PNB Business Loan Interest Rate Sep 2020

PNB offers loan to self employed and businessmen for financing the expansion or working capital requirements of their business. There are some benefits of taking loan from PNB:

• You can prepay part of your loan anytime after paying 1 % prepayment charges
• You can foreclose your entire Business loan anytime after paying 0 EMI's at foreclosure charges - Nil prepayment charges
• PNB has been rated 3.8/5.0 by customers for its service quality on MyLoanCare
• PNB has over 6,352 branches in India where you can avail service

There are multiple factors on which basis bank calculates your interest rate. Some of these factors are -

• Loan amount: Business loan rate in PNB depends upon the loan amount you apply for. Higher the loan amount, lesser will be the interest rate. Bank gives loan of minimum ₹ 50,000 to upto ₹ 15 Lakh. Interest rate for high loan amount can be lower resulting in lower EMIs.
• CIBIL Score: PNB offers loan at higher interest rate if your CIBIL score is low or vice versa. However, to get loan from PNB, your CIBIL score should be atleast 700. Higher the CIBIL Score, higher the chances of getting a loan at lowest business loan interest.
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• Revenue: PNB will offer you loan at lower interest rate if you have higher monthly revenue. Bank gives loan to the borrowers whose annual turnover is at least ₹ 0.
• Time in Business: PNB offers loan at lower rates if you have significant business experience. Minimum business existence to get loan from PNB is 0 months.

Bank have a detailed criteria to determine the eligibility of a borrower for business loans. Some of the key criteria are:

Eligibility Criteria	Description
Age	21 to 58 years
Minimum Turnover	₹ 0
Business Existence (in months)	0 months
ITR (months)	0 months
Loan Amount	₹ 50,000 to ₹ 15 Lakh
Loan Tenure	60 months
Owned House or Place of Work	Not Required
CIBIL Score	750 and above

Eligibility of Business loan in PNB relies on two important factor:

1.Your ability to repay the loan and
2.Your past track record in repayment of loans.

The main factors on which the eligibility of an applicant depends are

• Age: Age plays an important role to know your eligibility and repayment capacity. PNB offers loan to those who are at least 21 years old at the time of loan approval and maximum 58 years at the time of loan maturity.
• Loan Amount: Based on the loan amount eligibility, bank gives you loan ranging from ₹ 50,000 to ₹ 15 Lakh. To improve chances of approval, apply for a loan amount that you can comfortably service.
• Profitability and Revenue: Loan eligibility significantly depends upon profitability on your turnover, revenue and profitability. PNB requires profit for minimum 2 years and minimum business turnover of ₹ 0.
• Business Stability: Future business prospects and its stability is important to improve your eligibility for business loan. PNB requires minimum business track record of 0 months. The bank will also look for minimum growth in sales for the last three year. A decline in sales for a certain period or below a certain limit might impact your eligibility to get loan.
• ITR and Banking: Bank gives loan only after checking your income tax return and bank statements. Your ITR details for minimum 0 months and bank statement for minimum 0 months will be required by PNB.
• CIBIL Score: When checking loan eligibility, PNB will look at the complete CIBIL report. PNB will check your repayment history for all current and past loans and credit cards. Bank advise you to maintain a score of 750 and above to get loan approval.

PNB Business Loan EMI is a fixed amount that you pay each month towards the repayment of your loan till the end of tenure. Lowest EMI offered by PNB is ₹ 0.01 Lakh per lakh loan amount. EMI of PNB depends on factors like:

• Interest Rate: Higher the interest rate, higher will be the EMI. For a 60 months loan from PNB at an interest rate of 12.65% per annum, EMI will be ₹ 0.01 Lakh per Rs. one lakh loan amount. At an interest rate of 15.65% for the same loan, the EMI will be ₹ 0.01 Lakh.
• Loan tenure: Longer the loan tenure, lesser your smonthly EMI. At interest rate of 12.65% per annum, the EMI on PNB business loan would range from ₹ 0.01 Lakh to ₹ 0.01 Lakh for loan tenure ranging from 12 to 60 months.
• Amount Borrowed: PNB Loan EMI will be high if you apply for a high loan amount. For amount borrowed ₹ 50,000 , the EMI at 12.65% for 60 months would be ₹ 0.01 Lakh. Similarly for amount borrowed ₹ 15 Lakh, the EMI at 12.65% for 60 months would be ₹ 0 Cr.

• Business loan EMI calculator of PNB helps you to calculate your monthly EMI at different rate of interest
• PNB EMI calculator helps you to know your capacity to repay the loan after meeting your regular monthly expenses
• You get a rough idea about your monthly EMI and can plan your monthly budget accordingly

PNB offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Description

• Get finance up to Rs. 25,000 to setup new unit or enterprise
• Preference will be given to ST/ SC/ BPL segment
• To finance women to generate income via operating in businesses.
• No collateral required

Who is eligible?

