PNB Business Loan

Please Note: PNB is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

With effect from 1 April 2021, United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank.

Punjab National Bank (PNB), one of India’s oldest public sector banks, provides business loans to startups, entrepreneurs, as well as self-employed professionals with the aim to support their businesses’ capital requirements or expand business operations. The business loan interest rate offered by PNB depends on the applicant’s profile and business requirements, along with the applicant’s financial history, CIBIL score, and loan repayment history, etc.

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Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – January 2023

Note: Business loan interest rates are updated as on January 2023.

Eligibility Criteria

PNB offers a wide range of business loan schemes to its customers; therefore, the eligibility criteria applicable vary from one scheme to another.

Eligible Entities to avail PNB business loan: Individuals, SMEs, MSMEs, business owners, women entrepreneurs, self-employed professionals, sole proprietors, partnership firms, public and private limited companies and limited liability partnerships who are engaged only in trading, services and manufacturing sectors.

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PNB Business Loan Products/Schemes – January 2023

PNB offers an extensive range of products to various self-employed professionals and entrepreneurs of MSME and corporates as per their needs and business profiles to fulfil their loan requirements. Some of the well-known products are discussed below:

1. PNB Green Ride

• The scheme aims to financially support the transport operators of e-rickshaws and to create employment opportunities for the micro borrowers
• An individual, transport operator, sole proprietor, partnership firms, private and public ltd. companies, companies that plans to own transport vehicle(s) for transporting passengers or goods on hire can apply for this loan scheme
• The borrower must provide valid license for operating the vehicles and plying it for transporting passengers or goods
• The bank offers lucrative and affordable interest rates
• As far as the loan amount is concerned, for new E-Rickshaw, a maximum of 85% of the invoice cost of the vehicle or 80% of on road price, whichever is less will be sanctioned
• The advance with interest will be repaid in maximum 33 instalments
• For loans above Rs. 10 Lakhs, the vehicle purchased with the amount of the loan will remain hypothecated to the bank as security of the advance
• No collateral or third party guarantee is required for Green Ride loan of up to Rs.10 lakhs as these loans are to be covered under the CGTMSE (Credit Guarantee Scheme)

2. PNB Sanjeevani

• This loan is applicable for certified and registered doctors and medical practitioners having minimum qualification of MBBS/ BAMS/ BDS/ BHMS/ BUMS
• Individuals, Partnership, LLP, Private Limited, Limited Company, Trust can also take this loan
• The loan can be used to purchase medical equipment or to purchase, renovate, alter or furnish clinics, hospitals, nursing homes and medical centres
• Minimum Rs.1 lakh to maximum of Rs. 5 crore can be sanctioned under this scheme.
• Under this loan scheme, the term loan and overdraft facility is provided. The overdraft facility is for a maximum amount of Rs. 1 crore
• For online application of loan, a discount of 20% in processing fee is given
• For loans above Rs. 10 lakh, collateral or third party guarantee is not required
• Repayment tenure offered under this scheme is maximum up to 7 years with moratorium period of 18 months

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3. PNB Vanita

• Women involved in the business of manufacturing or trading or service can easily apply for this loan
• The bank will provide funds up to Rs. 25,000
• No collateral or guarantor is needed as the loan will be covered under CGTMSE for eligible activities
• Women belonging to BPL, SC or ST category will be given more preference
• Repayment tenure offered under this scheme is 3 years to 5 years with moratorium period of 3-6 months

4. PNB Professional Schemes

• This loan scheme is given to qualified professionals to start new ventures or expand an existing one. Medical professionals and traders are excluded from benefiting from this scheme
• Individuals, partnerships, LLPs, associations and private and public limited companies are also eligible
• Term Loan amount offered under this scheme starts from Rs. 1 lakh and maximum is need based
• Overdraft amount is minimum Rs. 1 lakh and maximum up to Rs. 25 lakh
• Cash credit is minimum Rs. 1 lakh and maximum is need based
• In case of term loan, the repayment period can go as high as 7 years including a maximum moratorium period of 6 months. The moratorium period might even extend to 18 months in specific cases
• The overdraft/CC facilities shall be sanctioned for the tenure of 1 year and shall be renewed annually

5. Super Trade

• Minimum loan amount offered is Rs. 10 lakh & Maximum loan amount is Rs. 5 crore
• This loan is provided to finance stock and book debts of not more than 4 months old
• All MSME entrepreneurs with satisfactory experience in trading activities of materials, goods or equipment can apply for this loan
• The borrower will have to submit financial records of at least 2 preceding financial years
• The bank will accept the hypothecation of stocks and assignment of book debts as the primary security
• As far as collateral security is concerned, minimum 150% (Realizable Value) of the loan amount in the form of mortgage of immovable property and/ or other liquid security duly charged to the bank

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6. MUDRA Loan under PMMY

• Mudra loan interest rate offered by PNB starts from 10.30% p.a. onwards
• Loan amount offered under this loan scheme is up to Rs. 10 lakh
• No collateral is required by the bank
• Nil processing fee is charges along with no foreclosure charges
• Mudra loan fund the non-farm business units to increase their income in trading, manufacturing, processing and service activities
• Any Individual, SME, MSME, Self-employed professional, LLP, Partnership firm, Private or Public Limited Company can apply for Mudra loan
• The borrower must not be a defaulter in any of the banks or financial institution

Note: With effect from 1st Dec 2022, Bank’s 1 year MCLR stands at 8.40%.

Also Read: How to take a loan under the Mudra Finance Scheme (MUDRA Yojana)?

