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Punjab National Bank MSME Loan

When any small, micro or medium enterprises think of improving their business, then MSME loans are the ones the company needs to look for. MSME loans are financial assistance provided to businesses looking for expansion, renovation, or any other improvement. Punjab National Bank is one of those lending banks which provides MSME loans.

List of Punjab National Bank MSME Loan

Here are the list of schemes provided by Punjab National Bank MSME Loan.

  • Additional Working Capital Limit to MSEs
  • PNB MSME Sahayak-scheme for financing against input tax credit claim under GST
  • PNB Weaver Mudra Scheme
  • Scheme for Financing Women for Any Activity for Income Generation-PNB VANITA
  • Scheme for Financing E-Rickshaws- PNB GREEN RIDE
  • Scheme For Financing MSME Service Units- PNB Seva
  • Scheme For Financing MSME Manufacturing Units- PNB Nirmata
  • Super Trade
  • PNB Sanjeevani : Scheme for Financing Professionally Qualified Medical Practitioners
  • SME Sahayog Scheme
  • PNB Artisan Credit Card - Scheme to provide hassle free financial support to Artisan
  • PNB Laghu Udyami Credit Card - A simplified Loan Delivery Mechanism
  • Scheme for Advances to Small Road Transport Operators
  • Scheme for Advances to Owner-Drivers of Taxi Cars, Three Wheeler, Station Wagons, Tempos, Etc.
  • PNB General Credit Card (GCC) Scheme
  • Scheme for Financing of Individual Business Correspondent (BC) agents deployed by the Bank for carrying out Financial Inclusion works
  • Scheme For Financing Against Pledge Of Warehouse Receipts Issued By Approved Collateral Managers
  • Schemes For Financing Against Pledge Of Warehouse Receipts In Electronic Form
  • PNB Dealer Suvidha
  • Financing To Stockists & Distributors Of Agriculture Inputs
  • Financing To Dealers Sellers Of Agriculture Inputs

ADDITIONAL WORKING CAPITAL LIMIT TO MSEs

The main purpose of this scheme is to assist in the temporary increase in the working capital due to seasonal or unforeseen increase in the products made by MSEs. The loan amount allowed under this scheme will be 10 % of the sanctioned limit. However, the loan amount will not exceed Rs. 10 lakhs. This loan can be requested by the existing and prospective MSE borrowers of the bank.

PNB MSME SAHAYAK-SCHEME FOR FINANCING AGAINST INPUT TAX CREDIT CLAIM UNDER GST

MSME borrowers having a working capital above 2 lakhs can apply for this scheme. The features of this scheme are-

Loan Facility: The loan can be availed under the working capital demand loan.

Loan Amount: The maximum loan amount allowed is 20 % of the existing working capital or 80 % of the input tax claim due on purchases, whichever is lower. The repayment of the loan should be done in the next 6 months after the moratorium period of first three months.

Security: As security, the bank will require the hypothecation of the assets bought with the loan amount. No collateral security is required under this scheme.

PNB WEAVER MUDRA SCHEME

The purpose of this scheme is to provide support to working capital requirements of the weaver. Any existing handloom weavers having a good bank track record can apply for this scheme. The features of this scheme are-

Loan: Under this scheme the loan amount can be given as cash credit or overdraft.

Loan Amount: The minimum loan amount is based on the need and the maximum can go up to Rs. 5 lakhs.

Govt. Support: The government supports the scheme by providing the margin. money. Subsidy is 20 % of the loan which can go up to a maximum of Rs. 10000. The interest subsidy up to 6 % should be borne by the borrower and anything excess to it will be borne by the Govt. up to a maximum of 7 % for 3 years from the date the loan amount was disbursed.

Mudra Card: Under this scheme Rupay card with a limit of Rs. 50000 will be issued. This card can be used by the weaver to withdraw cash from anywhere at any time.

Scheme for Financing Women for Any Activity for Income Generation-PNB VANITA

This scheme is to encourage women for better income generation in business like manufacturing, trading, services, and small businesses. Under this scheme the preference will be given to SC/ST/BPL category. The features of this scheme are-

Loan Amount: The maximum loan amount allowed is Rs. 25000 and this amount should be used solely for the purpose of setting a new unit, renovation of existing unit, expansion, etc.

Repayment: The loan should be repaid within 3 to 5 years with the moratorium period as 3 to 6 months maximum depending up on the type of business.

Security: As security, the bank need the asset bought out of the loan amount or borrower’s personal security. No collateral security is required.

