PNB Adds 3,00,001st Entrepreneur

New Delhi, April 05, 2010

The Credit Guarantee Fund Trust
for Micro & Small Enterprises
(CGTMSE) handed over 3,00,001st
Policy under the Credit Guarantee
Scheme to the borrowers of
Punjab National Bank in a SIDBI
Foundation day function organized
at Vigyan Bhawan, New Delhi.
Honble Finance Minister, Pranab
Mukherjee was the Chief Guest.

Speaking on the occasion, Pranab
Mukherjee appreciated the efforts
of SIDBI, Banks and Credit
Guarantee Fund Trust in
expanding the coverage.

Punjab National Banks Executive
Director M.V. Tanksale received
the Policy Certificate from the
Honble Finance Minister on behalf
of the unit M/s H.R. Building
Solutions, Patiala to whom the
bank has extended the term loan
and working capital Rs 43 lakh and
Rs 14 lakh respectively being the
3,00,001st beneficiary under
Credit Guarantee Scheme of
CGTMSE.


During the current financial year out of the total 1,51,388 guarantee issued by the Trust, the Punjab
National Bank has obtained guarantee coverage in 26069 accounts, the highest among the Member
Lending Institutions of the CGTMSE. This was possible by the pro-active measures taken by Punjab
National Bank which include mandatory coverage of eligible MSE borrowers by extending Collateral /
Third Party Guarantee free lending under Credit Guarantee Scheme of CGTMSE.

As on March 2010, PNBs SME portfolio of about Rs 35,034 crore constitutes about 19% of total Bank
Credit. During 2009-10 the Y-o-Y growth in MSME advances is 47.82%.

PNB - ACCELERATING A NEW

MOMENTUM FOR THE MICRO AND
SMALL ENTERPRISES SECTOR

MICRO AND SMALL ENTERPRISES SCHEMES

The spirit of Enterprise knows no boundaries, irrespective of
the scale of operations. Realizing the significance that, Micro
and Small Sector contributes 40% of the gross turnover in
Manufacturing Sector, gives employment to 308 lakh persons,
produces 7500 products and contributes more than 35% of the
country's exports, PNB has formulated a number of schemes
to provide a impetus for the growth of the Micro and Small
Enterprises Sector.

AMOUNT OF LOAN

O Term Loan (Need based).
O Working Capital Requirement Computed and Sanctioned
at 20% of projected realistic annual turnover basis.
O Composite Loan Limit has been raised to Rs. 100 Lakh
(for Term Loan and Working Capital).

PPLCTON
1. Simplified Loan pplication Forms for convenience of
borrowers.
2. Online pplication.
3. Speedy Processing within specified time norms, i.e:-




Upto Rs.2 Lakh

2 weeks
Over Rs.2 Lakh and upto Rs.5 Lakh 4 weeks
Over Rs.5 Lakh 8 -9 weeks



COLLATERAL SECURITY

O dvances upto Rs.10.00 Lakh without collateral security.

O dvances over Rs.10 Lakh and upto Rs.25 Lakh, based
on good track record and financial position, no collateral
insisted upon.

O dvances upto Rs.100 Lakh guaranteed under Credit
Guarantee Fund Trust for Micro & Small Enterprises (for
manufacturing & service enterprises) without collateral
security / third party guarantee.
MICRO AND SMALL ENTERPRISES SCHEMES

1.
Sarthak Udyami - Scheme for financing Micro and Small
Enterprises

2.
PNB Pragati Udyami - Scheme for financing ndustry
related Services / Business Enterprises

3. PNB Kushal Udyami

4. PNB Garrage Yogana

5. Loans for setting up ndustrial Estates

6.
PNB Vikas Udyami - Scheme for Loans acquisition of SO -
9000 Series Certification

7. SME Sahayog Scheme

8.
PNB rtisan Credit Card - Scheme to provide hassle free
financial support to rtisan

9.
PNB Laghu Udyami Credit Card - simplified Loan
Delivery Mechanism

10
.
Scheme Ior Advances to Small Road Transport Operators

11
.

Scheme Ior Advances to Owner-Drivers oI Taxi Cars, Three
Wheeler, Station Wagons, Tempos, Etc.


