Punjab and Sind Bank Business Loan

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Punjab & Sind Business Loan Interest Rates

The interest rate for Punjab & Sind Business Loan starts from 9.30% p.a. The business loan interest rates offered by the lender for its various business loan schemes are as follows:

Particulars	Interest Rate ( p.a.)
PSB Krishak Mitra	Up to Rs 1 crore – 9.50% Above Rs 1 crore – 9.70%
PSB Commercial Vehicle	Up to Rs 10 lakh – 9.75% Above Rs 10 lakh – 9.05% – 14.05%
PSB Doctors Special	9.30%

Types of Punjab and Sind Business Loan 

PSB Krishak Mitra 

Purpose – Punjab & Sind Bank offers PSB Krishak Mitra scheme to finance the working capital requirements of commission agents, distributors, dealers and stockists for maintaining stocks of agricultural inputs like fertilizers, seeds, pesticides, dairy feed/ poultry feed/ cattle feed, etc.

Loan Amount – Rs 5 lakh to Rs 2 crore

Types of Loan Facilities Offered: Working Capital/ Overdraft Privilege

Margin –

• For working capital – Stock 25%, against book debt 35%
• For overdraft privilege – 35%

Rate of Interest –

• Up to Rs 1 crore – 9.50% p.a.
• Above Rs 1 crore – 9.70% p.a.

Repayment Tenure-
For working capital – 12 months for On demand or Operative limit ( Subjective to Annual Renewal)

Security/ Guarantee –
Any suitable collateral security or third party guarantee to be taken.

PSB Pradhan Mantri MUDRA Yojana

Purpose-  Punjab & Sind Bank offers Pradhan Mantri MUDRA Yojana to provide  loans to the micro enterprises engaged in business like trading, manufacturing and service sectors, including agricultural activities.

Loan Amount – Up to Rs 10 lakh

Margin –

• For Shishu category – 10%
• For Others – 25

Security – No security or guarantee needed

Stand-Up India Scheme

Purpose- Punjab & Sind bank offers Stand-Up India Scheme to finance the business requirements of SC/ST borrowers, women entrepreneurs, or enterprises with shareholding of 51% to SC/ST or women borrowers, for setting up a Greenfield enterprise.

Loan Amount –
Composite loan (Term Loan + Working Capital) – Rs 10 lakh to Rs 1 crore

Margin – Minimum 10%

Repayment Tenure – Maximum 7 years with moratorium period of up to 18 months

Security- The scheme will be covered under the Credit Guarantee Scheme for Stand-Up India or Collateral security as per the bank policies.

PSB- MSME Standby Line of Credit

Purpose –  Punjab & Sind Bank offers MSME Standby Line of Credit to businesses owned by individuals/sole proprietorship/partnership firm/limited companies/HUF or any other entity engaged in activities covered under the MSME scheme. This loan helps them deal with their temporary liquidity mismatch.

Loan Amount – Up to 25% of the existing working capital limit up to  Rs 1.5 crore

Margin – NIL

Repayment – Up to 12 months

PSB PMEGP (Prime Minister’s Employment Generation) Scheme

Purpose- Punjab & Sind Bank offers PSB PMEGP (Prime Minister’s Employment Generation) Scheme to provide finances to generate more employment opportunities in the rural and urban areas through setting up new self-employment ventures/ projects or micro enterprises.

Loan Amount –

• Maximum Rs 50 lakh for projects /units admissible under manufacturing sector
• Maximum Rs 20 lakh for projects/units under business/ service sector

Margin –

• General Category – Up to 10%
• Special Category – Up to 5%
  
  

Repayment tenure –

• Above 3 years and up to 7 years
• Subsidy – General Category – Up to 25%
• Special Category – Up to 35%

PSB Commercial Vehicle

Purpose- Punjab & Sind Bank offers Commercial Vehicle scheme to finance the purchase of new commercial vehicles for business like trucks, buses, tempos, tankers, taxi, three or four wheelers and other mass transportations subject to the approval by the competent authority for commercial purposes.

Loan Amount – 80% of the vehicle cost, one time registration charges & road tax and insurance charges.
Maximum limit sanctioned under the scheme is Rs 2 crore

Margin- 20% margin cost of the vehicle (cost of chassis, pre-assembled, cost of body), one time registration, Insurance charges and Road Tax

Repayment Tenure-

• Maximum 3 months from the date of disbursement of moratorium period
• Loan to be repaid in EMIs (Equated Monthly Installment) in maximum 5 years

Debt Service Coverage Ratio ( DSCR) – Minimum requirement shall be 1.25:1

Rate of Interest –

Loan Amount	Internal Rating	Spread	Effective EBLR (p.a.)
Up to Rs 10 lakh		1.30	9.75%
Above Rs 10 lakh	1	0.60	9.05%
	2	0.65	9.10%
	3	0.70	9.15%
	4	0.80	9.25%
	5	1.95	10.40%
	6	2.05	10.50%
	7	5.60	14.05%

