Punjab National Bank (PNB) is an Indian multinational bank that offers banking and financial services to its customers nationwide. Among all the various services PNB offers a wide range of loans for MSMEs. The PNB MSME loan is offered to Micro Small Medium Enterprises (MSMEs) engaged in manufacturing, trading, or service sectors. Moreover, applicants running non-farm-based activities like animal rearing, dairy can also avail of these loans.
When any small, micro, or medium enterprises are willing to improve their business, then MSME loans are the options to choose from. MSME loans are the financial assistance that helps businesses in expansion, renovation. Punjab National Bank is one of those leading banks which provides MSME loans.
List of MSME Loans offered by PNB Bank
PNB MSME Working Capital Loan
This scheme is designed to help MSME units by providing financial support, this funding can be used as the expenditure of everyday operations like investing in current assets, raw materials purchase, salary payments, power charges, etc.
1. The PNB MSME Working Capital Loan is available for MSME units to utilize in projects and activities related to running the business daily.
2. The maximum loan amount sanctioned under this scheme is Rs. 10 lakh.
3. Borrowers with a threshold credit rating B1 and above are eligible for this loan.
PNB Green Ride
This loan is designed for small transport operators. In this MSME category borrowers can avail the loan to buy e-rickshaws for commercial use or can also be used for a battery replacement after one year or two years. This scheme assists transport operators by providing more employment opportunities. The scheme can be availed by any individual, sole proprietor, public ltd companies, or partnership firms.
1. This is a secured loan.
2. For a new E-rickshaw, the bank funds maximum of 85% of the vehicle’s invoice price or 80% of the on-road price of the vehicle(whichever is less). For battery replacement after one year, the bank will give 85% of the replacement cost.
3. Promoter’s contribution will be a maximum of 15% of the vehicle’s invoice price or 20% of the on-road price.
4. The loan tenure is 33 months.
5. The bank requires hypothecation of the vehicle bought out of the loan amount and no collateral security is required if covered under CGTMSE.
6. The borrower or the driver needs to have a valid driving license and permit issued by the authority for the transportation of passengers and goods.
PNB MSME Mahila Udyami Loan
This scheme is to empower women willing to start or explore their work in the world. It helps women to be self-dependent and develop. Businesses controlled by women are eligible for this loan.
1. The loan is to finance capital requirements for women who are running their small businesses.
2. All MSME women managed businesses or partnerships engaged in manufacturing, service, and trading sectors can avail of this loan.
3. The funds from this loan can be utilized for a new unit or enterprise start-up, expansion or modernization of existing business, and acquiring of assets like machinery, equipment, furniture, etc.
PNB Sanjeevani Loan
This scheme is especially for doctors and medical practitioners to avail their working capital requirements. The fund can be used in capital expenditure luke setting up a clinic, nursing home, hospital, pathology lab or to purchase medical equipment like x-rays, CT scans machines, etc or ambulance vehicles, generators, refrigerators, software for diagnostic purposes or other items to start a clinic, or nursing homes.
This scheme is eligible for qualified doctors and registered practitioners because, the minimum qualification requirement is MBBS, BAMS, BDS, BUMS, and BHMS.
1. The loan is for medical practitioners who need financial assistance as working capital.
2. Qualified Medical practitioners from different branches like Allopathy, Homeopathy, Unani, Ayurveda with relative experience in running the business are eligible for this loan.
3. Individuals, Proprietors, LLPs, Trusts, and companies can also avail of this loan if, an MBBS, BAMS, BDS, BHMS qualified doctor owns a majority stake in them.
4. The minimum loan amount is Rs. 1 lakh. And the maximum amount could be Rs. 5 crores.
5. The repayment tenure would be maximum of 7 years.
6. The loan can allow as a term loan and Overdraft.
7. The margin rate would be 25 % for this scheme.
8. As security, the bank needs the hypothecation of the equipment, vehicles, or items bought in this provided fund, and no collateral security is required for loans up to Rs. 10 lakhs. No collateral security is needed if covered under CGTMSE for loan amounts over 10 lakhs to Rs. 1 Crore. If not covered, then the bank would require 100% equivalent to the loan amount in form of an immovable property mortgage.
PNB Transport Loan
This scheme from PNB helps Road Transport Operators in the Micro, Small, and Medium Enterprises sector to buy passenger vehicles such as taxis, 3 wheelers, e-rickshaws, cargo vehicles, etc. This loan is available in the purchase of brand new and old vehicles or construction of the body including fare meter.
1. The scheme is designed for Passenger Vehicle Transport Operators in the MSME sector as funds for purchasing new or pre-owned passenger vehicles for business use.
2. Subject to coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE) guarantees loans of up to Rs. 10 lakh under this loan scheme collateral-free.
