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PNB
Home >> PNB - Accelerating a New Momentum for the SSI Sector

 

SSI SCHEMES

The spirit of Enterprise knows no boundaries, irrespective of the scale of operations. Realizing the significance that, SSI Sector contributes 40% of the gross turnover in Manufacturing Sector, gives employment to 283 lakh persons, produces 7500 products and contributes more than 35% of the country's exports, PNB has formulated a number of measures to provide a impetus for the growth of the SSI Sector.


AMOUNT OF LOAN

• Term Loan (Need based).
• Working Capital Loan liberally sanctioned at 20% of projected annual turnover basis. Composite Loan Limit has been raised to Rs. 100 Lakh (for Term Loan Working Capital).

Margin : Comfortable margin options available.
• Expedious sanction upto Rs.10.00 Lakh for borrowers having good track record, under Laghu Udyami Card and Rs. 2 lakh under PNB Artisans Credit Card Scheme.
• Simplified Loan Application Forms for convenience of borrowers.
• Loan Applications complete in all respects duly receipted & acknowledged.
• Speedy Processing within specified time norms.

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

RATE OF INTEREST * BPLR 11.50% p.a

• Advances upto Rs.50, 000 at BPLR* minus 2%.
• Advances above Rs.50,000 & upto Rs.2 Lakh at BPLR minus 1%.
• Advances Above Rs.2 Lakh & upto Rs.20 Lakh at BPLR.
• Advances Above Rs.20 Lakh - Linked with Credit Risk Rating.
• Interest Rebate of 0.50% and margin at 10%, irrespective of loan amount, available to women borrowers under Mahila Sashaktikaran Abhiyan.

Term Premia of 0.50% is to be added for arriving at interest rate in respect of loans repayable in 3 years & above. *BPLR 11.50% p.a )


COLLATERAL SECURITY

• Advances upto Rs.5.00 Lakh without collateral security.
• Advances over Rs.5 Lakh and upto Rs.25 Lakh, based on good track record and financial position, no collateral insisted upon.
• Advances upto Rs.25 Lakh guaranteed under Credit Guarantee Fund Trust for Small Industries Scheme (for manufacturing SSI, service Industries & IT units) without collateral security.


SSI SCHEMES


1. SARTHAK UDYAMI - SCHEME FOR FINANCING SSI

LOANS TO SMALL SCALE INDUSTRIES

To set up new units, expansion, modernisation & renovation of existing units, for purchase of land, constructions of building, machinery, equipment etc. & working capital facilities.

ELIGIBILITY FOR FINANCING SSI

Units engaged in industrial activity with original investment in plant & machinery not exceeding Rs 100 lakh for SSI and ancillary units. Investment limit in plant & machinery for specified Hosiery, Handtools, Pharmaceuticals, Sports Goods, Food, Allied Industries, Chemical and Chemical Products, Glass & Ceramics, Roofing and Flooring tiles, Ceramic table wares and Allied items in Stone wares etc, Auto parts & Aucillaries & Stationary items not exceeding Rs 500 lakh.

ELIGIBILITY FOR FINANCING TINY UNITS

Unit with investment in plant & machinery not exceeding Rs 25 lakh , irrespective of location of the unit.

AMOUNT OF LOAN

Units engaged in industrial activity with original investment in plant & machinery not exceeding Rs 100 lakh for SSI and ancillary units. Investment limit in plant & machinery for specified Hosiery, Handtools, Pharmaceuticals, Sports Goods, Food, Allied Industries, Chemical and Chemical Products, Glass & Ceramics, Roofing and Flooring tiles, Ceramic table wares and Allied items in Stone wares etc, Auto parts & Aucillaries & Stationary items not exceeding Rs 500 lakh.

