How Mahindra Finance turned an underserved rural market into ₹1.34 lakh crore in AUM

From a mid-1990s dealer visit to ₹61,118 crore in FY26 disbursements across 5.18 lakh villages.

₹1.34 lakh cr+Business AUM

FINSAMUDRA DESK · 9 Aug 2026, 1:45 pm IST · 1 MIN

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₹61,118 crFY26 disbursements

1,348Offices

5.18 lakhVillages reached

Nearly three decades later, the business he helped build disburses ₹61,118 crore in loans in a single year. — Image: Finsamudra LinkedIn archive

Mahindra Finance disbursed ₹61,118 crore in loans in a single year in FY26 — a scale that traces back to a bet on rural India made in the mid-1990s, when formal finance had barely penetrated the countryside and customers were relatively debt-averse.

Rather than walk away from that market, Mahindra Finance built into it — through dealer financing, rural branch expansion, retail tractor financing and deeper reach into underserved areas. Ramesh Iyer, who approached a dealer in the mid-1990s, went on to lead the business until 2024.

Today the company reports over ₹1.34 lakh crore in business AUM, ₹61,118 crore in FY26 disbursements, 1,348 offices, more than 12 million customers and a reach across 5.18 lakh villages.

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How Mahindra Finance turned an underserved rural market into ₹1.34 lakh crore in AUM

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