Mahindra & Mahindra Ltd. (M&M), India's top utility vehicle and tractor manufacturer, has entered into a MoU with the State Bank of Travancore (SBT) for vehicle finance.

Under the pact, SBT will serve as a preferred financer for Mahindra vehicles, encompassing both commercial vehicles and passenger vehicles.

According to an official communiqué, customers, who are willing to purchase a commercial vehicle, can avail a loan of up to 85% of the on road price of the vehicle, with tenure of 7 years at 11.25% p. a.

However for purchase of passenger vehicle, customers can avail of a loan of up to 85% of the on road price of the vehicle with tenure of up to 5 years at 8% in the first year and 10% in the second and third year. It should be noted that State Bank of Travancore is a 100% government owned and SBI's largest Associate in the country.

The lender has 726 branches spread across 16 states and 2 Union territories.