MARGIN* (For Term Loan)
 
(i)
Upto Rs 25000/-
Nil
(ii)

Above Rs 25000/- Upto Rs 5 lakh

15%
(iii)
Above Rs 5 lakh
20%
(iv)
For old machinery minimum life of 5 years. In case of old Gen-set it would not be older than 3 years
25%
*FOR WOMEN BENEFICIARIES 10% , wherever the margin requirement is more than 10%.
(For Working Capital)
 
(v) CC(P) & CC(H) upto Rs 25000/-
Nil
(vi) CC(P) Above Rs 25000/-
15%
(vii) CC(H) Above Rs 25000/- upto Rs 5 lakh
15%
(viii) CC(H) Above Rs 5 lakh
20%
(ix) Against Book Debts upto Rs 5 lakh
20%
(x) Above Rs 5 lakh
25%
 
REPAYMENT

5 to 7 years (for term loan) depending upon the project profitability over and above the gestation period of 6 to 12 months.

COLLATERAL SECURITY

No collateral security for loans upto Rs 5 lakh. For loans in excess of Rs 5 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In 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 25 lakh covered under Credit Guarantee Fund Trust for small industries Scheme (CGTSI).

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2. PNB SME SAHAYOG SCHEME

Eligibility

1. The scheme is applicable to existing borrowers whose accounts have been classified as standard assets as on 31 March for the last 3 consecutive years and is enjoying credit limits above Rs.20 lakh.
2. For sanctioned limits (Term loan & working capital) of above Rs.20 lakh, the threshold credit rating should be ‘ BB' as on the closing of previous financial year. However, credit risk rating for any of the earlier years should not be below 'B'.

EXTENT OF LOAN :-

The eligible borrowers will be sanctioned a special credit limit for an amount equal to 20% of the aggregate working capital limits (i.e. fund based and non fund based separately) sanctioned to the unit, subject to a maximum of Rs.25 lakh and no further adhoc facility should be sanctioned.

PURPOSE :-

The limit can be utilized for contingencies like additional purchase of raw materials including packing materials/handling charges for the execution of bulk orders, taking part in national/international trade exhibitions for creating market base, payment of consultancy charges, repairs to machinery, labour payments, etc. As the facility will be extended only to borrowers of proven track record and parties of the high standing & integrity, utilization of the limit should be left to the discretion of the borrower. Branch officials should, however, ensure that the terms of repayment are promptly complied with.

ASSESSMENT :-

A simple assessment will be made by computing 20% of the aggregate cash credit working capital limits (i.e. limits against stocks and bills put together) or Rs.25 lakh, whichever is lower. “A unit having aggregate working capital limits of Rs.25 lakh will be eligible for a limit of Rs.5 lakh and a unit having aggregate working capital limit of Rs.150 lakh or above, will be eligible for a limit of Rs.25 lakh”.

ACCOUNTING PROCEDURE :-

The adhoc facility will be made available in the existing account by way of increasing the existing limit by 20% or Rs.25 lakh, whichever is lower for the stipulated period for which the facility is being extended. However, the limit so enhanced will automatically be reduced to the original limit on expiry of the stipulated period. The limit will have to be reviewed once in every year along with the other working capital limits. The limit has to be enhanced/reduced if there is a revision in the quantum of working capita1limits sanctioned.

REPAYMENT :-

The borrowers are free to utilize the facility up to 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. In any case, an amount once drawn cannot remain outstanding for more than 2 months. The account is not meant for utilization as a running cash credit account.

SECURITY :-

Collateral security 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.

LOANING POWER :-

The Sanctioning Authority can grant adhoc facilities in the shape of clean cash credit limit to the extent of 20% of working capital facility or Rs.25 lakh, whichever is lower within their vested loaning powers.

INTEREST RATE :-

The rate of interest shall be charged as per extant guidelines linked with credit risk rating. No additional rate of interest be charged as applicable to adhoc limits.

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3. PNB VIKAS UDYAMI

SCHEME FOR LOANS ACQUISITION OF ISO - 9000 SERIES CERTIFICATION

Financial assistance to be provided for acquiring ISO-9000) certification, i.e., expenses on consultancy, documentation, audit certification fees, equipment and calibrating instruments required would be taken into account for determining the loan requirement.

