GeM Sahay: Short-Term Financing for Sole Proprietors

GeM Sahay is a mobile application that offers short-term financing for Sole Proprietors registered on the GeM Platform. The program enables eligible Sole Proprietors to apply for and avail of short-term financing offered by Banks and Non-Banking Financial Companies (NBFCs) such as Kotak Mahindra Bank, UGRO Capital, and 121 Finance on the Purchase Orders received on the GeM portal. With participation from some of the top lenders in the country, GeM Sahay offers terms with interest rates ranging from 12% to 20% per annum (based on the credit profile), with tenures ranging from 60 to 120 days and up to 90% of the Purchase Order value. The application process is entirely digital, and if approved by the lender, the loan will be disbursed in as quickly as 10 minutes.

The service through the app is entirely free of charge, and no fee apart from the interest rate being charged by the lenders would be payable. To register for the service, Sole Proprietors need to “opt-in” for the GeM Sahay service in the profile section of their GeM portal account.