StartupYo

How to get Business Loan in Punjab National Bank (PNB) Business Loan - Benefits, Features, Documents, Eligibility

 

It is among the major banks owned and operated by the government. It is specialized in lending finances to new businesses, and individuals, including independent professionals. Among other services, the bank provides loans to small businesses and individuals to help meet their monetary needs and to enhance their business performance. 

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

Apply for Business Loan

Punjab National Bank (PNB) Business Loan




 

It is among the major banks owned and operated by the government. It is specialized in lending finances to new businesses, and individuals, including independent professionals. Among other services, the bank provides loans to small businesses and individuals to help meet their monetary needs and to enhance their business performance.

 

When deciding the interest rate, the bank takes several factors into consideration. Information about the consumer’s creditworthiness, financial status, the amount demanded by the business, credit scores, and repayment records.

 

 Features of business loans from Punjab National Bank

 

On business loans, PNB offers a range of advantageous features, such as an easy application and approval process, competitive interest rate, and long and reasonable repayment terms. The loan terms vary according to several factors. Below are some features that are associated with obtaining a business loan from PNB:

 

  • Online eligibility check and loan processing in real-time: The Company offers an online eligibility check to prove that you qualify for their business loan. It takes hardly any time at all. In most cases, funding is available within 3 to 4 days of approval, depending on the amount of debt requested, history of previous loan repayments, etc.

 

  • The flexibility of repayment tenure: PNB allows consumers to choose from their customizable timeframe for loan repayment lasting anywhere from 1 to 5 years.

 

  • Balance transfer for a loan: Reduce your monthly payments by shifting your current business financing to PNB and spend less on your interest payments.

 

  • Coverage for accidents: In case of the death of the borrower, the loan amount will be covered by the insurance. The amount lent is calculated into the premium for the insurance.

 

  • Pre-approved offers: Affordably priced pre-approved offers and attractive interest rates.

 

  • No hidden charges: Guaranteed transparency in loan processing with zero hidden charges

 

  • Simple documentation: Their documentation requirements are minimal, and their process is relatively straightforward.

 

The different types of solutions offered by PNB



 

The products offered by PNB are suitable for customers from different profiles. The bank offers various products in order to accommodate the specific requirements of a wide range of consumers. Listed below are a few of the products:

 

PNB Vanita

 

  • This loan is specifically designed for businesswomen who are involved in the trading sector, micro business, production, or other service-oriented businesses.

 

  • The women who fall into the BPL, SC and ST categories are given priority.

 

  • It is not necessary to post collateral.

 

  • Startup businesses can borrow up to Rs. 25,000 from the bank.

 

PNB Green Ride

 

  • This loan program is open to both regular professionals and also  people who are self-employed. An appropriate license indicating that the person is licensed to operate a passenger or goods carrier vehicle must be presented.

 

  • This loan can also be applied for by businesses, namely individual business owners, limited corporations, shippers, businesses in partnership, and so on.

 

  • Banks finance the purchase of e-rickshaws, to be repaid in 33 installments by borrowers.

 

  • Interest rates offered by the bank are reasonably affordable.

 

  • The amount of the loan cannot exceed Rs. 10 Lacs without collateral.

 

  • A margin of 15% is applicable.

 

  • In case of prepayment, there are no additional charges collected by the bank.

 

PNB Sanjeevani

 

  • This solution aims to provide financial support to enable the establishment of medical centers (hospitals or clinics) and the purchase of medical equipment.

 

  • Under this program, loans are advanced up to Rs. 5 Crores.

 

  • A mortgage of intangible assets is required for loans above Rs. 20 Lacs.

 

  • There is also an overdraft facility for loans exceeding Rs. 1 Crore.

 

  • Online loan applications qualify for a 20% discount on processing fees.

 

  • For consideration, candidates must hold an academic degree of BAMS, BHMS, MBBS, BDS, or BUMS.

 

  • The option is open to individuals and firms alike.

 

Super Trade

 

  • Lenders offer a cash credit line through this program that can be used to repay less than four-month-old loans and investments.

 

  • As part of this program, the bank extends a line of credit against stockholdings and accounts receivable that date back no more than four months.

 

  • If the borrower wants the loan, he or she must provide security or other liquid assets as collateral.

 

  • Finance amounts up to Rs. 5 Crores are possible.

 

  • The business must submit financial statements for the past two years.

 

  • The loan is available to merchants and businesses that are engaged in the sale of goods, merchandise, and hardware.

 

PNB Professional Scheme

 

  • Loans are advanced for the establishment of new businesses or business expansion, equipment purchases, registered professionals (except for medical professionals) and other business owners can access the loan.

 

  • There is a maximum tenure of 7 years for a loan.

 

  • Sole proprietors, limited corporations, partnerships firms, LLCs, LLPs and associations are permitted to apply.

 

  • These loans are available for individuals, partnerships, business owners, limited liability companies, and limited liability partnerships, as well as nonprofit organizations.

 

MUDRA Loans

 

  • The government of India introduced the PMMY scheme to allocate financial assistance to non-agricultural businesses such as trade and commerce, production, processing, and rendering assistance.

 

  • Advances cannot exceed Rs. 10 Lacs.

 

  • Through this scheme, allied agricultural projects may be sponsored as well

 

  • The borrower should not have made any defaults in the past

 

  • The program is open to individuals, partnership firms, businesses, limited liability companies, and limited liability partnerships, as well as nonprofit organizations.

 

Eligibility for PNB business loan:



 

Applicants: Entrepreneurs, SMEs, MSMEs, women entrepreneurs, self-employed individuals, individual proprietors, joint corporations, public and private limited entities, andLLPs specializing in trade, retail, and production businesses.

