Best Tips To Get Punjab National Bank Business Loan 2021

There already have many people who have a dream of starting their own business or if one already has a business, they need to expand it and build it to something better. Whether it is SMEs or MNCs, everyone is required of funds at one point in time or another. One of these banks, Punjab National Bank Business Loan 2021 offered to the individual just for instant purpose.  

Overview of Business Loan  

Any individual who wishes to start a business or expand an existing one requires finances to do it. Individuals and businesses take out loans at a pre-determined interest rate and the repayment period. Businesses cannot function properly without this working capital. There are two sorts of company loans: secured and unsecured. 

  1. Secured Loan: Individuals and enterprises contribute collateral, such as merchandise, land, and machinery, for secured loans. The interest rate will be lower here. 
  2. Unsecured loans/Small business loans: This is when a company takes out a loan with no security. The interest rates are high because the banks’ risk is considerable. 

Punjab National Bank Business Loan Eligibility  

  • Self-employed individuals, proprietors, private limited liability companies, and partnership firms engaged in the manufacturing, trading, or service industries. 
  • The applicant must be a minimum of 21 years at the time of loan application and a maximum of 58 years at the time of loan maturity. 
Loan Amount  Min. Rs. 50,000  

Max. Rs. 50,00,000 

Tenure  Minimum of 12 months up to a maximum of 60 months 
Punjab National Bank (PNB) Business Loan Interest Rate  8.15% to 15% 
Loan Processing Charges  Up to Rs.300 per lakh or more  
Pre-payment charges  2% on the outstanding pre-paid amount 
Charges for late payment of EMI amount  2% to 4% per month on EMI / Principal amount 

Punjab National Bank Business Loan documents requirements  

Listed below are the following documents that are required along with the Punjab National Bank business loan application:  

  • PAN Card – Individual/Company/Firm 
  • As proof of identity, a copy of any of the following documents: 
  • Voter’s ID Card  
  • Aadhaar Card  
  • Passport 
  • Driving License  
  • PAN Card 
  • As evidence of address, a copy of any of the following documents: 
  • Aadhaar Card 
  • Passport 
  • Voter’s ID Card 
  • Driving License 
  • 6-month bank statement 
  • After getting CA Certified/Audited Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate) for the preceding two years, coupled with computation of income, Balance Sheet, and Profit & Loss account 
  • Other Required Documents [Sole Proprietorship Declaration or Certified Copy of Partnership Deed, Certified authentic copy of Memorandum & Articles of Association (certified by Director), and Original Board Resolution.  

How to check the best interest rate on Punjab National Bank?  

The duration and interest rate of every business loan is critical to the borrower. They will decide whether or not to take out the loan based on this. Because business loans typically demand large sums of money, the standards and criteria for approval are more stringent. Business Loan Interest Rates offers at 8.15% p.a.  

Factors affecting Punjab National Bank Business Loan Interest Rates  

Any person who runs a genuine firm with a high turnover can apply for a business loan. To evaluate and authenticate a person’s business, different banks have different requirements and conditions. After all, the bank’s purview and authority extend to the loan amount, length, and rate of interest, as well as whether or not to offer a loan. Some of the characteristics that were taken into consideration:  

  • Company credit score or, in the event of a new firm, the owner’s credit score  
  • Type of business: Whether it’s a sole proprietorship, a partnership, a private limited company, or a public limited company 
  • The company’s turnover 
  • Profit generated by the company 
  • The company’s cash flow 
  • Business track record 

How to apply for Punjab National Bank Business Loan?  

A company loan can be applied for in one of two ways: 

  • Online Process: Many banks, such as Punjab National Bank (PNB), have business loan applications available on their websites. All a customer has to do is go to the website and click the Apply button. Fill out the form with the requested information, and their application process will begin. 
  • Visit a branch: To apply for a business loan, a person might go directly to a branch. You have the opportunity to negotiate acceptable loan conditions using this strategy. A new application form will be provided, which must be filled out and sent along with the required documentation. 

Conclusion  

Most business loan plans at PNB can be prepaid by paying a prepayment fee of 1% of the loan amount plus GST (Goods and Services Tax). Customers can pay their bills in monthly installments through online banking, ECS, or PDC. PNB, as one of India’s oldest banks, has a strong brand and is widely available across the country. It is an excellent alternative for a company loan because of its simple documentation and quick loan processing.