PNB Loan: Need working capital loan? See if this suits you

Are you a trader or distributor who deals in goods and commodities and looking for a working capital loan?  If you are looking for options, this could be important for you. India’s second largest public sector bank Punjab National Bank (PNB) is providing loans for financing working capital needs of retail and wholesale traders, distributors/ agencies who deal in goods or commodities, under its ‘PNB Vyapaar’ scheme. The loan scheme can be availed for both indigenous and export goods.

The bank however, says that this capital facility (along with Non-fund based facility) is extended for genuine trade transactions and not to be utilised for hoarding or speculative purposes.

The scheme can be availed for financing traders for purchase/construction of shop or showroom, delivery van, acquiring of assets for furnishing and purchase of equipment like air conditioners, refrigerators etc.

Type of facility:

1) Cash Credit (Fund Based+ Non Fund Based)
2) Term Loan. Maximum loan amount - Need based. Loans above ticket size of Rs 10 lakh may be considered under this scheme.

Target Group:

Business entities which are individuals, firms, companies, Limited Liability Partnership (LLP), co-operative societies, dealing in business activities.
Entities having valid Registration/ License, as applicable, under local laws
Existing units should be a profit making one. New units may be allowed to avail the facility subject to compliance of security clause and other terms of scheme.

Interest Rate: As per the bank’s policy guidelines.

Collateral security:

 Collateral security in the form NSCs, KVPs, FDR, LIC (SV), liquid security and any other tangible security i.e. Equitable Mortgage of immovable property (Other than Agricultural) having realisable value at least equivalent to the loan amount. In case of factory premises value of land and building (realisation value) only be considered as collateral security.

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No additional collateral security is required, if the total loan amount is less than the value of purchase of Land & Building mortgaged with the Bank. Refer to the bank website for more information on collateral.