Scheme for Financing E-Rickshaws- PNB GREEN RIDE

The purpose of this scheme is to assist transport operators of E-rickshaws and thus by providing more employment opportunities. This scheme can be allowed to any individual, sole proprietor, public ltd companies, partnership firms, etc. The borrower or the driver should have valid driving license and a permit issued by the appropriate authority for transportation of passengers and goods.

Loan Amount: For new E-rickshaw, the bank can allow a maximum of 85 % of the invoice price of the vehicle or 80 % of the on road price of the vehicle, whichever is less. For replacement of the battery after one year, the bank will give 85 % of the replacement cost.

Margin: Promoter’s contribution will be the highest among 15 % of the invoice price of the vehicle or 20 % of the on road price.

Repayment: The loan should be repaid within 33 months.

Security: The bank requires hypothecation of the vehicle bought out of the loan amount. No collateral security is required if covered under CGTMSE.

Scheme For Financing MSME Service Units- PNB Seva

The purpose of this scheme is to finance current assets and stock, receivables less than 3 months, and business expenses such as salary and wages. This scheme can be taken up by any individual, public or private limited companies, partnership firms, co-operative societies and Trust. The qualification of the applicant is also quite important for this scheme.

Loan: Under this scheme, loan can be given out as cash credit, overdraft, composite loan and term loan. As a term loan, the applicant can use the loan for acquiring fixed assets, equipment and infrastructure. Also this loan can be used for renovating existing units, creation of any additional infrastructure facilities, purchase of vehicle, etc.

Repayment: If the loan is taken as working capital ,then the customer should repay the amount within one year and renew the loan annually. If taken as a term loan, then the repayment period would be 5 to 7 years.

Security: As a security the bank will require hypothecation of the assets bought out of the loan amount.

Margin: For working capital facilities, the margin would be nil for cash credit up to Rs. 2 lakhs, 20 % for Rs. 2 lakhs to Rs. 5 lakhs, and 25 % for above 5 lakhs in case of hypothecation. For pledge, the margin would be 15 %, for book debts it is 25 % till 5 lakhs, and 30 % above 5 lakhs. For term loans used for buying land and construction, the margin would be 25 % and for using equipment, the margin would be nil up to 2 lakhs, above 2 lakhs till 5 lakhs would be 20 % and anything above that would be 25%.

Scheme For Financing MSME Manufacturing Units- PNB Nirmata

The purpose of this scheme is to cover the cost of components, raw materials, stores, marketing of the finished products, etc. by way of bills purchased and discounted, and book debts. This scheme can be allowed to individuals, public or private limited companies, co-operative societies, etc.

Loan: Under this scheme, the loan can be allowed as term loan for acquiring fixed assets, expansion of the units, modernization of the units, etc. The loan can also be allowed as working capital, cash credit, composite loan and overdraft.

Repayment: If the loan is taken as working capital, then the customer should repay the amount within one year and renew the loan annually. If taken as a term loan, then the repayment period would be 5 to 7 years.

Security: As a security the bank will require hypothecation of the assets bought out of the loan amount.

Margin: For working capital facilities, the promoter’s contribution would be nil for cash credit up to Rs. 2 lakhs, 20 % for Rs. 2 lakhs to Rs. 5 lakhs, and 25 % for above 5 lakhs in case of hypothecation. For cash credit pledge, the margin would be 15 %, for book debts it is 25 % till 5 lakhs, and 30 % above 5 lakhs. For term loans used for buying land and construction, the margin would be 25 % and for using plant and machinery, the margin would be nil up to 2 lakhs, above 2 lakhs till 5 lakhs would be 20 % and anything above that would be 25%.

Super Trade

The main purpose of this scheme is to meet the working capital requirements for trading activities by the traders or by service sector business people engaged in the trading of goods, materials, and equipment. This scheme can be allowed to all MSME entrepreneurs who are in the trading business of goods, materials, and equipment and also have financial statement showing satisfactory business for at least two preceding financial years.

Loan: The loan can be allowed as cash credit. The minimum amount the bank can allow is above Rs. 10 lakhs and the maximum is Rs. 500 lakh.

Margin: The promoter’s contribution wold be 25 % against the stock and book debts.

Security: The bank will require hypothecation of stocks and assignment of book debts as primary security. As collateral security, the bank will need at least 150 % of the loan amount in the form of mortgage of immovable property or any other liquid security charged to the bank.

