Case Name :      Mahindra and Mahindra Finance Services Limited: Empowering Rural Customers in India

Authors :           Rajeev Kumra

Source :             Ivey Publishing

Case ID :            W14606

Discipline :        Marketing

Case Length :    10 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Mahindra and Mahindra Financial Services Limited is a non-banking finance company in India whose product portfolio includes vehicle loans, used vehicle financing, housing finance, personal loans, fixed deposits, mutual fund distribution, insurance broking, gold loans and loans for construction equipment. Catering to the rural poor across India, the company has close to 6,600 employees, mostly hired locally to serve local needs. Because it focuses on future cash flow projections and not on past credit history, and takes into consideration the integrity and character of the customer – primarily farmers, small traders and vehicle operators but also some small and medium enterprises – as well as the projected business plan, it is a good fit for poor rural Indian consumers. It bridges the gap between moneylenders, who charge exorbitant interest, and public sector banks that require collateral. In 2013, the manager of the Bijnor branch is approached by the owner of a transport firm who requests a loan to buy two more trucks to expand her business of moving goods for small pharmaceutical companies. Given that the prospective borrower has been rejected by a competing bank, should the loan to her be sanctioned?