The significant difference between Mahayana and Hinayana forms of Buddhism lay in that

The fundamental distinction between Mahayana and Hinayana (Theravada) lies in their soteriological goals and methods. Mahayana Buddhism introduced the concept of 'transference of merit' (parinamana), where a practitioner or Bodhisattva can transfer their accumulated spiritual merit to help others achieve liberation. In contrast, Hinayana emphasizes individual effort, where a person can only assist others through example and advice. While both traditions recognize the term 'Bodhisattva', Mahayana elevated it to a universal ideal where practitioners vow to save all sentient beings before entering Nirvana [2]. Hinayana focuses on the 'Arhat' (the worthy), who seeks personal liberation from the cycle of rebirth. Furthermore, Mahayana developed the notion of a 'saviour' figure, similar to the bhakti traditions in Hinduism, whereas Hinayana views the Buddha primarily as a historical teacher rather than a deity.

Sources

1. [2] THEMES IN INDIAN HISTORY PART I, History CLASS XII (NCERT 2025 ed.) > Chapter 4: Thinkers, Beliefs and Buildings > 10.2 The growth of Puranic Hinduism > p. 104