GeM Sahay

GeM Sahay, an initiative launched by Government e Marketplace  (GeM), brings a complete financing solution for sellers. GeM Sahay Scheme is a financing opportunity being made available to GeM sellers to avail financing against their GeM Purchase Orders (PO). The GeM Sahay will assist proprietorships to avail instant, frictionless financing to serve the Government orders without any hassle. Seller gets  loans instantly, uncollateralized, and without requiring the consent of any buyers.

The loan amounts can vary and be up to 80% of the Purchase Order Value. They will vary case by case depending on the Seller Profile. The loans will be disbursed instantly or the same day.

With GeM Sahay, GeM brings a revolutionizing change that’ll encourage and assist proprietorships to grow leaps and bounds with GeM. The top financial lending banks are Partnered with GeM Sahay  so that  proprietorships will get loans at the point of acceptance of an order at the best interest rates with easy registration via Udyam and Aadhar.

SAHAY will help proprietorships in selecting the orders that they would need to share with the lenders for availing of financing – ensuring lenders to offer loan offers on the shared orders in real-time.

GeM Sahay financing will be for a short tenure of 75 - 90 days on average.

Sellers who meet the following criteria can get a loan on the GeM Sahay:

1. GeM sellers who are sole proprietors with GST registered.

2. 4+ rating and transactions with GeM in the last 12 months

3.Enable API access in GSTN Portal (https://www.gstzen.in/a/enable-api-access-in-gstnportal.html)

4. Do not raise invoices for POs that you wish to finance

5. Ensure that POs are created at least 3 hours after opting for GeM Sahay in the profile section

6. Only POs with payment type PFMS, GeM Pool and CRPF Online account will show

7. For availing financing through a lender who is not your primary banker or through an NBFC on GeM Sahay platform, you must have an Udyam Certificate issued by the Ministry of MSME, India.

 Repayment

For GeM Sahay Financing, the recourse is on the seller. A new GeM Sahay Virtual Account will be created for the sellers when they sign up for GeM Sahay. This virtual account will receive the payments from the buyers when they pay against your financed Purchase Orders. The payment will be first used to clear the outstanding due to the lender and then remaining balance will be settled to your primary bank account on GeM.

For availing financing through GeM Sahay, a virtual account is created for a borrowing seller. It acts as an escrow account where the payment against a financed Purchase Order (PO) will first be transferred to when the buyer makes the payment against the PO. This helps lenders get repaid first from the payment buyer makes against the PO. The balance amount once the lender has been paid, is settled to the seller’s primary account on GeM. It is an account created by a GeM collection account partner and the Seller does not have to submit any documentation or take steps to create the account. It is auto created for the sellers that opt for GeM Sahay financing.