GeM Sahay 2.0: MSME Loan approval of INR 10 Lakh In 10 Minutes

In a significant move aimed at bolstering financial support for sellers registered on the Government e-Marketplace (GeM), the platform is gearing up to launch the second phase of its GeM Sahay initiative. This initiative is set to offer sellers access to loans, with coverage extending up to Rs 10 lakh. GeM CEO Prashant Kumar Singh highlighted that the loan approval process would be streamlined to just ten minutes.

In contrast to the initial phase, which exclusively catered to sole proprietors, GeM Sahay 2.0 is poised to expand its reach to all sellers, offering them the opportunity to secure collateral-free loans to address their working capital needs.

The Ministry of Commerce and Industries informed that loan amounts of nearly INR 21 crore have been disbursed to sellers so far through GeM Sahay. Over 2.13 lakh businesses are actively offering 36 lakh products on the platform, the Ministry added. GeM is harnessing cutting-edge technology to facilitate nationwide seller access to the public procurement market. This includes innovative initiatives such as GeM outlet stores and the One District One Product programme, it further said.

GeM Sahay mobile application was launched for MSMEs to address the credit access challenges experienced by them. The initiative paved the way for seamless financing by utilizing fintech.

Through the ‘GeM Sahay’ app, loan disbursement was instantaneous, as opposed to the conventional in-principle approval of loans, which often did not result in actual disbursal. This facility provided GeM sellers who were sole proprietors with the most favourable loan offers from leading lenders in the country, including public sector banks, private banks, and NBFCs.

Key Highlights Of Existing GeM Sahay:

Instant loan disbursal

Frictionless financing

Easy registration via Udyam and Aadhar

Uncollateralized loan and without the need for buyers’ consent

Access to loan at the point of acceptance of an order on GeM platform

End-to-end digital process

Lending partners such as AU Small Finance Bank, ICICI Bank, Kotak Mahindra Bank, Lendingkart and Tata Capital, among others, are currently associated with the GeM Sahay app.