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Punjab and Sind Bank MSME Loan

MSME loans are a certain type of financial assistance for those who are looking for business improvement. MSME loans are for micro, small, and medium enterprises where the business people can get adequate financial support. RBI defines MSME as unsecured loans and Punjab and Sind Bank has been one of the leading banks offering MSME loans.

List of Punjab and Sind Bank MSME Loan

Here is the list of schemes provided by Punjab and Sind Bank MSME Loan.

  • Credit Linked Capital Subsidy Scheme (CLCSS)
  • Scheme for Technology Up-gradation/Establishment/Modernization of Food Processing Industries
  • Multipurpose Business Loan (Mortgage) Scheme
  • Doctor's Special
  • Artisan Credit Card (ACC) Scheme
  • Laghu Udhyami Credit Card (LUCC) Scheme
  • Udyogni Scheme for Women Entrepreneurs
  • Scheme for finance to Restaurants/ Dhabas
  • Scheme for finance to brick kiln owners
  • PSB Scheme for Eating-Joints
  • PSB Scheme for Working Capital requirement for Retail Traders
  • PSB Mortgage Loan
  • PSB SME Liquid Plus
  • PSB Vyapar Loan

Credit Linked Capital Subsidy Scheme (CLCSS)

This scheme targets by giving technology up-gradation by using the upfront capital subsidy to the MSME. This enterprise includes Khadi, Coir and village units and they can use this scheme for the modernization of the plant and machinery and other techniques. The features of this scheme are

Loan Amount: The maximum term loan amount allowed is Rs 100 lakhs

Capital Subsidy: 15 % of the eligible investments will be given as capital subsidy in Plant and Machinery or Rs 15 lakhs, whichever is lower.

The scheme covers the below-mentioned products, technology needs, and sub-sectors which are eligible for claiming capital subsidy

  • Biotech Industry
  • Dyes and intermediates
  • Industry based on Medical & Aromatic plants
  • Common Effluent treatment programme
  • Corrugated Boxes
  • Drugs & Pharmaceuticals
  • Plastic Moulded/components/extruded products and parts
  • Dimensional Stone Industry (excluding Quarrying and mining)
  • Glass & ceramic items including tiles
  • Leather & Leather products including footwear and garments
  • Rubber Processing including cycle / Rickshaw tyres
  • Food Processing including Ice cream manufacturing
  • Fans & Motor industry
  • General light service (GLS) Lamps
  • Information technology (Hardware)
  • Poultry Hatchery /& Cattle feed industry
  • Electronic equipment viz. test, manufacturing, industrial process control/measuring and assembly/analytical, medical, electronic consumer & communication equipment etc.
  • A mineral filled sheathed heating elements
  • Transformer/chokes including Solenoid coils/Laminations Coils/Electrical Stampings
  • Forging & Hand tools
  • Foundries Steel & Cast iron
  • General Engineering works
  • Wires & cable industry
  • Auto parts & components
  • Bicycle parts
  • Combustion devices/appliances
  • Wooden furniture
  • Gold plating & Jewellery
  • Locks
  • Steel furniture
  • Toys
  • Non-ferrous foundry
  • Sport goods
  • Cosmetics
  • Readymade garments
  • Mineral water bottle
  • Steel Re-Rolling and /or Pencil ingot making industries
  • Zinc Sulphate
  • Welding Electrodes
  • Sewing Machine industry
  • Paints varnishes, Alkyds and Alkyd products
  • Agricultural implements and post-harvest equipment
  • Beneficiation of Graphite and phosphate
  • Khadi & Village industries
  • Coir & Coir products

Scheme for Technology Up-gradation/Establishment/Modernization of Food Processing Industries

Under this scheme, the business can get up to 25% of the cost of plant and machinery as financial assistance. The maximum amount given can go up to Rs 50 lakhs, only if the plant and machinery are new. The features of this scheme are

Coverage: The scheme covers food processing sectors such as Vegetables, fruits, milk products, rice milling, flour milling, meat, poultry, fishery, oilseeds products, pulse processing and other horticulture sectors such as spices, mushrooms, coconuts, etc. The scheme will not provide financial assistance for the business of aerated water, soft drinks, and packaged drinking water.

Loan Disbursement: Under this scheme financial assistance will be given out as two equal instalments. Once the business uses 50% of the term loan and 50% of the margin, the first instalment will be released and upon submitting utilization certificate by the unit, the second instalment will be released.

Multipurpose Business Loan (Mortgage) Scheme

This scheme aims at retail/wholesale traders, self-employed, professionals, contractors, and other small and business enterprises. The features of this scheme are

Loan: Under this scheme, the loan amount can be given as term loan, cash credit, overdraft, bank guarantee, letter of credit, etc.

Loan Amount: The minimum loan amount is Rs 1 lakh and the maximum is Rs 200 lakhs.

Margin: The promoter’s contribution would be 65 % of the value of immovable property for new and fresh enterprises. In the case of old cases, the percentage can go up to a maximum of 75 %.

