Mahindra Finance’s accelerated push into artificial intelligence is transforming loan origination and servicing, with automated systems now managing 70% of new loan volumes and dramatically reducing borrower delays.
Mahindra Finance says its push into artificial intelligence and digital lending is reshaping how the business originates and services loans, with automated systems now handling about 70% of new loan volumes. The company has moved away from a fragmented, branch-led process towards a more standardised operating model across more than 1,300 branches, according to the information provided.
The shift has been especially visible in its CPC, or customer processing centre, where file volumes have increased roughly eightfold. At the same time, the cost per file has fallen to 54 from a base of 100, while turnaround time has dropped to 49, also on a 100-point base. Mahindra Finance says this reflects a wider effort to streamline underwriting, improve efficiency and free up branch staff for sales and customer service.
Digital lending has also sharply reduced delays for borrowers. Time to first offer has fallen from six to seven days to about 20 minutes, while the period from login to disbursement has shortened from 10 to 12 days to either the same day or within two days in most cases. That acceleration appears to be supporting growth in core vehicle finance, with tractor disbursements up by more than 45%, alongside stronger traction in digital collections, insurance, fixed deposits and personal loans.
The company’s latest annual report also points to broader digital momentum, including more than 14.3 lakh cumulative app users, digital collections of over ₹1,500 crore and a tenfold rise in positive customer reviews. It said it plans to extend coverage further into insurance, SME lending and mortgages, while deepening self-service tools and tightening omnichannel integration to cut turnaround times and support cross-selling. Mahindra Finance has also been expanding its AI-led collections capability, including a partnership with Credgenics announced in 2022 and a voice-AI tie-up with Sarvam that has already handled more than one crore calls in 12 Indian languages, according to company and industry reports.
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