Mercedes‑Benz Financial Services India

What Mercedes‑Benz Financial Services India does

Mercedes-Benz Financial Services India Private Limited (MBFSI) is a wholly owned subsidiary of Mercedes-Benz Mobility AG, Germany, incorporated in 2010 and registered with the Reserve Bank of India as a Non-Deposit Accepting Systemically Important Non-Banking Finance Company (NBFC-ND-SI) under License N-07-00790. The company provides vehicle financing to end customers of Mercedes-Benz passenger cars and Bharat-Benz commercial vehicles, and offers inventory and working capital financing to Mercedes-Benz India authorized franchise dealers. Its product portfolio is sold under the STAR brand umbrella and includes STAR Finance (flexible, EMI-customized vehicle loans), STAR Agility+ (assured buyback program with inclusive maintenance and extended warranty, structured with a balloon residual), STAR Protect Insurance (motor insurance bundled at the point of sale), Retention (loyalty benefits for repeat customers), and Advance Assurance (extended warranty). The company also operates the MB Finance Application — a self-service mobile platform on iOS and Android for loan lifecycle management — and TDS Pro, a web tool for TDS compliance across the loan book.

MBFSI's business model is anchored in net interest income from its vehicle loan book, supplemented by insurance commissions (transaction fees on STAR Protect) and dealer inventory financing income. Pricing is quote-based and not publicly disclosed; disclosed fees include 4% early termination on principal outstanding plus 18% GST, 4% part-prepayment plus 18% GST, a ₹1,000 plus GST bank-change fee, and a ₹5,000 per-contract loan restructuring fee. The company underwrites using third-party credit bureau data (CIBIL, Experian) and processes EMIs via NPCI's ECS/ACH infrastructure with JP Morgan Chase Bank as its banking partner in Chennai and Karnataka.

The go-to-market is a captive, dealer-anchored model: financing is originated at the point of vehicle sale through Mercedes-Benz India's authorized franchise dealer network, with MB India and franchise partners acting as service providers rather than credit originators. The customer servicing layer combines the MB Finance mobile app, a toll-free customer service center (operated in partnership with Concentrix Daksh India at a Pune facility), email support, and physical offices in Chennai (registered headquarters) and Pune (corporate operations). MBFSI is a privately held, non-listed NBFC that publishes annual reports from FY 2019-2020 through FY 2024-2025 and operates exclusively in India.

Name

Mercedes‑Benz Financial Services India

Legal name

Mercedes-Benz Financial Services India Private Limited

Website

https://mercedes-benz-financialservices.in

Company type

Private

Founded year

2010

Operating status

Operating

Short description

Mercedes-Benz Financial Services India is an RBI-registered NBFC-ND-SI and wholly owned subsidiary of Mercedes-Benz Mobility AG, Germany, providing vehicle financing, insurance, and dealer inventory financing to Mercedes-Benz passenger car and Bharat-Benz commercial vehicle customers across India.

Ownership category

akta.pro rank

Product category

Auto Finance

NAICS

Sales Financing (52222), Sales Financing (522220)

SIC

Personal Credit Institutions (6141), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Fleet & Commercial Vehicle Finance (FSAKADAE)

akta.pro secondary industry

Vehicle Extended Warranty (VSC) & Mechanical Breakdown Insurance (MBI) (FSAJALAA)

Keywords

• Vehicle financing
• Auto loans
• Captive finance
• Vehicle insurance
• Dealer inventory financing

Headquarters

HQ city

Chennai

HQ country

India

HQ region

Asia

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Operations, Technology or R&D, Personnel, Marketing or Sales, Others, Infrastructure

Revenue model

1. Vehicle Loan Interest Income: Core revenue from providing vehicle financing to Mercedes-Benz customers. Interest income generated from EMI payments on vehicle loans. The company charges 4% early termination fee plus 18% GST on principal outstanding.
2. Dealership Inventory Financing: Financing services provided to MBGAG franchised dealers for vehicle inventory. Supports dealership working capital needs.
3. STAR Protect Insurance: Insurance products offered as part of the finance and insurance solution, including extended warranty and vehicle protection.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

MBFSI provides retail vehicle financing (auto loans) for Mercedes-Benz passenger cars and commercial vehicles, wholesale inventory and working-capital financing for Mercedes-Benz franchised dealers, vehicle insurance products (STAR Protect Insurance), extended warranty (Advance Assurance), assured buyback plans (STAR Agility+), and customer loyalty benefits (Retention). It also operates digital self-service platforms — the MB Finance Application for customers and the TDS Pro Tool for dealers — to manage loan accounts and tax-deduction workflows.

Product overview

Mercedes-Benz Financial Services India offers a unified portfolio of finance and insurance products designed for Mercedes-Benz vehicle customers and dealers. The core offerings include STAR Finance (flexible vehicle financing), STAR Agility+ (assured buy-back program with maintenance and warranty), and STAR Protect Insurance. These are complemented by Retention benefits for loyal customers, Advance Assurance extended warranty, and the MB Finance Application mobile platform for contract management. The TDS Pro tool provides self-service TDS management. As an NBFC-ND-SI registered with RBI, the company provides financing to end customers and dealership-related financial services including inventory financing for Mercedes-Benz franchised dealers.

