With effect from 1 April 2021, United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank.
Punjab National Bank (PNB), provides business loans to startups, entrepreneurs, as well as self-employed professionals. They intend to support the business capital requirements or to expand business operations. PNB business loan is offered between Rs. 5 Lakhs and Rs. 15 lakhs.
The business loan interest rate given by PNB depends on the applicant’s profile and business requirements, along with the applicant’s financial history, CIBIL score, and loan repayment history, etc.
The Punjab National Bank business loans are offered to businessmen and self-employed persons in case they intend to expand their business or require funds to finance their working capital requirements.
What are the Benefits of PNB business loan?
PNB offers loans to self-employed and businessmen for funding the expansion or working capital requirements of their business. There are some benefits of taking a loan from PNB:
- You can prepay part of your loan anytime after paying 1 % prepayment charges
- Foreclose your entire Business loan anytime after paying 0 EMI’s at foreclosure charges – Nil prepayment charges
- You can avail PNB service across 6,352 branches in India
What are the Eligibility Criteria PNB Business Loan?
- Eligible Entities: Individuals, SMEs, MSMEs, business owners, women entrepreneurs, self-employed professionals, sole proprietors, partnership firms, public and private limited companies, and limited liability partnerships who are engaged only in trading, services, and manufacturing sectors.
- Age: Minimum at least 21 years old at the time of loan approval and a maximum of 58 years at the time of loan maturity.
- Loan Amount: Based on the loan amount eligibility, the bank gives you loans ranging from ₹ 50,000 to ₹ 15 Lakh. T
- Profitability and Revenue: PNB requires profit for a minimum of 2 years and a minimum business turnover of ₹ 0.
- Business Stability: PNB requires a minimum business track record of 0 months. The bank will also look for minimum growth in sales for the last three years. A drop in sales for a particular period or below a definite limit might affect your eligibility to get the loan.
- ITR and Banking: Your ITR details for a minimum of 0 months and bank statement for a minimum of 0 months will be required by PNB.
- CIBIL Score: PNB will check your repayment history for all current and past loans and credit cards. The bank advises you to maintain a score of 750 and above to get loan approval.
What are the Documents Required for PNB Business Loan Application?
PNB offers a wide array of Business Loan Schemes to its customers. The following set of documents are commonly required under the business loan schemes:
- Duly filled application form
- Passport-sized photographs
- Draft Business Plan/Projecr Report
- Business PAN card
- Identity proof and Address proofs, including Aadhaar Card, Voters Identity Card, Passport and Driving License
- Business Incorporation Certificate
- Last 12 months’ bank statement
- Last 2 years’ Balance Sheet, P&L statement, ITR, and Sales Tax returns
- Any other document required by the bank