• Women having manufacturing/ trading/ service or small business

Description

• Loan that helps the borrower to save the total interest payable on the home loan.
• Attractive and affordable interest rates.
• Pay your home loan with Nil prepayment charges. Easy processing of loan.
• Get up to 85 percent finance of cost of the product
• Flexible repayment period up to 33 months
• To provide finance to transport operators of e rickshaws or to generate employment for micro borrowers.
• No collateral or guarantor required for loan amount up to Rs. 10 lakhs

Who is eligible?

• Salaried, self employed individuals.
• Borrower who have valid license to operate the type of vehicle, and by an appropriate authority to ply vehicle for goods transportation and passengers
• An Individual, Transport Operator, Sole Proprietor, Partnership Firms, Private and Public Limited Companies

Description

• Get maximum loan up to Rs. 5 crores
• Overdraft facility available for loan amount above Rs. 1 crore
• 20 percent discount on processing fee for online loan application cases
• This loan is for financing professionally qualified medical doctors to purchase of equipments, clinics, medical centres.
• Equitable mortgage of immovable property for loan amount above Rs. 20 lakhs as security

Who is eligible?

• Qualified doctors and practitioners with minimum education of MBBS/ BAMS/ BDS/ BHMS/ BUMS
• Individuals, Partnership, LLP, Private Limited, Limited Company, Trust can take this loan

Description

• Get cash credit facility
• High loan amount of Rs. 5 crore
• To get finance for stocks and book debts which are not more that 4 months old.
• 150 percent of the loan amount as property mortgage or any other liquid securities required

Who is eligible?

• Borrowers who have financial statements of last 2 years
• Traders or other entrepreneurs involved in trading of materials, goods or equipments

Description

• Loan repayment up to a maximum period of 7 years
• Overdraft facility for service providers and cash credit facility for manufacturers
• To provide finance to buy equipments to self employed.

Who is eligible?

• Qualified professionals excluding medical professionals and traders who want to enhance own practice or set up new business
• Individuals, Partnership, LLP, Private Limited, Limited Company or Associations

Description

• Get maximum loan up to Rs. 10 lakhs
• Activities allied to Agriculture excluding crop loan and land improvement loan are eligible for this loan
• Under Pradhan Mantri Mudra Yojana, the loan is provided to non farm enterprises to generate income in manufacturing, trading and service business.

Who is eligible?

• Borrower should not be a defaulter to the bank or any other financial institution
• Any Individual, Proprietary Concern, Partnership Firm, Company, Association of Persons, LLP

In addition to interest rates, business loan also carry some other charges which include:

• Foreclosure Charges- These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. PNB allows prepayment of loan after paying 0 EMI’s with prepayment charges - Nil prepayment charges
• Processing Fee- PNB asks for a processing fee of 1.8% + taxes with applicable service tax

• Address proof of individual: Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement , utility bills
• Identity proof of individual: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card
• Business existence proof: PAN, sales tax/ excise/ VAT/ service tax registration, copy of partnership deed, trade license, certificate of practice, registration certificate issued by RBI, SEBI
• Copy of Income Tax PAN for 24 months
• Bank statement of last 6 months

✅Why to take business loan from PNB?

Bank offers loan at 12.65% rate with the lowest EMI of ₹ 1,055 per lakh. If you are paying EMI more than this then you can opt for balance transfer and relocate your loan to PNB.

✅What is the interest charged on PNB business loan?

Interest rates on Business loan in PNB are very attractive starting from 12.65% to 15.65%. Bank offer various offer for self employed professionals to get loan at very low rate of interest.

✅What is the lowest EMI per lakh on business loan from PNB?

If you apply for loan from PNB, your lowest EMI per lakh will be ₹ 1,055.

✅What is the minimum and maximum tenure of business loan in PNB?

These loans are shorter tenure loans. You can repay your loan in a flexible period of minimum 12 months to maximum echo 60 months.

✅How much business loan amount I can borrow from PNB?

PNB offers you loan if you need a minimum amount of ₹ 50,000 to a maximum amount of ₹ 15 Lakh.

✅What is the processing fee charged by PNB on business loan?

PNB charges a processing fee of 1.8% + taxes with applicable tax.

✅Is age an eligibility factor to get loan for business from PNB?

Yes, age is an important eligibility factor to get loan as you should be at least 21 years old at loan approval time and 58 years old at loan maturity time.

✅What are the prepayment charges on business loan from PNB?

Bank charges a fee in case you want to repay your entire loan amount before the end of tenure period. The fee charged by PNB is Nil prepayment charges.

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