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PNB Business Loan Interest Rate

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Updated: 06-04-2023 09:07:40 AM

Punjab National Bank is a banking and financial services company that caters to the individuals, as well as business proprietors to expand their businesses and enterprises. Punjab National Bank comes with a wide range of business loan options to meet the financial requirements of individuals and enterprises. PNB offers MSME loan interest rate that starts from 8.25% onwards, which is set at PNB’s one year MCLR. Interest rates may vary as per the loan amount, loan tenure, occupation, credit history and type of loan availed.

The basic loan amount, interest rate and various charges applicable in the PNB business loan are as follows:

                                                               PNB Business / MSME Loan Interest Rate
Interest Rate 8.25% onwards
Loan Amount Min. Rs. 50,000 and Max. Rs. 50 lakh
Repayment Tenure Max. up to 5 years
Pre-payment charges 2% on the outstanding pre-paid
Charges for late payment of EMI 2% to 4% per month on EMI/principal

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned fee & charges.

Check – Business Loan Interest Rate of Top Banks

Eligibility Criteria
Documents Required
Features and Benefits
FAQs

Eligibility Criteria

Punjab National Bank basically caters to Self-employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading or Services sectors. By providing business loan to these above mentioned entities, PNB ensure easy and smooth growth of these institutes and thereby contribute to the country’s GDP. Some pre-set eligibility criteria of PNB bank are as follows:

  • Minimum age has to be 21 years at the time of loan sanction and maximum of 58 years at the time of loan maturity.
  • Minimum 2 years of work experience; In case of self-employed, minimum 2 years of business continuity.
  • Good CIBIL score is required to avail loan at lower interest rate

Documents Required

To avail the business loan from Punjab National Bank, there are some valid documents needed at the time of the application procedure. The required documents of PNB business loan are mentioned below:

  • PAN card of individual, company or firm
  • Copy of Aadhaar card/Passport/Voter’s ID/Driving License for identity and address proof
  • Bank account details along with past 6 month’s bank statements
  • CA certified/audited balance sheet and the profit & loss statements of last 2 years
  • Latest duly audited ITR along with computation of income
  • Income tax return of last 3 years, a valid trade license, sales tax certificate, shops and establishments act certification, etc. as a proof of business continuation
  • Other mandatory documents like sole prop. Declaration or certified copy of partnership deed, certified true copy of memorandum & articles of association (certified by director) & board resolution (original)

Features and Benefits

Punjab National Bank holds some features and benefits which facilitate the borrower which are as follows:

  • Based on the eligibility, PNB offers loan of Min. Rs. 50,000 and Max. up to Rs. 50 lakh
  • Though it requires business profit of minimum 2 years
  • Borrower can prepay part of their loan any time after paying 2% prepayment charges
  • One can foreclose his/her entire Business loan any time after paying EMI’s at foreclosure charges with no prepayment charges

FAQs

Ques.1: What benefits PNB offer in business loan?

Ans: Punjab National Bank offers minimum 8.25% of interest rate with lower EMI per lakh. Apart from that, for the existing account holder, they have negotiation facility upon the selected deal.

Ques.2: How to check PNB’s business loan status?

Ans: If you have an account with the selected bank, you can check loan status online by login into your account. Otherwise, you can go to the branch and ask the manager to help you with information or if there is any assigned account manager to you, you can check with her/him.

Ques.3: Is age a factor counted to avail a business loan?

Ans: Yes. Age is considered as a primary eligibility criteria to sanction a business loan. One has to be 21 years by the time of applying for the loan and he/she shouldn’t exceed 58 years by the time of loan maturity.

Ques.4: How can I repay the PNB business loan?

Ans: You can pay the loan by equally monthly instalments (EMIs). Other than that there are repayment options of electronic clearing systems (ECS) or standing instructions (SI) to debit your PNB account with EMI account.

Ques.5: How to calculate interest/EMI on business loan?

Ans: After the finalization of your loan specification, you can go online to calculate your interest/EMI by providing the required information about your loan. Interest/EMI calculation helps you to know about your repayable amount in advance and therefore can be planned accordingly.

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