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Public sector lender, Punjab National Bank (PNB), on Wednesday signed a Memorandum of Understanding (MoU) with India Oil Corporation Ltd to cater to the financing needs of IndianOil dealers.

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.

The PNB electronic dealer finance scheme is a tailormade credit lending product for IndianOil dealers where loan up to Rs 2 crore with zero margin can be availed. Also, no collateral security will taken from the dealer who is having a dealership with IndianOil of five years or more. Existing proprietorships, partnerships, LLPs, companies, trusts, societies, etc. entity having a valid dealership agreement with IndianOil can avail the scheme.

At the MoU signing ceremony, Rajeev Puri, Chief General Manager, MSME Division, Punjab National Bank said: "This MoU is of special significance as Indian MSME sector is gearing up to serve the nation's growing demand in the post pandemic times. PNB is bringing value to the entire ecosystem of dealer inventory financing starting with this best-in-class eDealer Scheme with IndianOil. This first of its kind deal will pave way for future specialty financing products that PNB 2.0 look forward to unveil."