. SARTHAK UDYAMI - SCHEME FOR FINANCING
MICRO AND SMALL ENTERPRISES

Purpose of the Loan
For setting up new units; expansion, modernization &
renovation of existing units; purchase of land, construction of
building, machinery, equipment etc; and working capital
facilities.
EIigibiIity
MicroEnterprises: Enterprises engaged in the
Manufacturing or Production, Processing or Preservation of
goods with investment in plant & machinery upto Rs. 25 lakh.
SmaII Enterprises: Enterprises engaged in the
Manufacturing or Production, Processing or Preservation of
goods with investment in plant & machinery above 25 lakh
upto 500 lakh.
Loan amount
Need based. However Credit requirement upto 100 lakh for
Working Capital and Term loan can also be provided as
Composite loan.
Margin


Upto Rs.2,00,000/- NIL
Above Rs.2.00 Iakh upto Rs. 5 Iakh 5%
Above Rs. 5 Iakh 20%



Repayment
Upto 7 years (for term loan) depending upon projected
profitability, over and above the gestation period of 6 to 12
months.
CoIIateraI Security
- No Collateral Security and/or Third Party Guarantee for Loans
upto Rs.100 lakh covered under Guarantee Scheme of Credit
Guarantee Fund Trust for Micro & Small Enterprises
(CGTMSE).
2. PNB PRAGATI UDYAMI



(Scheme for financing ndustry related Services / Business
Enterprises)
The financial assistance to both new and existing units, for
acquiring fixed assets i.e. land, factory, building, plants,
machinery and working capital facilities for Service industry
like dvertising gencies, Marketing / ndustry Consultancy,
Typing / Xerox Centre, ndustrial Testing Labs, Cyber Caf,
uto-repair, Laundry & Dry Cleaning, SD / STD Booths, Cable
TV Networks, Beauty Parlor and Crche, etc.
ELIGIBILITY
Unit with investment in fixed assets excluding the cost of land
and building not exceeding Rs 10 lakh, irrespective of location
of the unit.
NATURE OF LIMIT
Need based.
MARGIN











For Term Loan

(i) Upto Rs 25000/- NiI
(ii) Above Rs 25000/- Upto Rs 5 Iakh 5%
(iii) Above Rs 5 Iakh 20%
(iv)
For oId machinery minimum Iife
of 5 years. In case of oId Gen-set
it wouId not be oIder than 3
years
25%



For Working CapitaI


For Stock
(v) Upto Rs 25000/- NiI
(vi)
Above Rs 25000/- upto Rs 5
Iakh
5%
(vii) Above Rs 5 Iakh 20%
For Book Debts
(viii) Upto Rs 5 Iakh 20%
(ix) Above Rs 5 Iakh 25%


* FOR WOMEN BENEFCRES MRGN REQURMENT S
ONLY 10%.



REPAYMENT

5 to 7 years (for term loan) excluding moratorium period
depending upon the earning capacity of the unit.



COLLATERAL SECURITY

No collateral security for loans upto Rs 10 lakh. For loans in
excess of Rs 10 lakh and upto Rs 25 lakh no collateral security
required, if the unit is having good track record & financial
position. n other cases collateral security or third party
guarantee is asked only in cases where primary security is
inadequate or for other valid reasons and not as a matter of
routine. No Collateral Security & third party guarantee for
Loans upto Rs 100 lakh covered under Credit Guarantee Fund
Trust for Micro and Small industries Scheme (CGTMSE).



3. PNB KUSHAL UDYAMI

LONS TO CRFTSMEN & TECHNCLLY QULFED
ENTREPRENEURS

To set up Micro and Small units, for purchase of fixed assets
and meeting working capital needs.


PURPOSE

O For acquisition of fixed assets (plant, machinery, land,
building, tools, etc.)
O For working capital requirements within the ceiling limits
of Rs 3 lakh / Rs 5 lakh as the case may be.



ELIGIBILITY


Technically qualified entrepreneurs and / or those having
adequate technical practical experience in a particular field of
technology.;



MARGIN


For Term Loan
(i)
Upto Rs 2 Iakh NiI
(ii)
Above Rs 2 Iakh Upto Rs 3 Iakh 0%
(iii)
Above Rs 3 Iakh Upto Rs 4 Iakh 5%
(iv)
Above Rs 4 Iakh Upto Rs 5 Iakh 20%



AMOUNT OF LOAN


Maximum Rs 3 lakh in case of individuals and Rs 5 lakh in
case of partnership firms or joint stock companies. (n case of
ancillary unit or industry with joint financing of SF / Bank higher
assistance of Rs 5 lakh for individual and Rs 10 lakh for
groups).






REPAYMENT


5 to 7 years for term loan including moratorium period.



COLLATERAL SECURITY


No collateral security for loans upto Rs 10 lakh. For loans in
excess of Rs 10 lakh and upto Rs 25 lakh no collateral security
required, if the unit is having good track record & financial
position. n other cases collateral security or third party
guarantee is asked only in cases where primary security is
inadequate or for other valid reasons and not as a matter of
routine.



LOCATION OF PROJECT


Preferably the unit should be set up in an industrial estate
where there is provision for suitable accommodation with the
requisite facilities such as water, power, transport and
communication. Project set up in industrial areas, zones or
sites specifically declared as undeveloped by the State
Government, concerned agencies / departments will be
considered.

