How to get Business Loan in Punjab National Bank (PNB) Business Loan

Overview of How to Get Business Loan in Punjab National Bank (PNB)

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. 

Business Loan in Punjab National Bank (PNB)

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.

Read More: Business Loans and Top 14 Types of Business Loans

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 rates, 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, the 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 spending 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.
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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 Rs10 Lacs without collateral.
  • A margin of 15% is applicable.
  • In the case of prepayment, there are no additional charges collected by the bank.

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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 Rs5 Crores.
  • A mortgage of intangible assets is required for loans above Rs20 Lacs.
  • There is also an overdraft facility for loans exceeding Rs1 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.
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PNB Professional Scheme

  • Loans are advanced for the establishment of new businesses or business expansion, and 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, partnership firms, LLCs, LLPs, and associations are permitted to apply.

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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, and LLPs 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 loanMinimum of 12 months to a Maximum of 60 months
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
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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

Read More: How to Get Business Loan in IDBI Bank?

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 [email protected] or call +918886666821.

FAQ‘s:

What is the interest rate for existing customers of Punjab National Bank (PNB) business loans?

Who qualifies for a business loan from Punjab National Bank?

What are the methods for calculating business loan interest or EMI?

What options are there for tracking the progress of the loan I applied for at PNB?

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