PNB Business Loan

by Bizopedia · Published February 14, 2022 · Updated June 17, 2022

PNB Business Loan

Punjab National Bank is one of the largest public sector banks in India. PNB offers various loan for businesses across india. PNB business loan is offered at a lower rate of interest compared to private sector banks in India. In this post, we would look into various features of a business loan from Punjab national Bank.

Credit facility – PNB offers business loan in fund based as well as non fund based limits. Fund based limits would include facilities such as working capital loan, Term Loan, CC and overdraft limit. Whereas, non fund based limit would include facilities such as letter of credit and letter of guarantee etc.

Loan Amount – From PNB, you can get a loan up to 5 Crores for your business needs. Loan tenure can range from 12 months to 60 months. Interest rate on PNB loans is benchmarked against a standard rate known as RLLR and PNB charges a spread over it. Usually for business loans, PNB charges a rate of interest between 8%-15% per annum on reducing principal.

End use – PNB Business loan can be used for variety of end uses such as purchase of machinery, purchase of raw materials, working capital requirements etc.

Secured or unsecured – Punjab National bank offers its variety of business loan in both secured and unsecured manner. Main security that is taken for a business loan is in the form of a property.

Charges and fee – PNB charges variety of charges and fee for its loan processing. For complete list of charges by Punjab national bank, you can visit this link

Application form – You can complete online application for a business loan from Punjab National bank from these links-

Punjab National Bank business loan up to Rs 1 Crores

Punjab National Bank business loan up to Rs 2 Crores

Punjab National Bank business loan greater than Rs 2 Crores

PNB Business Loan

Documents required for PNB Business Loan

Bank statement – Bank statement for the past 12 months is usually required by a bank for verifying business credits, equity infusion, salary paid to employees, EMI deduction etc. care should be taken to submit bank statement not older than 15 days from the date of application. If possible, bank statement should directly be downloaded from bank’s website in a PDF format. Current account statement should be shared with the bank.
Business Registration Proof – A business registration proof must be provided in business loan documents. With the implementation of GST rule, banks can take GST registration as a valid proof of registration for a business loan. Other registration proofs such as IEC code, MSME certificate, Udyam registration are also valid registration documents for a business loan
PAN card copy – PAN card copy of all the directors is a mandatory requirement for a business loan. A business loan is an financial transaction and PAN is mandatory to be provided for inputting data to credit burau for the directors as well as establishing identity of the individual. Though, it is to be noted that a PAN card is not a valid proof of address.
Aadhar card copy – A valid Aadhar card copy should be presented along with other business loan documents mentioned above. Aadhar is a valid proof of residence as well proof of address under Indian law
Company PAN card – For a business loan , PAN card of the company should be generated along with other documents required for a business loan.
Audited Financials – Banks will also ask for audited financials of the company for past 3 years to establish financial viability of the firm.