Punjab National Bank (PNB) has signed a memorandum of understanding with IndianOil Corporation to cater to the financing needs of dealers.
The initiative will benefit IndianOil dealers with credit facilities at lower interest rates, nil margin, and with minimum or zero collateral requirements through the PNB e-Dealer scheme.
PNB said its electronic dealer finance scheme is a tailormade credit lending product crafted for IndianOil dealers. The loan can be availed a maximum of up to Rs 2 crore with zero-margin with no collateral security for a person who is having a dealership with IndianOil for five years or more.
Existing proprietorships, partnerships, LLP companies, trusts, or society entities having a valid dealership agreement with IndianOil can also avail of the scheme.
“The MoU is of special significance as the Indian MSME sector is gearing up to serve the nation’s growing demand in post-pandemic times,” said Rajeev Puri, Chief General Manager of PNB’s MSME Division.
“PNB is looking forward to bringing value to the entire ecosystem of dealer inventory financing starting with this best-in-class e-Dealer scheme with IndianOil. This first-of-its-kind deal will pave way for future specialty financing products that PNB 2.0 looks forward to unveil,” he added.