Mahindra and DBS Launch Green Dealer Financing Scheme

Mahindra & Mahindra and DBS Bank India launched India’s first sustainability-linked dealer financing programme for the automotive sector on 19 May 2026. The scheme links loan interest rates for authorised Mahindra dealerships to environmental, social and governance performance, sales targets, and selected sustainability measures.

Sustainability-Linked Financing

Sustainability-linked financing is a credit structure in which loan terms are connected to pre-decided performance indicators. In this programme, dealerships can receive preferential interest rates on loans for purchasing passenger vehicles and commercial vehicles.

Environmental Performance Criteria

The programme uses dealership-level environmental criteria that include greenhouse gas emissions tracking, water consumption monitoring, renewable energy adoption, rainwater harvesting, waste management, public EV charging facilities, and higher eSUV sales. These criteria are linked to the broader ESG framework used in corporate lending and dealer financing.

Scope 3 Emissions and Dealer Networks

Scope 3 emissions are indirect emissions that occur across a company’s value chain, including suppliers, distributors, and dealers. Mahindra & Mahindra has linked the programme to decarbonisation across its dealer network, which is a common structure in value-chain climate action.

DBS Bank India and Automotive Finance

DBS Bank India is the Indian subsidiary of DBS Bank, a Singapore-headquartered financial institution. The bank’s Global Transaction Services, Corporate Banking, Financial Institutions and SMEs division is involved in transaction banking and business lending.

Important Facts for Exams

• Environmental, Social and Governance is commonly abbreviated as ESG in corporate finance and sustainability reporting.
• Scope 3 emissions are part of the Greenhouse Gas Protocol classification used in emissions accounting.
• Rainwater harvesting is a water conservation method used in buildings, industrial units, and commercial premises.
• Public EV charging facilities are part of the electric mobility ecosystem in India.

Mahindra & Mahindra is an Indian automobile manufacturer with operations in passenger vehicles, commercial vehicles, and electric mobility. DBS Bank India operates as a banking subsidiary within the DBS Group structure.