Mahindra & Mahindra Financial Services, the financial services arm of M&M, on Friday said it has entered into a joint venture agreement with US-based De Lage Landen Financial Services Inc. (DLLFS), to provide financing to U.S.-based tractor dealers.

De Lage Landen, a fully-owned subsidiary of Rabobank Group, specializes in asset-based financing programs for equipment manufacturers, dealers and distributors all over the world.

DLLFS and Mahindra Finance will have 51% and 49% stake in the JV, respectively.

Christened Mahindra Finance USA LLC, the JV will provide exclusive wholesale inventory financing to U.S. tractor dealers and retail financing to end-user customers on Mahindra tractors and implements or used products.

The investment in this JV by both the partners will total to $10 million.

"We are happy to partner with a strong entity like DLLFS, and are confident of taking Mahindra USA's tractor sales to new heights in the United States. Mahindra Finance USA LLC is our first foray outside India," Mahindra Finance's managing director Ramesh Iyer told reporters here.

"We will jointly with our new partner guide the future of this venture for success by delivering products and services to both tractor dealers and customers," he added.

"The transition of the partnership to this joint venture will allow us to fully leverage the strengths of both partners to provide creative financial solutions for our customers," De Lage Landen's President, Global Business Unit Food & Agriculture, Tom Meredith said.

Uniting DLL's knowledge in finance, servicing and credit capabilities with the strength of the Mahindra brand, its comprehensive and growing product line, as well as Mahindra Finance's credit and sales finance knowledge from its Indian market, both partners are looking forward to a successful future for the joint venture together, the company said.