Differentiator

Problem solved

Functional benefit

Brands

• STAR Finance: Flexible and tailor-made finance options for Mercedes-Benz vehicles
• STAR Agility+
• STAR Protect Insurance
• Advance Assurance
• Retention
• MB Finance Application

Products and services

• STAR Finance Vehicle loan product that finances the purchase of Mercedes-Benz passenger cars and commercial vehicles by individual customers, providing flexible loan tenure, EMI options and end-to-end captive financing at the dealership point of sale.
• STAR Agility+ Assured buyback / flexible financing plan that gives Mercedes-Benz customers the option to return or upgrade their vehicle at the end of the finance tenure, combined with tailored loan structuring.
• STAR Protect Insurance Vehicle insurance product designed for Mercedes-Benz customers, bundled with STAR Finance to provide comprehensive protection for the financed vehicle.
• Retention Customer loyalty program that provides exclusive benefits and rewards to existing Mercedes-Benz customers who financed their vehicles through MBFSI, aimed at encouraging repeat purchases and brand loyalty.
• Advance Assurance Extended warranty product for Mercedes-Benz vehicles that provides coverage beyond the standard manufacturer's warranty, offering peace of mind to vehicle owners.
• MB Finance Application Mobile application that allows Mercedes-Benz finance customers to access and manage their finance contracts, view loan details and perform self-service account operations.
• TDS Pro Tool Online tool provided to Mercedes-Benz dealers to manage Tax Deducted at Source (TDS) workflows and compliance on customer finance contracts with MBFSI, including integration with credit bureaus (CIBIL, Experian) and NPCI payment infrastructure.
• Dealer Inventory and Working-Capital Financing Wholesale financing facility extended to Mercedes-Benz authorised franchised dealers to fund vehicle inventory purchases and day-to-day working-capital requirements of the dealership business.

Segments3 records

Ideal customer profiles2 records

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature2 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Mercedes-Benz India Private LimitedcoreChannel Partner/ Reseller/ DistributorMB India acts as service provider alongside authorized franchise partners who sell vehicles. MB India and franchise partners do not extend credit but facilitate the financing process for customers at point of sale.
• JP Morgan Chase BankminorOthersBanking partner for customer payments and EMI processing. JP Morgan Chase Bank, Paranur Branch (IFSC: CHAS0INBX04) for Chennai operations and Devanahalli Branch (IFSC: CHAS0INBX03) for Karnataka operations.
• Concentrix Daksh India Pvt LtdminorImplementation/ SI/ Consulting PartnerOutsourced customer service operations partner handling customer service team functions at their Pune facility on behalf of MBFSI.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Volkswagen Finance Private Limited: Captive financing arm of Volkswagen Group India providing auto loans and dealer inventory financing across Skoda, Volkswagen, and Audi; directly comparable as a multi-brand premium-OEM captive financier.
• Mahindra & Mahindra Financial Services: Large Indian NBFC focused on retail vehicle and tractor financing with strong dealer relationships; comparable as a listed, scale auto-finance NBFC operating through Indian dealer networks.
• Tata Capital Financial Services: Tata Group NBFC providing auto loans for passenger and commercial vehicles through dealer partnerships; comparable as a diversified NBFC with material vehicle-finance exposure in India.
• Maruti Suzuki Smart Finance: Mass-market OEM-led auto finance orchestration program in India partnering with multiple financiers; structurally comparable as an OEM-anchored vehicle finance distribution channel in India.
• BMW Financial Services India: Captive finance arm of BMW India offering retail loans, leases, and dealer financing for premium passenger vehicles; directly comparable as a luxury-OEM captive NBFC inside India.
• Toyota Financial Services India: Captive auto financier for Toyota and Lexus vehicles in India offering retail loans, balloon finance, and dealer stock funding; directly comparable as an OEM captive finance NBFC.
• Shriram Finance Limited: Indian NBFC with a large used vehicle and commercial vehicle financing book funded through branch and partner networks; comparable as a non-bank vehicle financier with dealer and direct origination.
• Cholamandalam Investment and Finance: Indian NBFC with a substantial vehicle finance book covering passenger cars, CVs, and used vehicles through dealer channels; directly comparable as a non-bank auto financier with dealer-driven origination.

Broad incumbents

• HDFC Bank Auto Loans: India's largest private-sector bank with a material retail auto loan book and dealer-tie-up programs; comparable as a broad incumbent depository lender competing for the same vehicle-finance customers.
• Bajaj Finance Auto Lending: Large Indian NBFC offering passenger vehicle loans, two-wheeler loans, and dealer finance across a national franchise; comparable as a broad incumbent non-bank financier in retail auto lending.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Mercedes‑Benz Financial Services India