 

Age: 21 years or older at enrollment and no more than 58 years when repaying.

 

Loan Amount: Depending on your qualifying criteria, you can get loans ranging from ₹ 50,000 to ₹ 15 Lakh.

 

Business Stability: PNB requires an established business record of 2 years. In addition, the bank will be looking for sales growth for the last three years. Sales below a certain threshold or for a particular period might affect your eligibility for a loan.

 

CIBIL Score: PNB analyses old and new credit cards and loans for repayment history. For loan approval, banks recommend a score of at least 750.

 

Taxes and fees:

Interest rateMin 8.15% to 15%
Sum of the loan

Starting amount 50,000  and

no more than 50 Lacs

Processing feesUp to Rs.300/- per Lacs or a portion of it
Repayment termMinimum of 12 months to Maximum of 60 months
Pre-payment fees2% on the outstanding loan amount
Foreclosure chargesNIL
Part Prepayment, ChargesNIL
Late payment charges for EMIs2% to 4% per month on monthly installments

 

Documentation- Please refer to the following documentation requirements:

 

To apply for a Business Loan, you will need to submit the following documents:

 

  • A copy of the PAN Card – individuals and/or corporations

 

Proof of identity can be provided by any of the following documents:

  • Copy of Aadhaar Card
  • Copy of the passport
  • Copy of the Voter’s ID Card
  • PAN Card copy
  • DL

 

The following documents can be used as proof of address:

  • Copy of Aadhaar Card
  • Copy of the Passport
  • Photocopies of Voter’s ID Card
  • DL

 

Other documents:

 

  • A statement of your bank accounts for the past six months

 

  • A copy of your latest ITR along with your income statement, CA certified the last two years of profit and loss accounts.

 

  • A document certifying continuation such as ITR/Trade License/Sales Tax Registration Certificate and so on

 

  • Documents other than those required by law [ Declaration in case of a sole proprietorship or Registered Partnership Agreement, signed and notarized Memorandum & AoA (certified by Director) & Board resolution (Original)

 

To know more details on SME loans from Punjab National Bank . You can email contact@startupyo.com or call at  +918886666821.




Faq's

PNB business loans can be repaid in one of three ways.

Standing Instruction (SI): This is a convenient method of paying EMI for existing customers of the bank. Following each billing cycle, the monthly EMI is debited directly from the account of your choice. The process is simple, and there is no need to keep track of the payment due dates each month.

 

Electronic Clearing Service (ECS): Customers without an account at the lender bank can use this option. You can grant your lender bank authorization to debit funds from your other bank accounts directly, on a monthly basis.

 

Post-Dated Checks: These checks can be given to your loan servicer on the first day of each month during your loan term, and they will process them on the date specified by you. Normally, banks offer this service in locations where ECS or SI are unavailable. While this option is not without its drawbacks, banks risk losing checks if it is hung over for an extended period of time.

The terms and conditions vary from bank to bank when it comes to evaluating and approving a loan application. Among the parameters taken into account are:

 

  • Company credit score or ownership credit score for a new business
  • Businesses can be: Proprietorship, Joint Venture, Limited Liability Company, etc.
  • Revenue generated by the business
  • Profitability of the company
  • Flow of cash within the business
  • An analysis of business performance along with debt repayment history.

Getting a business loan from PNB is possible in two ways.

 

  1. Online: Like many other banks Punjab National Bank (PNB) also have a website where you can request a business loan. Simply go to the webpage and select “Apply”. Complete the form as instructed, and the application procedure is underway.

 

  1. Directly apply at a branch: Business loans can be applied for at any branch of the bank. You can negotiate good loan terms using this approach. An application process must be followed, and supporting documents must be submitted.

Depending on the specifics of your loan, you can use the EMI calculation tools on the bank’s website to pre-determine your EMI and maintain a record of your payments and outstanding amounts, which comes in handy while prepaying your loan. 

You can obtain information on the status of a business loan from Punjab National Bank (PNB) by contacting customer service or visiting your online account. As an alternative, you can contact your account manager if one was assigned to you.

In general, banks respond to loan applications within 30 days of receiving them. A few banks, however, provide instant loans, their approval taking as little as a few hours to 2-3 days. For a business loan from Punjab National Bank, the turnaround time varies from 2 to 3 days.

PNB offers business loans to public and private companies, sole proprietorships, and partnerships

A business loan through PNB does not have a fixed rate of interest. As a long-term customer of Punjab National Bank with a good credit history and consistent cash flow, you may be able to negotiate better terms.

Taking a business loan cannot simply be due to a lack of funds. It is important to do a careful evaluation beforehand, ensuring the borrowed funds are warranted. Using the funds effectively only becomes possible after this assessment has been made. Business loans should be considered based on the following factors:

 

  • The requirement of the business 
  • The loan amounts 
  • The interest rates 
  • Prepayment charges 

 

Business loans are most commonly taken for the following reasons:

 

  • Expanding operations- Increasing scalability when you feel that your organization has attained optimal performance.

 

  • Purchase equipment- if a business is going to grow and expand, it will need additional machinery and equipment.

 

  • Stock up – Nobody can predict when they will need a particular commodity. Business loans can be helpful in situations where you need funds right away to buy inventory stock or raw materials.

 

  • To increase the cash flow for working capital- In case there is not enough cash available to carry out normal business operations.

 

  • Improve credit history- By making timely payments, you’ll establish creditworthiness. Consequently, this can be beneficial when you are trying to secure funding for your business for any of the reasons listed above.