Punjab National Bank is one of India’s oldest public sector banks, provides business loans to entrepreneurs as well as self-employed professionals with an aim to support the business capital requirements or to expand business operations. The business loan users get the interest rate offered by PNB depends on the applicant’s profile and business requirements. Apart from this, the applicant’s financial history, CIBIL Score, and loan repayment history, etc.
Punjab National Bank Business Loan Highlights
|Interest Rates||8.95% – 14.00%|
|Loan Amount||INR 50,000 – INR 10 lakh|
|Processing Fees||1.80% of the loan amount|
PNB Business Loan eligibility criteria
Punjab National Bank offers a wide range of business loan schemes to its users; thus, the eligibility criteria vary from one scheme to another. Eligible entities to avail of PNB Business loan are individuals, SMEs, MSMEs, business owners, women entrepreneurs, partnership firms, sole proprietors, employed professionals, and limited liability partnerships who are engaged only in trading and manufacturing sectors.
- In this case, self-employed individuals, proprietors, private ltd. Co. and partnership firms involved in the business of manufacturing, trading, or services.
- Individuals should be at least 21 years at the time of loan approval, and maximum it should be 58 years at the time of loan maturity.
For more details check out the table of PNB Business Loan as under:
|Loan Amount||Starting from Rs. 50,000 up to Rs.50 lakhs|
|Tenure||Minimum of 12 months to a maximum of 60 months|
|Business Loan Interest Rate||Starting from 8.15% up to 15%|
|Loan Processing Charges||Up to Rs.300/- per lakh|
|Pre-payment charges||2% on the outstanding pre-paid|
|Charges for late payment of EMI||2% to 4% per month on EMI / Principal|
Documents required for Punjab National Bank Business Loan
The following documents are essentially required for a business loan application:
- PAN Card for company/firm/individual.
- A copy of any of the following documents as identity proof:
- Aadhaar Card
- Voter’s ID card
- Driving license
- A copy of any of the following address proof:
- Diving License
- Voter’s ID Card
- Aadhaar Card
- Bank statement of last 6 months
- Proof of continuation (ITR/Trade License/ Sales Tax Certificate/ Establishment)
- Other mandatory documents
Factors affecting PNB Business Loan eligibility
- Ability to duly repay the loan amount: The applicant should check the legitimate source of income and can repay the dues on time.
- Track record of an existing business: Bank will check the past transactions and the company’s growth to understand the company’s financial needs and can repay the same in due time.
- Business stability: PNB requires the financial record of businesses to assess their stability in the same company. It calculates the growth in sales over the past few years. If the sale is not up to their standards, thus the loan can be approved.
- A credit score of the company: You will get a call from the bank representative that will check the company’s repayment history for all prior loans taken. Applicants with having good credit history will get the loan easily.
- Profitability and turnover: Bank requires profit details of the applicant for the last 2 years. An organization’s profitability and revenue play an important role in determining if an applicant can avail of a loan or not.
- ITR and Banking details: Individuals need income tax returns and banking details for an already existing company, before sanctioning the loan amount.
PNB Business loan interest rate calculator
Here are multiple factors based on that bank calculates the applicant’s interest rate. Some of these factors:
- Loan amount: The business loan rate offered by PNB depends upon the loan amount you apply for. If the loan amount is higher, the interest rate will be lower. PNB Bank offers a loan amount for a minimum of Rs. 50,000 up to Rs. 50 lakhs. The interest rate is offered for the high loan amount can be lower EMIs.
- CIBIL Score: If your CIBIL Score is low, PNB offers loans at a higher interest rate. However, to get the loan amount from PNB, the applicant’s CIBIL Score should be at least 700. If the CIBIL Score is higher, the chances of getting a loan at the lowest interest of the business loan.
- Time in business: PNB offers loans at lower interest rates if the applicant has the significant business experience to get the loan approval.
- Revenue: PNB offers loans at a low-interest rate if you have significant business experience. The user will get experience to get a loan from PNB in 0 months.
The described information helps the user to get PNB Business Loan at a low-interest rate. If you need to get more details such as eligibility criteria, interest rate, documents required, and more. You can also choose the loan amount according to your requirements. Apart from this, you can visit the official site of Punjab National Bank.