The Punjab National Bank (PNB) signed a memorandum of understanding with Indian Oil Corporation to meet the financing needs of concessionaires.
The initiative will benefit Indian Oil dealers with credit facilities at lower interest rates, zero margin and with minimum or no collateral requirements through the PNB e-Dealer program.
PNB said its electronic dealer finance program is a bespoke loan product designed for IndianOil dealers. The loan can be used at most up to ??2 crore with zero margin with no collateral warranty for a person who has had a dealership with IndianOil for five years or more.
Existing sole proprietorships, partnerships, LLP companies, trusts, or corporate entities that have a valid concession agreement with IndianOil may also benefit from the program.
“The MoU is of particular importance as India’s MSME sector is preparing to meet the country’s growing demand in the post-pandemic period,” said Rajeev Puri, chief general manager of the MSME division of PNB.
“PNB looks forward to bringing value to the entire dealer inventory finance ecosystem, starting with this premier online sales program with IndianOil. This one-of-a-kind agreement will pave the way for future specialized financing products that PNB 2.0 is eager to unveil, ”he added.
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