The required accommodation should, as far as possible, be
acquired on rental or hire-purchase basis. This will ensure that
the investment in fixed assets is made for purchase of the
required machinery and equipment, thereby enabling the
entrepreneurs to make the best use of our financial assistance.


4. PNB GARRAGE YOJANA



For technoIogy upgradation of AutomobiIe Garrage
(Workshops)



PURPOSE


To meet the expenditure on:


O Purchase of capital equipment, need based civil works
and acquisition of additional land;
O cquisition of technical know-how, designs, drawings;

O Upgrading process technology and products with thrust
on quality improvement;
O Cost of Technology Quality Management (TQM) and
acquisition of SO 9000 series certification; and
O Preliminary and pre-operative expenses to the extent of
10% of project cost.


PROJECT OUTLAY


The project outlay on fixed assets already created & items
indicated above should not exceed Rs 10 lakh (as per the
investment in equipments ceiling of service industries under
Micro Enterprises).



ELIGIBILITY


O Small Scale Service Units including those which go in for
modernisation / technology upgradation;
O The outlay on land and building should not exceed 25%
of the outlay on modernisation / technology upgradation
programme;
O The units should be in operational for at least one year
and not be default to bank.

SALIENT FEATURES


O Need based extent of the loan
O Minimum promoter's contribution required is 10% of the
cost of the project.
O Repayment period - of 5 to 7 years (excluding
moratorium period).
O Working capital facilities will be of continuing nature
subject to review / renewal every year.

COLLATERAL SECURITY


O No Collateral Security & Third Party Guarantee for Loans
upto Rs.100 lakh covered under Credit Guarantee Fund
Trust for Micro & Small Enterprises (CGTMSE).
O n other cases, collateral security and / or third party
guarantee is asked only in cases where primary security

is inadequate or for other valid reasons and not as a
matter of routine.


5. LOANS FOR SETTING UP INDUSTRIAL
ESTATES FINANCING COOPERATIVE,
PARTNERSHIP FIRMS & JOINT STOCK
COMPANICES OF ENTREPRENEURS SOCIETIES
FOR ESTABLISHING INDUSTRIAL ESTATES



To purchase Iand and construction of factory sheds.



ELIGIBILITY

Cooperative Societies, partnership firms and joint stock
companies who have sponsored projects for establishing
economically viable industrial estates and have the necessary
approval of State Directorate of ndustries and local
authorities, would be assisted under the Scheme.



REQUIREMENTS TO BE FULFILLED

1. The State Government should have declared the area on
which these constructions have to be made as an
industrial area.
2. The plan etc. should be approved by the authorities like
Municipal Corporation, ndustries Department, Factories
nspector etc. or any other statutory authority constituted
by the State / Central Govt.
3. Title of the land is verified by Bank's Legal dvisor as
clear marketable and free from any encumbrances.



MARGIN


25% of the cost of (i) acquisition of land; (ii) development of
land and (iii) construction of shed / buildings shall have to be
borne by the sponsors.








MOUNT OF LON - Need based.


REPYMENT - Maximum 10 years.



MEDUM TERM LONS FOR LND & NDUSTRL SHEDS
TO TECHNCL ENTREPRENEURS The Bank also provides
Credit assistance to individual technical entrepreneurs for
purchase of land and construction of work shed for their
proposed industry.



MRGN - 25%



REPYMENT - 8 years



SECURTY



Valid mortgage of land, buildings and other immovable assets
of the entrepreneurs (existing as well as to be created at a
later date). The borrowers should agree that during the period
of the loan they would not, without the written consent of the
bank, create in any manner further charge, lien or other
encumbrances on the security given to the bank in respect of
such advances or create any interest in such security in favour
of any party or person.



. PNB VIKAS UDYAMI


PNB VIKAS UDYAMI

Loans for acquiring ISO-9000 Certification



PURPOSE OF THE LOAN


For acquiring SO-9000 certification, Expenses on
consultancy, documentation, audit certification fees, equipment
and calibrating instruments required would be taken into
account for determining loan requirement.



ELIGIBILITY


Existing SS units (Micro & Small Enterprises) that have been
in operation for a period of at least four years; have earned
profit and / or declared dividend during the preceding two

financial years; not be in default to any institution / banks in
payment of their dues, and have been exporting their products,
directly or indirectly or have plans to manufacture products for
exports.


LOAN AMOUNT

Need based, by way of term loan.



MARGIN

15% of the project cost. (Margin for women beneficiaries 10%)



REPAYMENT


Not exceeding 5 years including moratorium period upto 1
year.



COLLATERAL SECURITY

No Collateral Security & Third Party Guarantee for Loans upto
Rs.100 lakh covered under Credit Guarantee Fund Trust for
Micro & Small Enterprises (CGTMSE).

n other cases, collateral security or third party guarantee is
asked only in cases where primary security is inadequate or
for other valid reasons and not as a matter of routine.