Security: As security, the business will have to give

  • Hypothecation of assets such as stocks, plant & machinery, receivables etc.
  • Registered or equitable mortgage of land and building free from encumbrances in the name of the business partner, director, or the borrower.
  • If the loan property is in the name of family blood relatives then advance against third party property can be provided.

Stock Statements: The borrower should submit the book debt statement/ stock statement at the time of sanctioning the loan and should continue to submit the same once in a year.

Doctors Special

This scheme is for doctors having a minimum qualification in MBBS/ BDS. The objective of this scheme is to help financial assistance in setting up, renovating, expanding clinics, building nursing homes, and purchase of ambulances, computers, and vehicles. The features of this scheme are

Loan: The loan under this scheme can be allowed as a term loan, overdraft, and cash credit.

Loan Amount: The maximum loan amount allowed is Rs 1 crore. However, for a loan as overdraft or cash credit, the hypothecation limit is set to Rs 10 lakhs.

Margin: The promoter’s contribution is 15 %

Security: As security, the doctors or hospitals should give hypothecation of movable assets and in case of immovable assets, legal mortgage or equitable in the name of children or spouse or self.

Collateral Securities: For loan amount up to Rs 25 lakhs, no collateral security is required, provided the coverage is under CGTMSE. Any amount above 25 lakhs up to Rs 1 crore, the collateral security will be decided by the bank according to their policy.

Guarantee: If covered under CGTMSE and if the amount is up to Rs 25 lakhs, then no guarantee is required. For amount above Rs 25 lakhs up to Rs 1 crore, a third-party guarantee is required. If there is more than one owner, then the other owner’s guarantee must be obtained.

Additional Benefit: On locker rent, 50% concession can be given to self and spouse for the first two years.

Artisan Credit Card (ACC) Scheme

The purpose of this scheme is to provide timely financial assistance to artisans for their investments and working capital requirements. The scheme is operative in both rural and urban areas.

Loan Amount: The maximum loan amount the bank can allow is Rs 2 lakhs.

Margin: Promoter’s contribution is not required for a loan up to Rs 25,000 and above Rs 25,000 the margin would be 25%.

Security: The bank requires hypothecation of the assets bought out of the loan amount.

Card Issuance: The bank will issue a photo card to the customer mentioning the sanctioned limit and validity of the credit facility. The customer will also be given a cheque book with ACC account mentioned. This credit card will be valid for 3 years.

Laghu Udhyami Credit Card (LUCC) Scheme

This scheme is for small business units, artisans, professionals, self-employed persons, retail traders, and village industries if they have successful dealing with the bank for the last three years. The features of this scheme are

Assessment of credit card Limit: The card limit is as follows

  • For small business and retail traders, etc. the highest between last one year’s turnover in the operative account or 20% of the annual turnover which has been declared for tax purposes.
  • For self-employed and professionals, 50% of the gross annual income as per Income Tax return will be considered as the card limit.
  • For small scale industrial units, the assessment terms in vogue will continue as per the Nayak Committee recommendations.

Loan Amount: Up to Rs 10 lakhs will be allowed per borrower.

Security: The primary security will be the hypothecation of the stock bought out of the loan and the collateral securities will be the existing securities.

Udyogni Scheme for Women Entrepreneurs

As the name suggests, this scheme is to encourage women entrepreneurs. Enterprises which have been managed by one or more women are eligible for this scheme.

Loan Amount: The loan amount will be assessed according to the purpose of the loan.

Margin: The promoter’s contribution up to Rs 25000 is nil.

Security: Up to Rs 25,000, no collateral security is required. However, hypothecation of the assets bought out of the loan will be taken as security. For loan above Rs 25,000, the scheme will require hypothecation or pledge of the assets bought out of bank loan, a guarantee of third party or spouse, collateral security in the form of building or land having double the value of loan is required.

Scheme for finance to Restaurants/ Dhabas

This scheme mainly aims at restaurants and other fast-food chains. Any individuals, corporate, or partnership firms can opt for this scheme.

Loan Limit: The loan will be limited for the below

  • For purchase of Kitchen equipment
  • For investment in Interior decoration
  • For purchase of furniture and fixtures
  • For purchase of land and construction of buildings
  • For meeting running expenses.

Loan: The loan can be allowed as term loan or overdraft.

Loan Amount: The scheme can allow a maximum of Rs 1 crore if taken as term loan and Rs 5 lakhs if taken as an overdraft.

Security: As security, the bank will require the hypothecation of the assets bought out of the loan. As collateral securities, the bank can accept personal guarantees of the promoters, partners, proprietors, fixed assets, an extension of current assets, etc. Up 10 lakhs covered under CGTMSE does not require collateral security or third party guarantee.

Scheme for Finance to Brick Kiln Owners

The target group for this scheme would be all the existing and prospective owners of Brick Kilns. This scheme can be allowed to corporates, proprietorships, partnership firms and individuals.

Loan: The loan under this scheme can be allowed as term loan and working capital.

Loan Amount: The loan amount will be decided according to the project cost. However, the maximum amount is set to Rs 50 lakhs.