ELIGIBILITY

Exising SSI units having good record of past performance. The concerns should 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 institution / banks in payment of their dues, and have been exporting their products, directly or indirectly or have plans to manufacture products for exports.

AMOUNT OF LOAN

Need based, by way of term loan.

MARGIN*

(For Term Loan)
15% of the project cost and may be in the form of additional share capital contribution, interest free unsecured loans or internal cash accruals during implementation period. (Debt Equity Ratio: Not more than 2:1).

*FOR WOMEN BENEFICIARIES 10% , irrespective of the scheme, wherever the margin requirement is more than 10%.

REPAYMENT

Not exceeding 5 years including moratorium period upto 1 year.

COLLATERAL SECURITY

No collateral security for loans upto Rs 5 lakh. For loans in excess of Rs 5 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In 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 25 lakh covered under Credit Guarantee Fund Trust for small industries Scheme (CGTSI).

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4. PNB PRAGATI UDYAMI

(Scheme for financing SSI 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 Advertising Agencies, Marketing / Industry Consultancy, Typing / Xerox Centre, Industrial Testing Labs, Cyber Café, Auto-repair, Laundry & Dry Cleaning, ISD / STD Booths, Cable TV Networks, Beauty Parlour and Creche, 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. (Composite loans upto Rs 100 lakh)

 
MARGIN
(For Term Loan)
 
(i)
Upto Rs 25000/-
Nil
(ii)

Above Rs 25000/- Upto Rs 5 lakh

15%
(iii)
Above Rs 5 lakh
20%
(iv)
For old machinery minimum life of 5 years. In case of old Gen-set it would not be older than 3 years
25%
 
(For Working Capital)
 
(v) CC(P) & CC(H) upto Rs 25000/-
Nil
(vi) CC(P) Above Rs 25000/-
15%
(vii) CC(H) Above Rs 25000/- upto Rs 5 lakh
15%
(viii) CC(H) Above Rs 5 lakh
20%
(ix) Against Book Debts upto Rs 5 lakh
20%
(x) Above Rs 5 lakh
25%
 
*FOR WOMEN BENEFICIARIES 10% wherever the margin requirement is more than 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 5 lakh. For loans in excess of Rs 5 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In 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 25 lakh covered under Credit Guarantee Fund Trust for small industries Scheme (CGTSI).


5. PNB ARTISAN CREDIT CARD

(Scheme to provide hassle free financial support to Artisans)

OBJECTIVE

• To provide hassle free financial support to Artisans
• To make credit delivery simple and easy

SECURITY

Secured by Hypothecation of stocks in trade, receivables, machinery, office equipment, etc.

REPAYMENT

Term loans will be repayable in monthly / quarterly instalments within 3 to 5 years depending upon the project profitability over & above the gestation period of 6 to 12 months.

NATURE OF LIMIT

Term Loan & Cash Credit Limit

MARGIN
 
  Extent of Limit Margin
(i)
Upto Rs. 2.00,000 Nil
 
FIXATION OF LIMIT

• TERM LOAN: Need based
• CASH CREDIT LIMIT: 20% of anticipated turnover (as per Nayak Committee)

ELIGIBILITY

• All 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)
• Preference is given to artisans registered with Development Commissioner (Handicrafts)
• Thrust in financing on clusters of artisans and artisans who have joined to form Self Help Groups (SHGs)
• All existing artisan borrowers of the bank enjoying credit facilities upto Rs 2 lakh and having satisfactory dealings with the bank. Validity of the Cards three years.

COLLATERAL SECURITY

Not Required.

Beneficiaries of other Government sponsored loan schemes are not eligible. A simplified loan delivery mechanism.

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6. PNB LAGHU UDYAMI CREDIT CARD - A Simplified Loan Delivery Mechanism

OBJECTIVE:

To provide hassle free financial support to Small business units, Retail Traders, Artisans, Village Industries, Small Scale Industrial Units, Small Scale Services & Business Enterprises (SSSBEs) and Tiny Units, Professionals and Self Employed Persons, etc.

