PNB Business Loan, Interest Rates

Punjab National Bank (PNB) offers a variety of business loans designed to support startups, entrepreneurs, and self-employed professionals. These loans cater to businesses' capital requirements and expansion plans across various sectors. Here's a detailed overview of PNB's business loans:

PNB Business Loan Interest Rate

• Instant Loan Starting at 11.99% p.a. PNB's business loan interest rates start from 10.30% and can go up to 15%, depending on the applicant's profile, financial history, and CIBIL score. The interest rates are linked to the Repo Rate Linked Lending Rate (RLLR) plus a Business Strategic Premium (BSP).

PNB Business Loan Eligibility Criteria

To be eligible for a PNB business loan, applicants must meet the following criteria:

• Age: Minimum 21 years at the time of loan approval and maximum 58 years at the time of loan maturity.
• Business Type: Individuals, SMEs, MSMEs, business owners, women entrepreneurs, self-employed professionals, sole proprietors, partnership firms, public and private limited companies, and limited liability partnerships engaged in trading, services, and manufacturing sectors.
• Profitability and Revenue: Minimum profit for 2 years and a minimum business turnover.
• ITR and Banking: ITR details for a minimum of 6 months and bank statements for a minimum of 6 months.
• CIBIL Score: A CIBIL score of 750 and above is recommended for loan approval.

PNB Business Loan Required Documents

Applicants need to provide the following documents for the business loan application:

• Duly filled application form
• Passport-sized photographs
• Business Plan/Project Report
• Business PAN card
• Identity proof and address proofs (Aadhaar Card, Voters Identity Card, Passport, Driving License)
• Business Incorporation Certificate
• Last 12 months' bank statement
• Last 2 years' Balance Sheet, Profit & Loss statement, ITR, and Sales Tax returns
• Any other document required by the bank

Other Charges

PNB imposes various charges for business loans, including:

• Processing Fees: Up to ₹5.00 lakh - NIL; Above ₹5.00 lakh to ₹10.00 lakh - 0.35% of the loan amount + 18% GST.
• Commercial CIC Charges: ₹500 + 18% GST (Applicable to proprietor).
• Consumer CIC Charges: ₹100 + 18% GST (Applicable to all).
• CGTMSE Charges: As per loan amount.
• Penal Charges: 2% above the normal interest rate for delayed repayments.
• Service Charges: Charges for outward RTGS/NEFT/IMPS transactions, inward NACH eMandate verification, etc.

Benefits of PNB Business Loans

• Prepayment Facility: Prepay part of your loan anytime after paying 1% prepayment charges.
• No Prepayment Charges: No prepayment charges for PNB business loans.
• Wide Reach: PNB services are available across 6,352 branches in India.

PNB's business loans are a great option for businesses looking to expand or meet their working capital requirements. With competitive interest rates and a wide range of benefits, PNB ensures that businesses have the financial support they need to thrive.

How to Apply for a PNB Business Loan?

• Visit the PNB Official Website: Go to the Punjab National Bank's official website at https://www.pnbindia.in.
• Navigate to the Business Loans Section: On the homepage, hover over the "Loans" section and click on "Business Loans."
• Select the Loan Scheme: Browse through the various business loan schemes offered by PNB. Select the one that best suits your business needs.
• Fill in the Application Form: Click on "Apply Now" for the selected loan scheme. You'll be directed to an application form where you'll need to provide your personal and business details.
• Upload Required Documents: You will be asked to upload the necessary documents such as identity proof, business registration documents, financial statements, and more.
• Submit the Application: Review all the information you've provided, then click on "Submit." You'll receive an acknowledgment receipt with a reference number for future communication.
• Wait for Processing: PNB will process your application, which usually takes 7-15 working days. They may contact you for further information or document verification.
• Loan Approval and Disbursement: Once approved, you will receive a sanction letter detailing the loan amount, interest rate, repayment tenure, and other terms. The loan amount will then be disbursed to your account.

https://youtu.be/dLV1n3ni9Sw?si=aWY0XAomP4iJBvhi

Offline Application:

• Visit the Nearest PNB Branch: Locate the nearest PNB branch by visiting the PNB website or using a map service.
• Speak to a Loan Officer: Meet with a PNB loan officer and discuss your business loan requirements. They will guide you on the best loan scheme for your needs.
• Fill in the Application Form: You will be given a physical application form to fill out with your personal and business details.
• Submit the Required Documents: Provide the loan officer with copies of the required documents, such as identity proof, business registration, and financial statements.
• Application Processing: The branch will process your application. This can take 7-15 working days, during which you may be asked to provide additional information.
• Loan Approval and Disbursement: If your loan is approved, you will receive a sanction letter with the details. The loan amount will then be credited to your bank account.

https://youtu.be/dLV1n3ni9Sw?si=aWY0XAomP4iJBvhi

Tips for a Successful Application

Maintain a Good Credit Score:

• Ensure your credit score is good, as this will influence the approval process and interest rate.

Prepare a Business Plan:

• A well-prepared business plan can strengthen your application, especially if you're applying for a substantial loan amount.

Ensure Complete Documentation:

• Incomplete documentation can delay the process, so double-check that you have all the required documents.

Follow Up:

• If you haven’t heard back within the expected time frame, follow up with the bank using the reference number provided during the application.

By following these steps, you can apply for a PNB business loan smoothly and increase your chances of approval.

FAQs:

What is the interest rate of a business loan?

What is the Maximum loan amount I can get under the PNB Mudra Loan scheme?

• You can avail up to Rs. 10 lakh under the PNB Mudra Loan scheme.

What is the eligibility Criteria for a PNB MSME loan?

• Your business must be registered as an SME and have a satisfactory credit score. It should also be operational for at least 2 years.

Can women entrepreneurs apply for PNB business loans?

• Yes, women entrepreneurs can apply under the PNB Stand-Up India Loan scheme, which is designed specifically to promote women's entrepreneurship.

How long does it take to get a PNB business loan approved?

• The approval process generally takes 7-15 working days, depending on the completeness of documentation and the specific loan scheme.

Is collateral required for PNB business loans?

• Collateral requirements vary by scheme. For instance, PNB Mudra Loans typically don’t require collateral, while other schemes may require it based on the loan amount and applicant profile.

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