Purpose: To provide hassle-free, collateral-free short-term financing to eligible GeM sellers against confirmed Government e-Marketplace (GeM) Purchase Orders
Eligibility:
- Registered as a Sole Proprietorship on the GeM Portal.
- Possess a valid Udyam Registration Number.
- Have Escrow-linked GeM Purchase Orders.
- Business vintage of at least 6 months.
- GeM registration vintage of at least 6 months.
- Existing PNB customer for a minimum of 6 months.
- Must not be availing active MSME fund-based revolving facilities (CC/OD) from any Bank/FI.
Facility Type: Overdraft (General) and Term Loan
• Loan Amount: ₹25,001 to ₹5 lakh per PO (maximum ₹20 lakh per borrower)
Loan Assessment:
- 80% of the Purchase order value will be financed.
- Benchmark Ratio: Not applicable; financial statements not required
Tenure:
- The maximum tenor shall be restricted to the tenor of the Purchase Order (Delivery date), not exceeding 90 days.
- An additional 45 days shall be granted for repayment of the loan.
Security:
• Primary – Assignment of GeM purchase order against which bank has financed.
• Secondary – NIL
• Interest Rate: Concessional rate linked to RLLR
• Unified Fee: Unified fee including processing, document fee @0.35% of the loan amount plus applicable GST is to be recovered.