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FM Assignment

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Tanushri tisha
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10 views3 pages

FM Assignment

Uploaded by

Tanushri tisha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NAME- TANUSHARI

COURSE- B.COM(HONS)
ROLL NO- BCH/23/52

DATE OF VISIT- 11TH NOVEMBER 2024


BRANCH LOCATION- SECTOR-18 , ROHINI DELHI-110089

SUMMARY OF INQUIRY
Punjab National Bank (PNB) offers various business loan options tailored to meet the
needs of entrepreneurs, small businesses, and large enterprises. Here are the main types
of business loans and key details:
1. MSME Prime Plus: Designed for MSMEs and agri-infrastructure businesses, this loan
can be used for both working capital and fixed asset purchases.
2. Compressed Biogas (CBG) Loan: Under the SATAT scheme, this loan supports
businesses setting up CBG plants. Loan tenures for working capital are renewable
annually, and term loans can extend up to 12 years.
3.PNB Shikhar Scheme: Focused on MSMEs in Jammu & Kashmir and Ladakh, this
loan offers credit for sectors like hospitality, travel, and local crafts.

Eligibility Criteria

● Minimum Business Operation: Typically, PNB requires businesses to be


operational for at least 3 years.
● Financial Health: Positive cash flow and profits for the past two years are often
required.
● Turnover: Some schemes may require a minimum annual turnover, commonly
around ₹55 lakh, for eligibility.
● Credit Score: A good credit score is essential, as it influences loan approval and
interest rates.
● Documentation: Applicants need to provide financial documents, such as audited
balance sheets, income tax returns, and bank statements for the past two years​

Loan Amount
● MSME Loans: For MSME Prime Plus, the loan amount ranges from ₹10 lakh to
₹100 crore. This scheme allows funds for working capital and fixed asset
purchases.
● PNB Shikhar Scheme: Designed for businesses in Jammu & Kashmir and
Ladakh, this scheme offers up to ₹2 crore, with smaller loans (up to ₹10 lakh)
qualifying for the Pradhan Mantri Mudra Yojana (PMMY) guarantee.
● Compressed Biogas (CBG) Loan: Loan amounts start from ₹1 crore for setting
up CBG plants​

Interest Rates

● General MSME Loans: Interest rates vary based on collateral coverage:


○ < 50% Collateral: RLLR+BSP+0.50% to RLLR+BSP+1.50%
○ 50-100% Collateral: RLLR+BSP+0.35% to RLLR+BSP+1.35%
○ > 100% Collateral: RLLR+BSP+0.20% to RLLR+BSP+1.25%
● CBG Loans: MSME advances are linked to RLLR, while other businesses follow
a 1-year MCLR-based rate​

Repayment Tenure

● Working Capital Loans: Generally repaid within 1 year but can be renewed
annually.
● Term Loans: Repayment terms range from 7 to 12 years, with some schemes
including a moratorium period (typically up to 2 years)​

Collateral Requirements

● MSME Prime Plus: Requires collateral between 30-75%, depending on business


type (manufacturing, services, etc.).
● PNB Shikhar Scheme: Loans under ₹10 lakh may not require collateral if
covered under the PMMY scheme

DOCUMENTS REQUIRED

Identity & Address Proof: PAN, Aadhaar, Passport, or Voter ID for personal and
business verification.

Financial Documents: Past 6 months’ bank statements, last 2 years' Income Tax
Returns (ITRs), and audited balance sheets.
Business Proof: Registration certificate, GST registration, or trade license.

Collateral Documents (if needed): Details of pledged assets, like property papers
for secured loans

APPLICATION PROCESS

To apply for a business loan from Punjab National Bank (PNB), follow these steps:

1. Check Eligibility: Confirm that your business meets PNB’s eligibility criteria
based on its operational years, financial health, and turnover.
2. Prepare Documents: Gather the required documents, including identity proofs,
business registration, financial statements, and collateral details (if applicable).
3. Visit the Bank or Apply Online: You can visit a nearby PNB branch to apply in
person or check for online application options on the PNB website. Online
applications may be available for some business loan types.
4. Submit Application & Documents: Submit your completed application form
along with all necessary documents. PNB may conduct an initial assessment of
your application.
5. Loan Processing & Approval: After submission, PNB reviews the application,
verifies documents, and assesses creditworthiness. Processing time varies but
generally takes 5-10 days.
6. Loan Disbursement: Once approved, the loan amount is disbursed to your
business account.

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