PNB inks deal with Indian Oil to provide up to Rs 2 cr loan to dealers

The firm has inked a pact with Indian Oil Corporation to provide up to Rs 2 crore to the oil company's dealers

State-owned Punjab National Bank (PNB) on Wednesday said it has inked a pact with Indian Oil Corporation to provide up to Rs 2 crore to the oil company's dealers.

Punjab National Bank (PNB) signed a memorandum of understanding (MoU) with India Oil Corporation Ltd to cater to the financing needs of the IndianOil dealers, the bank said in a release.

The MoU would benefit dealers with credit facilities at lower interest rates, nil margin, and with minimum or zero collateral requirements through the PNB e-Dealer scheme, it said.

Understanding the financial requirements and providing ease of banking services, PNB electronic dealer finance scheme is a tailormade credit lending product crafted for the Indian Oil dealers, the lender added.

The loan can be availed maximum up to Rs 2 crore with zero-margin. Also, PNB said it will not ask for any collateral security from those having dealership with Indian Oil of 5 years or more.

Existing proprietorship, partnership, LLP, company, trust, society having a valid dealership agreement with Indian Oil can avail the scheme.

"This MoU is of special significance as the Indian MSME sector is gearing up to serve the nation's growing demand in the post-pandemic times. PNB, with its offering of the most diverse and customised bouquet of products, is looking forward to bringing value to the entire ecosystem of dealer inventory financing starting with this best-in-class eDealer Scheme with IndianOil," Rajeev Puri, Chief General Manager, MSME Division, PNB, said.

This first of its kind deal will pave the way for future speciality financing products that PNB 2.0 look forward to unveil, Puri said.