PNB Business Loans

Are you stressed about funding the investment needed to expand your business? Worry not! Business loans are here. PNB business loans can help you propel your business to new heights. The bank offers tailor-made loans with competitive interest rates. Loans are offered for small businesses based on the requirements of the customers. The loans offered provide a variety of options, such as term loan, working capital finance, project and infrastructure finance, unsecured loans, etc. 

Interest Rate and Other Charges

Interest rate: 12.65% - 16.65%

Processing fee: Up to 1.8% of the loan amount

Types of PNB Business Loans

Rooftop PV Solar Power Projects

A customized scheme has been formulated by the bank for Rooftop PV Solar power Projects. 

Features and Benefits:

• Nature of the loan: 

  • Working capital under receivables

  • Term loan

  • Non-Fund based (Letter of Credit/Letter of Guarantee)

• A loan amount of up to Rs 10 lakh is offered for Rooftop Solar Project to MSME (Micro, Small and Medium Enterprises) without collateral security.

• Door-to-door tenor of a maximum of 15 years, which comprises installation/construction, moratorium, and the repayment period.

• Moratorium: 1 year after 1st disbursement or 4 months from COD, whichever is earlier.

• Exclusive first charge on fixed assets (present as well as future ) related to the project/ program

• Personal guarantee of the proprietor/partner/director is to be obtained. In case of an SPV, corporate guarantee of the promoter’s company will be explored.

Eligibility:

The following entities are eligible to avail the loan.

• Sole proprietorship firms

• Trusts

• Partnership firms including Limited Liability Partnership (LLP)

• Limited Companies

• Non-Banking Finance Companies( NBFCs)

• Private Limited companies

• Special Purpose Vehicle(SPV)

• Registered Societies.

• Associations

Working Capital Finance

PNB offers working capital finance to meet short-term fund requirements to manage the day-to-day operations of a business. PNB’s working capital finance is extended to meet different demands from all segments of the industry, trade, and services sectors. The assistance is extended by providing both fund-based and non-fund-based facilities to corporates, proprietary concerns, partnership firms, etc. Funded facilities include demand loan, cash credit, and bill discounting. Non-funded instruments comprise letters of credit, bank guarantees to cover advance payments, bid bonds, etc.

Project Finance & Infrastructure Finance

The bank offers fund-based and non-fund-based credit facilities for new projects as well as expansion, diversification, and modernization of existing projects in the infrastructure and non- infrastructure sectors. Some of the major areas of project finance and infrastructure finance are:

• Power Sector (including renewable-energy projects in solar, hydro, and wind power)

• Real Estate Project (both residential and commercial)

• Oil & Gas and other natural resources

• Road and other PPP projects

• Telecommunication

• Aviation Sector

• Railway

• Manufacturing Units (cement, steel, etc.)

Term Loans

PNB offers term loans to support capital expenditures to set up/start an industrial unit/new business/expansion/renovation, etc.

Export Finance

Export Finance is offered at pre-shipment and post-shipment stages to exporters for both fund-based and non-fund based credit facilities.

Bill Financing

PNB provides advances upon inland bills in the form of limit for purchase of bills, advances against bills, or a discount on bills sent for collection to borrowers for their trade transactions. Bill facilities are also allowed to the borrower against bills accompanied by Motor Transport Receipts (MTRs), Govt. Supply Bills, Railway Receipts (RRs), third party DDs and cheques, etc.

Financing Against Future Receivables

PNB provides the facility to finance against assured future receivables, to both corporate and non-corporate borrowers. The borrower has to assure future receivables such as BPOs/KPOs, Educational Institutions, or any other similar institution that can avail the facility for meeting their business needs. The scheme also covers receivables from annuity receivables/toll collection in case of BOT road projects.

Short-Term Loan

A short-term loan is offered to meet the short-term business exigencies of reputed PSUs or corporate customers. The loan is sanctioned for a short period, not exceeding 12 months.

How to Apply for PNB Business Loans

Apply for PNB Business Loan Through a Branch

• Visit the nearest PNB branch.

• Request for the Business Loan application form.

• Inquire about the loan type.

• Fill in the application form with the necessary details.

• Submit the form along with the required documents.

• After verification is done, your request will be processed, and can be approved.

Documents Required for PNB Business Loans

Here is the list of the documents required to apply for PNB Business Loans:

• PAN Card of the Individual/Company/Firm

• For identity proof:

  • PAN Card

  • Aadhaar Card

  • Voter's ID Card

  • Passport

  • Driving License

• For address proof:

  • Voter's ID Card

  • Aadhaar Card

  • Driving License

  • Passport

• Bank statement for the last six months.

• Latest ITR along with balance sheet, computation of income, and profit & loss account for the last two years, which has been CA certified/audited.

• Form 60 for the Applicant/Co-applicant/Guarantor.

• Proof of continuation (ITR/Establishment/Trade license/Sales Tax Certificate)

• Other documents. 

  • Sole Proprietorship Declaration or certified copy of partnership deed.

  • Board resolution (Original)

  • A certified true copy of Memorandum and Articles of Association (certified by the Director).

EMI Calculator for PNB Business Loans

The PNB EMI calculator helps you find out the EMI amount you would have to pay every month to repay your loan. It is very essential for you to know the interest amount you will be required to pay for your loan to plan your expenses accordingly. 

Interest Rates of Top Banks Offering Business Loans 

Bank	Interest Rate	Processing Fee
SBI	11.20% - 16.30%	2% to 3%
Axis Bank	15.50% - 24%	Up to 2%
HDFC	15.65% - 21.20%	Up to 2.5%
ICICI	12.90% - 16.65%	Up to 2%
Citibank	16% - 18.99%	Up to 2%
Yes Bank	16.25% - 19.99%	Up to 2%
PNB	12.65% - 16.65%	Up to 1.8%
IDBI	13%	1%
Kotak Bank	16% - 19.99%	Up to 2%
IndusInd	14%	Up to 2.5%
Andhra Bank	9.15% - 16%	1% to 3%
RBL	20% onwards	Up to 3%
Canara Bank	10.50% - 18%	Up to 1%
Bank of Baroda	14.10%	Up to 1%

FAQs

Do I get any benefit if I have a PNB current/savings account?

Yes. In such a case, PNB offers special interest rates and faster processing.

What is the interest rate for PNB Business Loans?

The interest rates for PNB Business Loans varies within the range of 12.65% - 16.65%.

How can I calculate my PNB Business Loan EMI?

You can calculate your EMI using the PNB business loan EMI calculator. Do so by entering the loan amount, tenure, and desired interest rate.

What is the processing fee for PNB Business Loans?

The processing fee for PNB Business Loans is up to 1.8% of the loan amount.