PNB MSME Sahayak Loan
PNB offers this loan for MSME borrowers having a working capital above 2 lakhs who can apply for this scheme.
1. The maximum loan amount allowed is 20% of the existing working capital or 80% of the input tax claim due on purchases, whichever is less.
2. The repayment tenure of the loan is 6 months after the moratorium period of the first 3 months.
3. As security, the bank will require the hypothecation of the assets bought with the loan amount.
4. No collateral security requires.
PNB Weaver Mudra Scheme
This scheme helps weavers to avail funds as working capital and capital expenditure needs. Weavers with a satisfactory CIBIL score are eligible for this loan. Any existing handloom weavers having a good banking track record can apply and avail of this loan.
1. The scheme acts as an Overdraft(OD) or Cash Credit facility based on the borrower’s need.
2. The bank issues a MUDRA card with a limit of up to Rs. 50,000 which the weaver can use to withdraw money from the bank’s ATM.
3. The minimum loan amount is based on the need while the maximum amount can be avail up to Rs. 5 lakhs.
4. The government supports the scheme by providing the margin money. The subsidy is 20% of the loan which can go up to a maximum of Rs. 10000. The interest subsidy is up to 6% for the borrower and anything excess to it will be borne by the Govt. which is up to a maximum of 7% for 3 years from the date the loan amount is disbursed.
The main objective of this scheme is to encourage women for better income generation in businesses like manufacturing, trading, services, and small businesses. Under this scheme, the preference will give to SC/ST/BPL category.
1. The maximum loan amount available is Rs. 25000 and the amount should be utilized to set up a new unit, renovation of an existing unit, the expansion only.
2. The loan tenure is 3-5 years with the moratorium period of 3-6 months maximum depending upon the type of business.
3. As security, the bank needs the asset bought by this loan amount or the borrower’s security.
The scheme is mainly designed to finance current assets, stock, business expenses such as salary and wages. The loan can be availed by any individual, public or private limited companies, partnership firms, cooperative societies, and trusts. However, the qualification of the applicant is also quite important for this scheme.
1. In this scheme, loans can give as cash credit, overdraft, composite loan, and term loan. As a term loan, the applicant can utilize the fund to acquire fixed assets, equipment, and infrastructure or for renovating existing units, building additional infrastructure facilities, purchase of vehicles, etc.
2. If the loan is taken as working capital, then the tenure will be 1 year and renewed annually. On the other hand, if taken as a term loan, then the repayment tenure would be 5-7 years.
3. As a security, the bank will require hypothecation of the assets bought by the loan amount.
4. As working capital facilities, the margin would be nil for cash credit up to Rs. 2 lakhs, 20% for over Rs. 2 lakhs – 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.
The scheme is to cover the cost of components, raw materials, stores, marketing of the finished products by way of bills purchased and discounted, and book debts. This scheme can be availed by individuals, public or private limited companies, cooperative societies, etc.
1. The loan can be availed as a term loan for acquiring fixed assets, expansion, or modernization of the existing units.
2. If taken as working capital, then the tenure would be 1 year and renew the loan annually. If taken as a term loan, then the repayment tenure would be 5-7 years.
3. As security the bank will require hypothecation of the assets bought by the loan amount.
4. As working capital facilities, the promoter’s contribution would be nil for cash credit up to Rs. 2 lakhs, 20% for over Rs. 2 lakhs – Rs. 5 lakhs, and 25% for above Rs. 5 lakhs in case of hypothecation. For pledge, the margin would be 15%. For book debts, it is 25% till Rs. 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 Rs. 2 lakhs, and above Rs. 2 lakhs – Rs. 5 lakhs the margin would be 20% and anything above that would be 25%.
PNB Artisan Credit Card
It is a credit card-based loan scheme for artisans involved in the production or manufacturing process. The loan provides financial support to artisans by making credit delivery easy and simple. All artisans in this category with having a credit facility up to Rs. 2 lakhs are eligible for this loan.
1. PNB offers this scheme to Indian artisans to fund their working capital needs.
2. The credit card comes with 3 years of validity.
3. The loan can give both a term loan and a cash credit limit.
4. As security, the bank needs the hypothecation of machinery, stocks, equipment bought by the loan.
5. Need No collateral security if the loan is under CGTMSE coverage.
6. Zero margins Up to Rs. 2 lakhs.
PNB Laghu Udyami Credit Card
This scheme is made to provide financial support to Artisans, Village Industries, small Business units, Micro & Small Enterprises(Manufacturing & Services), Professionals and Self-employed persons, etc.
1. The loan give as cash credit and the maximum loan amount is Rs. 20 lakhs.
2. 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.
3. For Micro & Small enterprises (other than trading), the cash credit margin would be nil for up to Rs. 2 lakhs, 15% for loan amounts of over Rs. 2 lakhs – Rs. 5 lakhs, and 25% for above Rs. 5 lakhs. For trading businesses, the margin would be 30%-40%.