ELIGIBILITY:

Borrowers belonging to aforesaid categories enjoying Cash Credit limits upto Rs 10 lakh and whose dealings with the bank have been satisfactory for the last three years are eligible for issuance of Laghu Udyami Credit Card.

ASSESSMENT OF CREDIT CARD LIMIT:

The PNB Laghu Udyami Credit Card limit shall be fixed as follows:
• For small business, retail traders, etc. 20% of the annual turnover.
• For professionals and self-employed persons, 50% of their gross annual income as per Income Tax return.
• For Small Scale Industrial Units, Small Scale Services & Business Enterprises (SSSBEs) including tiny sector units the assessment norms in vogue as per the Nayak Committee recommendations.

AREA OF OPERATION:

facility available at all branches.

EXTENT OF LIMIT:

Maximum upto Rs 10 lakh.

NATURE OF LIMIT:

Cash Credit.

MARGIN
 
  Extent of Limit Margin
(i)
Upto Rs 50,000/-
Nil
(ii)
Above Rs 50,000/- upto Rs 10 lakh
10%
 
Rate of Interest:

Advance upto Rs 50,000 at BPLR minus 2%.
Advance above Rs 50,000 & upto Rs 2 lakh at BPLR minus 1%.
Advance above Rs 2 lakh & upto Rs 10 lakh at BPLR

SECURITY:

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

COLLATERAL SECURITY:

No collateral security for loans upto Rs 5 lakh. For loans in excess of Rs 5 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In 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 25 lakh covered under Credit Guarantee Fund Trust for small industries Scheme (CGTSI).

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7. LOANS FOR SETTING UP INDUSTRIAL ESTATES

FINANCING COOPERATIVE, PARTNERSHIP FIRMS & JOINT STOCK COMPANICES OF ENTREPRENEURS SOCIETIES FOR ESTABLISHING INDUSTRIAL ESTATES

To purchase land and construction of factory sheds.

ELIGIBILITY FOR FINANCING SSI:

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 Industries 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, Industries Department, Factories Inspector etc. or any other statutory authority constituted by the State / Central Govt.
3. Title of the land is certified by Banks Legal Advisor 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 bnorne by the sponsors.

AMOUNT OF LOAN

- Need based.

REPAYMENT

- Maximum 10 years.

MEDIUM TERM LOANS FOR LAND & INDUSTRIAL SHEDS TO TECHNICAL ENTREPRENEURS The Bank is also considering request of individual technical entrepreneurs for requiring land and construction of workshed for their proposed industry, if found technically feasible and economically viable

MARGIN

- 25%

REPAYMENT

- 8 years

SECURITY

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.

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8. PNB KUSHAL UDYAMI

LOANS TO CRAFTSMEN & QUALIFIED TECHNICIAN ENTREPRENEURS SMALL SCALE INDUSTRIES

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

PURPOSE

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

ELIGIBILITY FOR FINANCING SSI

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 lakh
Nil
(ii) Above Rs 2 lakh Upto Rs 3 lakh
10%
(iii) Above Rs 3 lakh Upto Rs 4 lakh
15%
(iv) Above Rs 4 lakh Upto Rs 5 lakh
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. (In 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 5 lakh. For loans in excess of Rs 5 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In 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.


9. PNB GARRAGE YOGANA

For technology upgradation of Automobile Garrage (Workshops)

Purpose

To meet the expenditure on:
• Purchase of capital equipment, need based civil works and acquisition of additional land;
• Acquisition of technical know-how, designs, drawings;
• Upgrading process technology and products with thrust on quality improvement;
• Cost of Technology Quality Management (TQM) and acquisition of ISO 9000 series certification; and
• 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

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

Salient Features

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

Collateral Security

- No Collateral Security & Third Party Guarantee for Loans upto Rs.50 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). - In 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.


 
 
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