Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited
महिन्द्रा एंड महिन्द्रा फायनांशियल सर्विसेस लिमिटेड
Type Public
Traded as NSEM&MFIN
Industry Finance
Founded 1991
Headquarters Mumbai, Maharashtra, India [1]
Area served India
Key people Bharat N Doshi, Chairman
U Y Phadke, Vice Chairman
Ramesh Iyer, MD
Products Financial services
Revenue increaseINR2,012.58 crore (US$408.15 million) (2011)[2]
Net income increaseINR463.11 crore (US$93.92 million) (2011)[2]
Total assets increase INR9,09,502 Lakhs (2010)[2]
Total equity increase INR9,598 Lakhs (2010)[2]
Employees 6,972 (2010)
Parent Mahindra Group
  • Mahindra Insurance Brokers Limited
  • Mahindra Rural Housing Finance

Mahindra & Mahindra Financial Services Limited (MMFSL) (BSE532720, NSEM&MFIN) is one of the leading non-banking finance companies in India. It is among the top 500 Indian companies by market capitalization.[3]

MMFSL is focused on providing financing for Utility Vehicles (UVs), tractors and cars in the rural and semi-urban sectors. MMFSL is a subsidiary of Mahindra & Mahindra Limited, a leading tractor and UV manufacturer with more than 60 years’ experience in the Indian market. Focused on the rural and semi-urban sectors, MMFSL has nationwide distribution with one of the largest network of branches. Mahindra Finance has a presence spread over 450+ locations across India.

For the fiscal ended 31 March 2011, Mahindra Finance recorded a standalone net profit of INR463.10 Crore against INR342.70 Crore in FY10-11. In the same period, Mahindra Finance’s consolidated net profit stood at INR493.66 Crore compared to INR356.09 Crore. Over the five quarters preceding June 2011, Mahindra Finance reported an average growth in revenues and operating profit of 27% and 49%, respectively. Its average operating margin is 36% and return on net worth is 19%.[4] MMFSL has moved from a single product company to multiple product company as on 2011. During FY2011, MMFSL has achieved around 60% growth. MMFSL's current thrust would be in commercial vehicle, construction equipment and second hand vehicle financing.[5]



Mahindra & Mahindra Financial Services Ltd. was incorporated on January 1, 1991 as Maxi Motors Financial Services Limited and received certificate of commencement of business on February 19, 1991. It's name was changed to Mahindra & Mahindra Financial Services Limited on November 3, 1992. MMFSL is registered with the Reserve Bank of India as an NBFC.

Important events

  • 1993: Commenced financing of M&M UVs
  • 1995: First branch opened outside Mumbai, at Jaipur
  • 1996: Commenced financing M&M dealers for purchase of ractors
  • 1998: Launched pilot project for retail tractor financing
  • 1999: Commenced tractor retail financing in rural and semi-urban areas
  • 2001: Total Assets crossed INR 10 billion
  • 2002: Commenced financing of non-M&M vehicles, Received Tier II debt from International Finance Corporation (IFC)
  • 2004: Long term credit rating of AA+/Stable, Listing of non convertible debentures on BSE on the wholesale debt market segment Securitisation of tractor assets of INR 256.6 million
  • 2005: Tie-up with HPCL, MIBL became wholly owned subsidiary, Commenced distribution of third party mutual funds
  • 2006: A successful IPO, subscribed nearly 27 times more, tied up with Maruti Udyog Limited ;Benchmark with 400 branches
  • 2007: Entered Commenced Home Loans Business through a subsidiary Mahindra Rural Housing Finance Limited
  • 2008: Received 12.5% equity participation from NHB for Subsidiary Mahindra Rural Housing Finance Ltd; Preferential allotement of shares to Standard Chartered Private Equity Ltd & TPG Axon Private Equity Ltd
  • 2009: Launch of Fixed Deposits Program