Securities: Hypothecation of assets bought out of the loan need to be given as primary security. As collateral security, the bank can accept a personal guarantee of promoters, proprietors, and partners. Also, the bank can accept immovable property and bank deposits as collateral security. If covered under CGTMSE, no collateral guarantee is required.

PSB Scheme for Eating-Joints

This scheme aims to give financial support to eateries such as restaurants, Ice-cream parlours, meat shops, bakeries, etc. The features are

Loan: The loan can be allowed as a term loan or working capital. The customer has to repay the loan within 60-72 EMIs.

Loan Amount: The loan amount given will be equal to 4 months sale. The maximum amount of loan allowed for individual borrowers and partnership firms will be Rs 5 lakhs and Rs 10 lakhs respectively.

Margin: The promoter’s contribution will be 15-25%.

Guarantor: The bank can accept an independent person with good integrity as a guarantor.

Security: As collateral security, the bank needs 150% of credit limit and 100% in case of Govt. securities or NSC/Life insurance policies.

PSB Scheme for Working Capital requirement for Retail Traders

This scheme is for retail traders

Loan Amount: The maximum loan amount is Rs 30 lakhs as per existing guidelines. As per amended guidelines, the maximum limit is Rs 10 lakhs, Rs 20 lakhs, and Rs 30 lakhs for Rural, Semi-urban, and metropolitan respectively.

Stock Statement: Up to Rs 10 lakhs, the customer will have to submit the stock statement once a year and above Rs 10 lakhs till Rs 30 lakhs the submission should be on a monthly basis as per existing guidelines and once a year as per amended guidelines.

PSB Mortgage Loan

This scheme can be termed as an all-purpose credit facility which means, the scheme can be used for all legitimate expenses. The scheme targets Income Tax assesses within the age limit of 18 years and 65 years.

Loan Amount: The minimum amount allowed can be Rs 5 lakhs and the maximum is Rs 500 lakhs. The repayment period if the amount is taken as a term loan is 10 years maximum and if taken as an overdraft, repayment should be done upon demand. Overdraft facility is not available for salaried class.

Rate of Interest: The interest rate is as follows-

  • For term loan for MSME is 1-year MCLR + 2.50 %
  • For term loan other than MSME is 1-year MCLR + 2.75%
  • For Overdraft, for MSME the rate is 1-year MCLR + 2.25 %

Guarantee: Under this scheme, the guarantee is not compulsory.

PSB SME Liquid Plus

This scheme is for all MSME in the manufacturing and services sector. The MSME could be a partnership, individual, co-operative society, or public or private limited company.

Loan Amount: The minimum amount allowed can be Rs 10 lakhs and the maximum is Rs 500 lakhs. If taken as a term loan, the repayment period is 7 years maximum. If given as overdraft, then the amount should be repaid when demanded.

Rate of Interest: The interest rate is as follows

  • TL repayable up to 5 years is 1-year MCLR + 1.85%
  • TL repayable above 5 years is 1-year MCLR + 2.05%
  • For Overdraft, the rate is 1-year MCLR + 1.60%

Guarantee: The bank will require a personal guarantee of the property owners or spouse, directors, or partners.

PSB Vyapar Loan

This scheme is to provide financial support for any business purpose requirement of the business concern. This scheme can be taken by retail traders, wholesale traders, professionals, self-employed persons, partnership firms, etc.

Loan Amount: The minimum loan amount is Rs 5 lakhs and the maximum is Rs 500 lakhs. If taken as term loan repayment period is 10 years and if as working capital, its 5 years. If given as overdraft, then the amount should be repaid when demanded.

Rate of Interest: The interest rate is as follows

  • WCTL repayable up to 5 years is 1-year MCLR + 2.25%
  • TL repayable up to 10 years is 1-year MCLR + 2.75%
  • For Overdraft, the rate is 1-year MCLR + 2.00%

Guarantee: The bank will require a personal guarantee of the property owners or spouse, partners, or directors.

Eligibility Criteria of Punjab and Sind Bank MSME Loan

There are no eligibility criteria for Punjab and Sind Bank MSME Loan

Documents Required for Punjab and Sind Bank MSME Loan

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

Application Procedure of Punjab and Sind Bank MSME Loan

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

FAQs on Punjab and Sind Bank MSME Loan

1. What is the promoter’s contribution under Laghu Udhyami Credit Card (LUCC) Scheme?

The promoter’s contribution under Laghu Udhyami Credit Card (LUCC) Scheme will be 25 %

2. What is the validity period of Laghu Udhyami Credit Card (LUCC) Scheme?

The validity period of Laghu Udhyami Credit Card (LUCC) Scheme is 3 years.

3. What is the rate of interest for PSB Scheme for Eating-Joints?

For loans up to Rs.2 lakh, the interest is PLRF and above Rs 2 lakhs, its PLR plus 1 %.

4. What are the processing charges under PSB Vyapar?

The processing charges if TL/WCTL facilities are 1% of the loan amount with Minimum of Rs.2000. For OD facilities .50 % of the limit sanctioned.

5. What do you mean by promoter contribution?

Promoter contribution is the certain percentage of the loan amount which the lender need to invest from their personal funds.

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