4. As security, the bank needs the hypothecation of machinery, stocks, equipment bought by the loan amount.
5. Need No collateral security if the loan is under CGTMSE coverage.
Scheme for advances to small road transport operators
This loan is suitable for Small Road Transport Operators in the Micro, Small, and Medium Enterprises sector to buy commercial vehicles. This fund can be utilized on the purchase of brand new vehicles as well as pre-owned vehicles for business use.
The objective is to assist the transport operators in creating employment opportunities. The scheme can be availed by any individual or association that owns transport vehicles to carry passengers, materials, or goods on hire. A valid license and legal permit are also required for this scheme.
1. The loan is for Small Road Transport Operators in the MSME sector to avail funds and purchase new or pre-owned commercial vehicles for business use.
2. The transport operators owning trucks and buses are also eligible for this loan.
3. For buying a new vehicle the bank will allow a loan amount of 90% of the vehicle’s invoice price.
4. Under this scheme the promoter’s contribution would be 10% for new vehicles and 25% for old vehicles.
5. As security, the bank needs hypothecation of the vehicle bought by the loan amount. The vehicle should be registered in joint names of the borrower and the bank under the Motor Vehicles Authority.
6. In the case of new vehicles, the repayment tenure is 60 months and for old vehicles, the repayment tenure is 30-48 months.
PNB General Credit Card scheme
This loan helps MSME businesses in the non-agricultural sector as the working capital and capital expenditure needs. The objective of this scheme is to increase the credit flow to individuals for business activity in the non-farm sector through General credit cards.
1. All MSME businesses engaged in non-farm entrepreneurial activities are eligible for this loan.
2. The maximum loan amount allowed under this scheme is Rs. 10 lakhs. However, the loan amount will determine by the bank based on the credit requirements and the repayment capacity of the customer.
3. The loan can allow as a working capital and term loan with a repayment tenure of 12 months.
PNB Dealer Subidha
The scheme provides financial support to those dealers who are engaged in the sale of agricultural implements and custom hiring services.
1. The loan is given as cash credit for the sale of agricultural implements, term loans, and working capital for custom hiring services.
2. For the 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 a good track record with the bank.
Scheme for financing against warehouse receipts in electronic form
This loan scheme is a need-based loan and is designed to provide financial assistance to farmers, traders, exporters, and importers dealing with non-perishable agricultural commodities against negotiable warehouse receipts.
1. The loan is perfect for small businesses that need financial assistance against negotiable warehouse receipts issued by repositories approved by WDRA for stocks or goods stored in WRDA-accredited warehouses.
2. This is a short-term loan with a repayment tenure of 12 months.
3. The available minimum loan amount is Rs. 5000 whereas, the maximum loan amount is Rs. 50 lakhs to individuals and Rs. 25 Crores to sole-proprietorships.
4. The promoter’s contribution is 25% depending upon the type of commodity financed.
PMMY (MUDRA Loan)
This loan helps individuals, proprietors, or partnerships running small manufacturing units, fruit and vegetable shops, food service units, repair shops, small industries to get funds for their business needs.
1. The scheme is for non-corporate Small Businesses to get funds for their Working Capital needs.
2. The scheme has three variants depending on the type and size of the business. Shishu, Kishore, and Tarun are the variants. The amount of loan depends on the variant.
To know more about PMMY MUDRA Loan, visit Mudra Loan Online Apply, Eligibility, Interest Rate, And get a clear idea of the loan’s features, advantages, how to apply, eligibility, and more.
PNB MSME Vyapaar Loan
This loan helps retail and wholesale traders, distributors, and agencies who deal in goods or commodities(indigenous or imported) in the MSME sector to get their working capital needs.
1. Previously known as the PNB Super Trade Loan, the PNB Vyapaar Loan has been brought to fund trading businesses in the MSME sector as their Working Capital needs.
2. The bank offers a high loan amount of upto Rs. 5 Lakhs in this category, which is higher as compared to other banks and financial institutions in the market.
The eligibility criteria are determined as per the scheme selected by the borrower. The bank representative may ask for additional documents if required.
- Identity proof such as PAN card, Voter’s ID, Passport, Driving license, etc.
- Address of business.
- Rent agreement.
- Residential proof such as passport, telephone bills, electricity bills, etc.
- Photo copies of lease deeds, sanction letters from existing banks.
- VAT copy.
To avail of these loans, borrowers are advised to visit the nearest PNB branch and apply for their selected loan only after having a brief discussion with the bank representative. Depending on the need and repayment tenure, the loan amount interest rates vary.
Contact for PNB MSME Loan
Website – www.pnbindia.in / www.netpnb.com
Call (Toll free) – 1800 180 2222 / 1800 103 2222.