PNB Sanjeevani : Scheme for Financing Professionally Qualified Medical Practitioners

This scheme can be taken up by qualified doctors and registered practitioners. The minimum qualification required for applying for this scheme would be MBBS, BAMS, BDS, BUMS, and BHMS. For constituents other than individuals and trusts, 75 % of the equity should be handled by qualified partners. The main purpose of this scheme is to finance the purchase of medical equipment, x-rays, CT scans, etc. The loan can be used for buying operation theatre equipment, ambulances, generators, refrigerators, software for diagnostic purposes, any other items to start a clinic, or nursing homes, etc.

Loan: The minimum amount which can be given as a loan amount is Rs. 1 lakh. However, the amount will be determined as per the need. The maximum amount would be Rs. 5 crores. The repayment period would be a maximum of Rs. 7 years.

Loan Type: The loan can be allowed as term loan and overdraft.

Margin: The margin rate would be 25 %.

Security: As security, the bank needs the hypothecation of the equipment, vehicles, or items bought from the loan. No collateral security is required for loans up to Rs. 10 lakhs. For amount over 10 lakhs up to Rs. 100 lakhs, no collateral security is needed if covered under CGTMSE, if not covered then the bank would require 100 % equivalent to loan amount in the form of mortgage of immovable property.

SME Sahayog Scheme

This scheme aims to meet unforeseen expenses of those SME enterprises which has good track record. With this scheme the enterprises can cover any contingencies such as purchase of raw materials for execution of bulk order, participation of any national or international trade exhibition, machinery repair, etc. This scheme can be allowed to those existing borrowers having standard assets for 3 consecutive years and have a credit limit of Rs. 20 lakhs.

Loan: The loan under this scheme can be allowed as cash credit. The maximum loan amount allowed is Rs. 25 lakhs.

Repayment: The repayment period is maximum 2 months and there should be a 15 days window between the repayment of the outstanding amount and the next withdrawal.

PNB Artisan Credit Card - Scheme to provide hassle free financial support to Artisan

The objective of this scheme is to provide financial support to Artisans by making the credit delivery easy and simple. All artisans in the field of production and manufacturing process and those who have a credit facility up to Rs. 2 lakhs are eligible for this loan.

Loan: The loan can be given as term loan and cash credit limit.

Security: As security, the bank needs the hypothecation of machinery, stocks, equipment, etc. bought out of the loan. No collateral security is needed if the loan is covered under CGTMSE.

Margin: Up to Rs. 2 lakhs, no margin in required.

PNB Laghu Udyami Credit Card - A simplified Loan Delivery Mechanism

The main purpose of this scheme is to provide hassle free financial support to Artisans, Village Industries, small Business units, Micro & Small Enterprises (Manufacturing & Services) & Tiny Units, Professionals and Self Employed Persons, etc. Anyone belonging to the said categories having a cash credit limit of Rs. 10 lakhs can apply for this scheme.

Loan: The loan under this scheme is given as cash credit. The maximum amount of loan allowed is Rs. 20 lakhs.

Cash Credit Assessment: For retail traders, and other businesses, the cash credit limit will be 20 % of the annual turnover and 50 % of the gross income as per Income Tax return for self-employed and professionals.

Margin: For Micro & Small enterprises other than trading the cash credit margin would be nil up to Rs. 2 lakhs, 15 % for loan from 2 lakhs to 5 lakhs, and 25 % for above 5 lakhs. For those in trading, it would be 30 % to 40 %.

Security: As security, the bank needs the hypothecation of machinery, stocks, equipment, etc. bought out of the loan. No collateral security is needed if the loan is covered under CGTMSE.

Scheme for Advances to Small Road Transport Operators

The aim of this scheme is to assist the transport operators in creating employment opportunities. This scheme can be taken up by any individual or association who owns transport vehicles for the purpose of carrying passengers or materials & goods on hire. Valid license and legal permit is also required for this scheme. The objective of this scheme is to assist in buying new or old vehicle manufactured by standard manufacturing companies.

Loan: For buying new vehicle the bank will allow 90 % of the invoice price as the loan amount.

Margin: Under this scheme the promoter’s contribution would be 10 % for new vehicles and 25 % for old vehicles.

Security: Hypothecation of the vehicle bought out of the loan is required as the security. The vehicle should be registered in joint names of the borrower and the bank under the Motor Vehicles Authority.

Collateral Security: For loans up to Rs. 10 lakh and those covered under CGTMSE does not require to give collateral security. For those loans above Rs. 10 lakhs and not under CGTMSE will require collateral security as mortgage of immovable property, Pledge of fixed deposits, KVPs, NSCs, Pledge of other securities such as debentures, shares, bonds, third party guarantee, etc.