List of MSME Loan Schemes from PNB – 2022

• CREDIT GUARANTEE SCHEME FOR SUBORDINATE DEBT (CGSSD)
• GUARANTEED EMERGENCY CREDIT LINE (GECL) 1.0, 2.0, 3.0 & 4.0
• LOAN GUARANTEE SCHEME FOR COVID AFFECTED SECTORS (LGSCAS) – HEALTHCARE SECTOR
• LOAN GUARANTEE SCHEME FOR THE COVID AFFECTED TOURISM SERVICE SECTOR (LGSCATSS)
• MSME PRIME PLUS
• PM SVANIDHI
• PNB ARTISAN CREDIT CARD
• PNB BUSINESS EXPRESS SCHEME FOR PATANJALI AYURVED LIMITED (PAL)
• PNB COMPRESSED BIO GAS (CBG) UNDER ‘SATAT’ SCHEME
• PNB e-GODAM- FINANCING AGAINST ELECTRONIC NRGOTIABLE WAREHOUSE RECEIPTS
• PNB ELECTRONIC DEALER SCHEME FOR IOCL
• PNB e-MUDRA (SHISHU) SCHEME
• PNB GENERAL CREDIT CARD
• PNB GST EXPRESS SCHEME
• PNB GURUKUL
• PNB JEEVAN RAKSHAK SCHEME
• PNB LAGHU UDYAMI CREDIT CARD
• PNB MAHILA UDYAMI
• PNB PROFESSIONAL
• PNB SAMPATTI SCHEME
• PNB SANJEEVANI
• PNB SATKAAR
• PNB SHIKHAR SCHEME
• PNB STANDBY LINE OF CREDIT
• PNB TATKAAL
• PNB TRANSPORT LOAN
• PNB WEAVER MUDRA CARD
• RESOLUTION FRAMEWORK 2.0 – RESOLUTION OF COVID-19 RELATED STRESS OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Also Read: What does the bank look at before giving a corporate loan?

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Documents Required

PNB offers a wide array of Business Loan Schemes to its customers. Each scheme has different eligibility criteria and documents requirement. The following set of documents are commonly required under the business loan schemes:

• Duly filled application form with Passport-sized photographs
• Business PAN card
• Identity proof and Address proofs, including Aadhaar Card, Voters Identity Card, Passport and Driving License
• Business Incorporation Certificate
• Last 12 months’ bank statement
• Last 2 years’ Balance Sheet, P&L statement, ITR and Sales Tax returns
• Any  other document required by the bank

Note: As per the scheme’s eligibility criteria or for further information, the bank might ask for more supporting documents.

Factors that affect PNB Business Loan Eligibility 

• Ability to duly repay loan on time: The bank will check that the businessperson must have a legitimate source of income and can repay the dues on time
• Credit score of the company or owner in case of a new venture: The bank will check company’s repayment history for all prior loans taken. A good credit history will help in getting the loan easily
• Track record of the existing business: Bank will evaluate the past transactions and company’s growth to understand if the company needs extra funding and can repay the same in due time
• Business stability: PNB requires the financial track record of businesses to assess their stability. It will evaluate the growth in sales over the past few years. If the sale is not up to their standards, the loan will not be sanctioned
• Profitability and turnover: Bank will require profit details of past 2 years. An organization’s profitability and revenue play an important role in determining if a company can be given a loan or not
• ITR and Banking details: PNB will require income tax returns and banking details for an already existing company, prior to sanctioning the loan

Customer Care 

Toll-free Numbers: 1800-180-2222 and 1800-103-2222
Tolled Number: 0120-2490000
Landline Number: 011-28044907

Email ID: care@pnb.co.in

In PNB, most business loan schemes can be prepaid by serving the prepayment charges of 1% of the loan amount plus GST (Goods and Services Tax). Customers can repay their dues in easy instalments every month via net banking, ECS or PDC. Being one of the primeval banks of India, PNB has a great brand value and available throughout the nation. Simple documentation and fast processing of loans makes it an ideal choice for business loan.

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FAQs

Q. Can I apply for a PNB business loan offline?
Ans. To apply for PNB business loan, you need to visit the official website of PNB and click on MSME loan to apply.

Q. What is a term loan in PNB?
Ans. Term loan is a short or long-term loan that can be repaid in defined time duration set by the bank in the form of EMIs.

Q. What is Working Capital Financing in Punjab National Bank?
Ans. The working capital financing in PNB is a working capital loan offered to meet the day-to-day business requirements and various business purposes, such as business expansion, buying machinery/equipment, purchase of raw materials, paying-off rent, etc.

Q. What are the minimum and maximum tenure of PNB business loan?
Ans. The PNB business loan repayment tenure ranges between 12 months to 5 years.

Q. How much loan amount can I avail from Punjab National Bank?
Ans. The minimum loan amount offered by PNB is Rs. 25,000 and maximum goes up to Rs. 5 crore.

Q. What is the processing fee for business loans in PNB?
Ans. The processing fee of business loans varies from loan amount, business requirements and applicant’s profile.

Q. Are there any special Punjab National Bank business loan schemes for women to set up a business?
Ans. PNB offers various loan schemes for women entrepreneurs that include PNB Vanita, Mudra loan and PNB Professional pages.

Also Read: Top 5 Startup Business Loan Schemes For Women Entrepreneurs In India

Q. Is there any collateral/ security do I need to provide to avail a Business loan?
Ans. Collateral or security depends on the type and nature of business loan. All unsecured business loans do not require any collateral and secured business loans can be availed only after depositing collateral or security.