 months. With this IPPB will also be able to expand its financial product portfolio within the payments bank licensing framework. The complete step by step guidance will be available at IPPB network, to ensure a hassle-free experience to all potential customers. With the launch of Cash Management services, Mahindra Finance customers can visit Post Office to deposit EMI payment.
Ramesh Iyer, vice chairman & managing director, Mahindra Finance said, "At Mahindra Finance our objective is to enable simplified yet reliable access to credit. We are happy to collaborate with IPPB that will enable us to access the large set of IPPB's network. The tie-up will also enable customers with financial security, empowerment, and ease of repayment."
J Venkatramu, MD & CEO, IPPB, "Easy access to credit is an important prerequisite towards achieving inclusive growth. Since its inception, IPPB is committed towards promoting financial inclusion among low-income and underbanked segments at the last mile by leveraging the unparalleled network of Post Offices, and technology-driven banking solutions. The partnership with MMFSL is a milestone in IPPB's journey to become one of the largest platforms for availing credit products by our customers for meeting various needs, in line with our focus on providing comprehensive customer centric, convenient and digital solutions to our customers."
IPPB has been established under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India.
Mahindra Finance, part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.1 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.
Mahindra Finance reported a consolidated net profit of Rs 239.86 crore in Q1 FY23 as against a net loss of Rs 1,573.40 crore posted in Q1 FY22. Total income rose 13.5% year on year to Rs 2,913.96 crore in Q1 June 2022.
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