Repayment: In case of new vehicles, the repayment period is 60 months and in case of old vehicles, the repayment period is 30 to 48 months.

Scheme for Advances to Owner-Drivers of Taxi Cars, Three Wheeler, Station Wagons, Tempos, Etc.

This scheme helps in providing self-employment opportunities to those licensed drivers by making easy credit for buying taxis, tempos, three wheelers, etc.

Margin: The margin for new vehicles for loans up to Rs. 25000 is nil and for above Rs. 25000, it is 10 %. For old vehicles, the margin is 25 %.

Security: The bank requires the hypothecation of the vehicle bought out of the loan as security. The vehicle should be registered in joint names of the borrower and the bank under the Motor Vehicles Authority.

Collateral Security: For loans up to Rs. 10 lakh and those loans covered under CGTMSE does not require collateral security. For those loans above Rs. 10 lakhs and not under CGTMSE will require collateral security as mortgage of immovable property, Pledge of fixed deposits, KVPs, NSCs, Pledge of other securities such as debentures, shares, bonds, third party guarantee, etc.

Repayment: In case of new vehicles, the repayment period is 48 months and in case of taxi cars, its 60 months. In case of old vehicles, the repayment period is 24 to 36 months.

Charges: Upfront fee for term loans up to Rs. 25000 is Nil. For loans above Rs. 25000 up to Rs. 2 lakhs, the charge is Rs. 270 and anything above Rs. 2 lakhs would be 1.25 % of the loan amount. The documentation charges up to Rs. 2 lakhs is nil and above 2 lakhs is Rs. 200 per lakh which can go up to a maximum of Rs. 25000.

PNB General Credit Card (GCC) Scheme

The purpose of this scheme is to increase the credit flow to individuals for business activity in the non-farm sector through General credit card.

Loan Amount: The maximum loan amount allowed under this scheme is Rs. 10 lakhs. However, the loan amount given will be based on the credit requirements and the repayment capacity of the customer.

Loan Type: The loan can be allowed as working capital and term loan which should be repaid within 12 months.

Scheme for Financing of Individual Business Correspondent (BC) agents deployed by the Bank for carrying out Financial Inclusion works

This scheme is for those individual BC’s deployed by the bank for implementing financial inclusion. The main aim of this scheme is to provide assistance to those IBC agents.

Loan: Under this scheme the bank can give a maximum of Rs. 75000 as loan amount out of which the borrower can use Rs. 50000 as term loan in buying laptops, webcam, printers, dongle, inverter, UPS, etc. The borrower can use Rs. 25000 as overdraft for settling the daily cash transactions.

Margin: No promoter’s contribution is required for this scheme. However, the rate of interest is 10.25 % as per the bank.

Repayment: If taken as term loan, the repayment period is 36 months including the moratorium period.

Security: The bank need the hypothecation of assets bought out of the loan amount. No collateral security is required if covered under CGTMSE.

PNB Professional Scheme

The purpose of this scheme is to provide credit to those persons who are professionally qualified to set up or enhance their practice, or taking up self-employment for service or manufacturing activities under MSME. Those who have professional degree, certification, or diploma under the below list are eligible for this scheme.

  • Engineering and Technical including software professionals
  • Business Management
  • Media & Journalism
  • Law
  • Foreign Language
  • Computer
  • Animation
  • Designing
  • Fine arts
  • Certified Tax Return Preparers (TRPs)
  • CA/ICWA/CS Etc.

The other features of this scheme are-

Loan: Under this scheme, the loan can be given as term loan or overdraft for service sector and term loan or cash credit for manufacturing sector. The minimum amount than can be given as loan is Rs. 1 lakh, irrespective of whether the loan is a term loan, overdraft, or cash credit. The maximum amount for overdraft is Rs. 25000 and for cash credit and term loan, the bank will decide as per the need.

Margin: The promoter’s contribution under this scheme, up to Rs. 2 lakhs, is nil and for above Rs. 2 lakhs, its 25 %.

Repayment Period: The repayment period for loans taken under this scheme is 7 years.

Security: As primary security, the bank will require the hypothecation of assets created out of the loan.

Collateral Security: For loans up to Rs. 10 lakh and those loans covered under CGTMSE does not require collateral security. For those loans above Rs. 10 lakhs and not under CGTMSE will require collateral security as mortgage of immovable property.

