Bank of Baroda inks pact with Mahindra & Mahindra for tractor finance biz

To push agriculture finance, state-owned Bank of Baroda (BoB) on Friday said it has entered into a pact with Mahindra and Mahindra for tractor finance business.

The lender, through its over 5,000 rural and semi-urban branch network, will provide tractor loan facility to customers of Mahindra and Mahindra.

This memorandum of understanding (MoU) will give a boost to agri business and will help farmers in availing hassle-free credit facilities for buying tractors, BoB Executive Director Vikramaditya Singh Khichi said.

The tractor financing scheme was first piloted in the UP zone for a year and it has been successful, he said adding that this is being expanded into 11 zones of the bank.

The bank has tied up with Gromax under the Mahindra stable as the preferred brand, he added.

Besides, he said, the bank is focussing on dairy sector self-help groups and farmer producer organisations for expanding the agriculture finance portfolio.