Products and services

The company's product portfolio includes right from finance for two wheelers, tractors, farm equipment, cars and utility vehicles to commercial vehicles and construction equipment also have a group of experts providing investment advice, surveying available market products and choosing the most suitable to customers' needs. The average loan size is about INR3.5 Lakh [US$7,600]. The interest rates range from 12% - 14% for new vehicle loans and 18% - 19% for secondhand vehicles. Interest rates in urban India would be cheaper by 2% - 3%.[6]

List of products and services offered by MMFSL:

Tractor Loans: Financing is provided for a wide range of tractors of the Mahindra, Swaraj & Shaktiman brands. The loans are highly customized specific to farmer requirements.[7]

Utility Vehicles:Mahindra finance provides loan schemes for Mahindra Utility vehicles and other multi-utility vehicles, it also provides trade advance facilities for dealers.[8]

Car Loans: The company provides loans for car and is preferred financier for M&M, Hindustan Motors, Hyundai, General Motors, Maruti Udyog Limited. The loan obtaining process ensures maximum flexibility, minimum paperwork and highly customised loans to suit car buyers needs.[9]

Three-Wheeler Loans: The company supports a wide range of Mahindra three-wheelers financing with flexible repayment options and minimal documentation. Company’s customized financial options and quick process of sanctioning a loan makes acquiring a new three-wheeler easier and faster.[10]

Commercial Vehicle Loans: The company has loan schemes for commercial vehicles including trucks, buses, tippers, excavators, light commercial vehicles, etc. Within this segment company operates in financing both – new as well as old vehicles.[11]

Two-Wheeler Loans: The company provides loans for a wide range of two-wheelers, which include motorbikes, mopeds, scooters or scooterettes, the customers, are offered speedy loans with flexible repayment options. The company provides loans to women customers at special rates and offers fast approvals for the same.[12]

Construction Equipments: The company has Range of simple and flexible loans for customers in need of construction equipments Within this segment company operates in financing both – new as well as old equipments.[13]

Refinance: The Company has products to support purchase of used cars, utility vehicles, commercial vehicles and tractors. It also provides expedient loans against an existing car, utility vehicle and other commercial vehicles.[14]

Personal Loans: The company has launched products in personal loans segment. Customers can get loans for their needs like Marriage related expenses, Children’s higher education, Medical treatment, Agricultural, etc.[15]

Fixed Deposit: MMFSL offers fixed deposits as one of the options for financial savings. As of June 2011, the fixed deposits offered by MMFLS have been given rating of FAAA by CRISIL. MMFSL offeres its customers the options of cumulative and non cumulative deposits.[16]

Gold Loan: MMFSL launched its "Loan against Gold" product in Kerala. This offering helps to provide liquidity against gold ornaments without having to sell them. This offering was launched considering that Kerala records the highest number for remittance of funds from overseas, especially the Middle East.[17]

Investment Advisory Services - Mutual Fund Distribution:


The Company’s investment advisory services arm advises customers invest their money in equity through different Mutual Fund Schemes to get best returns. The mutual fund distribution team of MMFSL started its operation in September 2005. The schemes are offered to customers in northern, southern & western states of India. MMFSL invests in equities as it believes that equities typically outperform the investments [18]


Mahindra Insurance Brokers Limited (MIBL)

MIBL Logo.jpg

MIBL undertakes direct insurance broking business both in the Life and Non-Life insurance segments with a focus on Retail and Commercial lines of businesses. The Insurance Regulatory and Development Authority (IRDA) granted a Direct Broker’s License to MIBL in May 2004. MIBL has received ISO 9001:2008 Certification for Quality Management Systems. MIBL also offers value-added services like Risk Management / Audit which include risk inspection and gap analysis, and portfolio management which includes claims handling.