Scheme For Financing Against Pledge Of Warehouse Receipts Issued By Approved Collateral Managers

This scheme can be taken up by processors, farmers, export/importers who are in the business of non-perishable agricultural products.

Loan: The minimum loan amount given is Rs. 5000 and maximum is Rs. 50 lakhs to individuals and Rs. 25 crore to sole proprietorships. For all other borrowers, the bank will provide the loan as per FGM loaning power. The loan is given as demand loan and cash credit.

Margin: The promoter’s contribution is 20 % to 40 % depending upon the type of commodity financed.

Repayment: The repayment period under this scheme is 12 months maximum.

Security: Collateral manager issued pledge of warehouse receipts duly endorsed in bank’s favor in respect of goods and stocks stored by Farmers/Traders/ Processors etc.

Schemes For Financing Against Pledge Of Warehouse Receipts In Electronic Form

Loan: Under this scheme, the loan is provided as demand loan. The minimum amount is Rs. 50000 and the maximum is decided as per the need.

Margin: The promoter’s contribution is 25 %.

Repayment: If taken as demand loan, the repayment period would be 10 days prior to the expiry of the commodity as prescribed by NSPOT.

Security: The bank requires e-pledge of the commodity in favor of the bank. No collateral security required.

PNB Dealer Suvidha

This scheme provides financing to those dealers in the sale of agricultural implements and custom hiring services.

Loan: The loan is given as cash credit for sale of agricultural implements and as term loan and working capital for custom hiring services.

Margin: For sale of agricultural implements the margin is 20 % against stock and 30 % against book debts. For custom hiring services the margin is 25 % of the term loan and 10 % for existing dealers having good track record with the bank.

Collateral Security: 100 % loan amount in the form of mortgage of IP or other liquid security in case of sale of agricultural implements and for custom hiring services it is 50 % of the loan amount in the form of mortgage of IP or other liquid security.

Financing To Stockists & Distributors Of Agriculture Inputs

The purpose of this scheme is to finance stock not older than 6 months and book debts not over 3 months.

Loan: The loan will be given as per the need. However, the maximum amount allowed is Rs. 5 crore.

Repayment: The repayment period is one year and should be renewed annually.

Financing To Dealers Sellers Of Agriculture Inputs

The purpose of this scheme is to finance stock not older than 6 months and book debts not over 4 months. The loan can be availed by dealers or sellers in the business of agriculture inputs such as seeds, pesticides, fertilizers, etc

Loan: The loan will be given as per the need. However, the maximum amount allowed is Rs 5 crore.

Repayment: The repayment period is one year and should be renewed annually.

Eligibility Criteria of Punjab National Bank MSME Loan

The eligibility criteria is determined as per the scheme selected by the borrower.

Documents Required for Punjab National Bank MSME Loan

  • Identity Proof such as PAN card, Voter’s ID, Passport, Driving license, etc.
  • Business addresses.
  • Rent agreement, if business.
  • Proof of address such as passport, telephone bills, electricity bills, etc.
  • Photo copies of lease deeds, sanction letters from existing banks
  • Copy of VAT

Application Procedure of Punjab National Bank MSME Loan

You can apply for the MSME loan through the bank’s official site or you can visit Punjab National Bank branch near you.

FAQs on Punjab National Bank MSME Loan

1. How much of the CGTMSE Fee for PNB WEAVER MUDRA SCHEME will be borne by the Govt.?

For loan amounts up to Rs. 50000, the Govt. will bear 25% of the loan amount for 3 years.

2. What is the rate of interest for PNB Sanjeevani : Scheme for Financing Professionally Qualified Medical Practitioners?

The interest rate for PNB Sanjeevani : Scheme for Financing Professionally Qualified Medical Practitioners would be BR + 2.25 %.

3. What are the charges for Scheme for Advances to Small Road Transport Operators?

Upfront fee for term loans up to Rs. 25000 is Nil. For loans above Rs. 25000 up to Rs. 2 lakhs, the charge is Rs. 270 and anything above Rs. 2 lakhs would be 1.25 % of the loan amount. The documentation charges for Scheme for Advances to Small Road Transport Operators up to Rs. 2 lakhs is nil and above 2 lakhs is Rs. 200 per lakh which can go up to a maximum of Rs. 25000.

4. What is Book Debt?

Book debts are the sum of money that is receivable from debtors and others against the sale of goods and services.

5. What do you mean by Bank Overdraft?

Bank overdraft is a facility given by the banks to its current account holders where the account holder can borrow more money other than their own money which is repayable on demand.

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