GeM to roll out mobile app to facilitate MSME sellers get instant loans
The number of MSEs registered on the GeM platform has increased by over 62 percent since the last FY (2019-20). In FY2016-17, 3000 MSMEs were registered on GeM.
Public procurement portal Government e-Marketplace (GeM) is launching ‘SAHAY’, a mobile application to help the MSME sellers listed on the GeMSAHAY app get instant loans.
"To address the credit access challenges faced by MSMEs a latest functionality also being rolled out specially for SMEs is the GeMSAHAY app," Ministry of Commerce & Industry said in a statement.
The #GeMSAHAY initiative paves way for frictionless financing by leveraging fintech. MSEs can now get a loan at the point of acceptance of an order on the #GeM platform. It will help in meeting the working capital needs and ensure “access to finance” for MSEs, the statement added.
Indian Software Product Industry Round Table (iSPIRT), a non-profit tech think tank’s volunteer team is collaborating with GeM for the implementation of the GeM- SAHAY project.
Speaking at a media interaction, Anup Wadhawan, Secretary, department of Commerce said that GeM is providing increasing market access to seller groups like MSEs, Women SHGs, Startups reinforcing the Make in India Initiative and Govt of India’s policy to promote local MSEs.
He further noted that presently GeM has over 6,90,000 MSE sellers and service providers onboard which are contributing over 56 percent of the total order value on GeM.
As per the statement, the number of MSEs registered on the GeM platform has increased by over 62 percent since the last FY (2019-20). In FY2016-17, 3,000 MSMEs were registered on GeM.
In order to promote local products through the “Vocal for Local” initiative, the Government has made it mandatory for all sellers on GeM to list the Country of Origin while registering products, the ministry said.
Furthermore, GeM has also started highlighting the Local Content on the product description page prominently. So even within the products made in India, buyers can identify products that have higher local content.
GeM is an online platform for public procurement. It was launched on August 9, 2016 by the Ministry of Commerce and Industry. All public sector agencies are mandated to directly purchase common-use goods and services through the online portal.
"Since its inception, GeM has facilitated 67.27 lakh orders worth 111,113 Crores from 18.85 lakh registered sellers and service providers for 52,275 Govt buyers," the ministry said.