Mahindra and Mahindra Financial Services Limited, a non-banking finance company, founded to cater the rural poor across India. The company’s employee base is around 6600 while most of them are appointed from the local region so that the company could target the actual needs of that region. The company’s primary customers are farmers, small traders and vehicle operators, but also some Small and Medium Enterprises (SMEs)
The company’s product portfolio includes housing finance, personal loans, gold loans, loans for construction equipment, vehicle loans, fixed deposits, insurance broking, used vehicle financing, and mutual fund distribution.
The company’s primary focus is on the future growth and revenue and avoids the past credit history, concentrating on the integrity and the nature of customer along with the business plan by the customer that needs funding, which in the most suitable strategy for the poor rural Indian consumers.
The company overcomes the all hardships between the moneylenders, who charge a significant premium, and public sector banks. The owner of transport, who moved goods for small pharmaceutical companies, requests a loan to the manager of Bijnor branch, so that he could expand the business by purchasing two more trucks.
Although, the request of this potential borrower has already been rejected by a competing bank, should the company approve the loan request by the transport owner? The writer, Rajeev Kumar, has affiliation with Indian Institute of Management, Lucknow.
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