. PNB SME SAHAYOG SCHEME



FinanciaI Assistance to meet unforeseen
expenditure of SME Enterprises having good track
record.



PURPOSE



For contingencies like additional purchase of raw material
including packing material/ handling charges for the execution
of bulk orders, taking part in national / international trade
exhibition, payment of consultancy charges, machinery repair,
labour payments, etc.



ELIGIBILITY



Existing borrowers whose accounts have been classified as
standard assets for the last three consecutive financial years
and are enjoying credit limits above Rs. 20 lakh.
For term loans & working capital of above Rs. 20 lakh, the
threshold credit rating should be 'BB' (on the closing of
previous financial year). Credit risk rating for any of the earlier
years should not be below "B.



EXTENT OF LOAN



The facility is extended by way of clean cash credit limit.
Special credit limit for an amount equal to 20% of the
aggregate working capital limits (i.e. fund based and non fund
based separately), subject to a maximum of Rs. 25 lakh.



ASSESSMENT



simple assessment will be made by computing 20% of the
aggregate cash credit working capital limits (i.e. limits against
stock and bills put together) or Rs.25 lakh which ever is lower.



REPAYMENT



The borrowers are free to utilize the facility upto 12 times in a
year. Each amount of withdrawal is repayable within maximum
period of two months and there should be a gap of 15 days
between the date of complete repayment of outstanding and
the next withdrawal.



SECURITY



Collateral security to be obtained as per bank's extant
guidelines. The charge on available security by way of primary/
collateral to the existing sanctioned limits will be extended to
cover the clean cash credit limit.



8. PNB ARTISAN CREDIT CARD





(Simplified Loan delivery mechanism to provide hassle free
financial support to rtisans)



OBJECTIVE


O To provide hassle free financial support to rtisans

O To make credit delivery simple and easy


SECURITY


Secured by Hypothecation of stocks in trade, receivables,
machinery, office equipment, etc. No collateral security
required



REPAYMENT


Term loans will be repayable in monthly / quarterly installments
within 3 to 5 years depending upto the project.



NATURE OF LIMIT


Term Loan & Cash Credit Limit



MARGIN


Extent of Limit Margin
(i) Upto Rs. 2.00,000 NiI




VALIDITY


Card is valid for three years



Nature of Iimit


Term loan and working capital (both upto Rs. 2 lakh)



ELIGIBILITY


O ll artisans (Existing & New) involved in production /
manufacturing process (and otherwise eligible for credit
facilities for carrying out the proposed activities under
any of the existing bank schemes).
O Preference is given to artisans registered with
Development Commissioner (Handicrafts).
O Thrust on financing in clusters of artisans and artisans
who have joined to form Self Held Groups (SHGs).
O ll existing / new artisan borrowers of the bank enjoying
credit facilities upto Rs. 2 lakh and having satisfactory

dealings with the bank.
O Beneficiaries of other Government sponsored loan
schemes are not eligible.


REPAYMENT


Term loans will be repayable in monthly / quarterly installments
within 3 to 5 years depending upto the project.



COLLATERAL SECURITY



No Collateral security required.




9. PNB LAGHU UDYAMI CREDIT CARD - A
SimpIified Loan DeIivery Mechanism



OBJECTIVE:



To provide hassle free financial support to Small Business
units, Retail Traders, rtisans, Village ndustries, Micro &
Small Enterprises (Manufacturing & Services) & Tiny Units,
Professionals and Self Employed Persons, etc.



ELIGIBILITY



Borrowers belonging to aforesaid categories enjoying Cash
Credit limits upto Rs. 10 lakh and having satisfactory dealings
with the bank for the last three years.



LOAN AMOUNT



Extent of limit Maximum upto Rs. 10 lakh
Nature of limit Cash Credit



ASSESSMENT OF CREDIT CARD LIMIT



Credit Card Limit
Small business, retail traders, etc upto 20% of the annual
turnover
Professional and self-employed persons 50% of their gross
annual income as per ncome Tax Return

Micro & Small Enterprises units as per simplified turnover
method.


MARGIN



Extent of Limit Margin
(i) Upto Rs.2.00 Iakh NiI
(ii)
Above Rs.2.00 Iakh upto Rs.
5.00 Iakh
5%
(ii) Above Rs 5.00 Iakh 20%




SECURITY



Hypothecation of stock in trade, receivable, machinery, office
equipment, etc.



COLLATERAL SECURITY (For Micro & SmaII
Enterprises )



No Collateral Security & Third Party Guarantee for Loans upto
Rs.100 lakh covered under Credit Guarantee Fund Trust for
Micro & Small Enterprises (CGTMSE).

n other cases, collateral security or third party guarantee is
asked only in cases where primary security is inadequate or
for other valid reasons and not as a matter of routine.