Security –
Primary Security – Hypothecation of the vehicle that is to be purchased

Collateral Security –

• For loans of up to Rs 10 lakh: No collateral is required.
• For loans above Rs 10 lakh and up to Rs 25 lakh: A minimum of 25% of the sanctioned amount is required as collateral security. (Except for cases under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE))
• For loans above Rs 25 lakh: A minimum 50% of the sanctioned amount is required as collateral security. (No collateral required if the case is covered under the CGTMSE scheme)

Penal Interest – 2% over and above the contracted rate shall be charged for default repayment on loan installment as per the fixed repayment schedule.

PSB Doctors Special

Purpose – Punjab & Sind Bank offers Doctors Special scheme to finance the doctors to set up/acquire/construct/expand or renovate their clinic, hospital, pathological, clinical labs, diagnostic centers, nursing home, sanatorium, etc. This includes furniture fixtures and equipment, purchase of vehicles, ambulances, computers, etc. for the business.

Loan Amount –

• Rs 5 lakh – Rs 5 crore
• For working capital: Up to Rs 20 Lakh

Margin –

• Term Loan – 25% of equipment’s/machinery/vehicles
• Working Capital – 25% on Stocks and 40% on book debts
• Commercial Vehicles – 15% of on road price with one time road tax, registration & insurance

Security – Hypothecation of the assets purchased with the help of bank’s finances

Collateral Security –

• For loans up to Rs 10 lakh – No third party guarantee required or collateral security required and it will be covered under CGTSME
• For loans above Rs 10 lakh and up to Rs 2 crore – Collateral security in the form of immovable property or liquid security such as NSC, surrender value of LIC policies, deposits, which is 100% equivalent of the total exposure. Or the loan may be covered under CGTMSE.
• For loans above Rs 2 crore and up to Rs 5 crore – Collateral security in the form of immovable property or liquid security such as NSC, deposits or surrender value of LIC policies equivalent to 100% total exposure.

Interest Rate – 9.30 % p.a.

Concession – 0.20% of concession for women/ST/SC applicants where the doctor is the sole applicant or in the case of partnership with form/LLP/companies/ trusts with a minimum of 51% of shareholding/ stakes held by ST/SC/Women doctor(s).

Guarantee- If covered under CGTMSE, No guarantee is required and in other cases guarantee of spouse/major children/partner/trustees or any suitable third party will be obtained.

Processing Fee-

• Up to Rs 50 lakh – 0.25% of the loan amount
• Above Rs 50 lakh and up to Rs. 2 crore- 0.50% of the loan amount

Repayment –

• For Term loan: Up to 7 years including the moratorium period of 2 years or construction period in case of construction.
• For Working Capital: Repayable on demand.

Punjab & Sind Business Loan Eligibility Criteria

The business loan eligibility criteria set for availing Punjab & Sind Business Loans are as follows:

PSB Pradhan Mantri MUDRA Yojana

Any Indian citizen with an income generating business plan.

Stand-Up India Scheme
Any individual who is ST/SC or a Woman or an enterprise that holds a shareholding of 51% to any woman or ST/SC to set up a greenfield enterprise.

PSB PMEGP Scheme

• Any individual above the age of 18 years.
• The individual should have 8th standard pass educational qualification for setting up projects of above Rs 10 lakh in manufacturing sector and Rs 5 lakh in the business/service sector.
• Self-help groups are also eligible under the scheme.
• Units that are registered under the Prime Minister Rozgar Yojana, Rural Employment Generation Programme or any other scheme of the Government of India or State Government and the units that have already availed the Government subsidy under the Government of India or State Government are not eligible.

PSB Commercial Vehicle

Any individual, proprietorship/ partnership firm/ limited company, society, trust, association owning and operating or proposing to own and operate transport vehicles for carrying passengers or goods.

PSB Doctors Special

Any medical practitioner registered with statutory bodies like DCI, MCI, CCIM, CCH etc. with a minimum qualification MBBS, BDS, BPT, BAMS or any professional degree.

Processing Fee and Charges for Punjab & Sind Business Loan

The fees and charges for availing Punjab & Sind Business Loans are mentioned below:

Particulars	Processing Fee
PSB Krishak Mitra	0.50%, subject to a minimum of Rs 500
PSB Pradhan Mantri MUDRA Yojana	For loans up to Rs 5 lakh – NIL For loans above Rs 5 lakh – 0.50% -1.00% ( Based on the type of loan facility)
PSB – MSME Standby Line of Credit (PSB SLC)	No fee is charged on the proposed limit
PSB Commercial Vehicle	1% of the loan amount + GST