The Life Insurance retail products include Children’s Plans, Endowment, Money Back, Retirement Plans, Term, Unit Linked Plans and Whole-Life Plans. The Group Policies include Credit Cover, Employees Term Cover, Gratuity and Superannuation. The Non-life Insurance retail products cover Personal, Industrial, Commercial, Social and Liability plans.[19]

Mahindra Rural Housing Finance Limited (MRHFL)

MRHFL Logo.jpg

MRHFL provides cost effective and flexible home loans to a wide base of customers and semi-urban India. Loans are provided for home construction, purchase, extension and improvement. Mahindra Rural Housing Finance was incorporated on April 9, 2007 and obtained a certificate of registration to commence the business of a Housing Finance Institution from the National Housing Bank on August 13, 2007. The National Housing Bank holds a 12.5% stake in the subsidiary. MRHFL now operates in various locations throughout India which include Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.[20]

MRHFL is targeting a loan book of Rs.5,000 crore in next three years succeeding 2011. The firm aims to generate business by tapping the rural clientele, offering loans up to Rs.3 lakh. The company expects to add 40,000-45,000 customers on an average in the housing subsidiary per year. The company also believes that this segment could be a billion dollar business in the near future.[21]

MF Connect 3000

MF Connect 3000 is a program by MMFSL which enables corporates to deploy hand devices across rural India. It helps financial services companies operating in rural markets to swiftly roll out fully operational branches and achieve faster turnaround times. Using MF Connect 3000, employees of financial companies can be equipped with mobile hand held devices. These hand held devices play the role of mini mobile branches and these devices can service rural business queries, collections and new business applications. The data is stored in a central database. The customer access information using secured access to the site. MF Connect 3000 has bagged the “Top 15 Best IT implementations of the Year Award 2007‐08,” and the "Pioneer CIO Award 2007‐08".[22]

Global expansion

The company is looking to go global, earlier this year the company entered into a joint-venture with De Lage Landen Financial Services (subsidiary of Rabo Bank) to provide finance to US-based tractor dealers. DLLFS and Mahindra Finance have 51% and 49% interest respectively in Mahindra Finance USA LLC. Mahindra Finance USA LLC., a state of Delaware limited liability Company, will provide exclusive wholesale inventory financing to US based tractor dealers and retail financing to enduser customers on Mahindra tractors & implements or used products.[23]

The company is now planning to take its portfolio to South Korea, South Africa and China. South Korea is expected to provide new opportunities in auto finance whereas China would be a hub for tractor financing. In South Africa, M&M is targeting finance opportunities for both commercial vehicles and tractors. As of now, the company is studying the business as well as policy environment of these markets. Earlier in the year, In South Korea, MMFSL would be looking to leverage the network of Ssangyong Motors. In China, M&M is present through two joint ventures to manufacture tractors suited to Chinese farming conditions and practices. In South Africa, the automobile company sells all its major products.[23]


  1. ^
  2. ^ a b c d "2011 Summary of Results". 
  3. ^ DNB 2007 Top 500 companies listings
  4. ^ "moneylife Article, June 2011". 
  5. ^ "ET - Ramesh Iyer, MD, MMFSL - Interview, June 2011". The Times Of India. 
  6. ^ "Interview of Ramesh Iyer, MD MMFSL". 
  7. ^ "MMFSL Tractor Loans". 
  8. ^ "MMFSL Utility Vehicle Loans". 
  9. ^ "MMFSL Car Loans". 
  10. ^ "MMFSL Three Wheeler Loans". 
  11. ^ "MMFSL Commercial Vehicle Loans". 
  12. ^ "MMFSL Two Wheeler Loans". 
  13. ^ "MMFSL Construction Equipment". 
  14. ^ "MMFSL Refinance". 
  15. ^ "MMFSL Personal Loan". 
  16. ^ "MMFSL Fixed Deposits". 
  17. ^ "MMFSL Gold Loan". 
  18. ^ "MMFSL Mutual Funds". 
  19. ^ "MIBL website". 
  20. ^ "MRHFL Details". 
  21. ^ "MRHFL Press Report". 
  22. ^ "MF Connect Article". 
  23. ^ a b "MMFSL Press Release". 

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