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Home >> MSME Banking >> Schemes for Financing Micro and Small Enterprises
 
 
PNB - ACCELERATING A NEW MOMENTUM FOR THE MICRO AND SMALL ENTERPRISES SECTOR
 
 

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
 
  • Term Loan (Need based).
  • Working Capital Requirement Computed and Sanctioned at 20% of projected realistic annual turnover basis.
  • Composite Loan Limit has been raised to Rs. 100 Lakh (for Term Loan and Working Capital).
     
APPLICATION
  1. Simplified Loan Application Forms for convenience of borrowers.
  2. Online Application.
  3. Speedy Processing within specified time norms, i.e:-
 
Upto Rs.2 Lakh 2 weeks
Above Rs.2 Lakh and upto Rs.50 Lakh 4 weeks
Above Rs.50 and upto Rs.100 Lakh 5 -6 weeks
Above Rs. 100 lakh and upto Rs. 100 crore 6-7 weeks
Above Rs. 100 crore 8-9 weeks
 
 
Click here to view rate of interest
 
COLLATERAL SECURITY
 
  • Advances upto Rs.10.00 Lakh without collateral security.
 
  • Advances over Rs.10 Lakh and upto Rs.25 Lakh, based on good track record and financial position, no collateral insisted upon.
 
  • Advances 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 Industry related Services / Business Enterprises
     
3.
  PNB Kushal Udyami
     
4.
  PNB Garrage Yogana
     
5.
  Loans for setting up Industrial Estates
     
6.
  PNB Vikas Udyami - Scheme for Loans acquisition of ISO - 9000 Series Certification
     
7.
  SME Sahayog Scheme
     
8.
  PNB Artisan Credit Card - Scheme to provide hassle free financial support to Artisan
     
9.
  PNB Laghu Udyami Credit Card - A simplified Loan Delivery Mechanism
     
10.   Scheme for Advances to Small Road Transport Operators
     
11.   Scheme for Advances to Owner-Drivers of Taxi Cars, Three Wheeler,  Station Wagons, Tempos, Etc.
     
1. 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.

Eligibility

Micro Enterprises: Enterprises engaged in the Manufacturing or Production, Processing or Preservation of goods with investment in plant & machinery upto Rs. 25 lakh.

Small 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 lakh upto Rs. 5 lakh 15%
Above Rs. 5 lakh 20%

Repayment

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

Collateral 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 Industry 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 Parlor and Crèche, 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/- 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
For Stock
(v) Upto Rs 25000/- Nil
(vi) Above Rs 25000/- upto Rs 5 lakh 15%
(vii) Above Rs 5 lakh 20%
For Book Debts
(viii) Upto Rs 5 lakh 20%
(ix) Above Rs 5 lakh 25%
 * FOR WOMEN BENEFICIARIES MARGIN REQUIRMENT IS 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. 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 100 lakh covered under Credit Guarantee Fund Trust for Micro and Small industries Scheme (CGTMSE).
3. PNB KUSHAL UDYAMI
 

LOANS TO CRAFTSMEN & TECHNICALLY QUALIFIED ENTREPRENEURS
To set up Micro and Small 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
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 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. 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.
4. PNB GARRAGE YOJANA
 
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.100 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).
  • In 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 land 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 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 verified by Bank’s 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 borne by the sponsors.
 
AMOUNT OF LOAN - Need based.
 
REPAYMENT - Maximum 10 years.
 
MEDIUM TERM LOANS FOR LAND & INDUSTRIAL SHEDS TO TECHNICAL ENTREPRENEURS The Bank also provides Credit assistance to individual technical entrepreneurs for purchase of land and construction of work shed for their proposed industry.
 
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.
 
6. PNB VIKAS UDYAMI
 
PNB VIKAS UDYAMI
Loans for acquiring ISO-9000 Certification
 
PURPOSE OF THE LOAN
For acquiring ISO-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 SSI 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).
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.
 
7. PNB SME SAHAYOG SCHEME
 
Financial 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
 
A 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 Artisans)
 
OBJECTIVE
 
  • To provide hassle free financial support to Artisans
  • To make credit delivery simple and easy
 
SECURITY
 
Secured by Hypothecation of stocks, receivables, machinery, other equipment, etc.
 
COLLATERAL SECURITY
 
No Collateral security and third guarantee required. Loan to be covered under Credit Guarantee Scheme of CGTMSE.
 
NATURE OF LIMIT
 
Term Loan & Cash Credit Limit
 
MARGIN
 
 Extent of Limit Margin
(i) Upto Rs. 2.00,000
Nil
 
VALIDITY
 
Card is valid for three years
 
Nature of limit
 
Term loan and working capital (both upto Rs. 2 lakh)
 
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 on financing in clusters of artisans and artisans who have joined to form Self Held Groups (SHGs).
  • All existing / new artisan borrowers of the bank enjoying credit facilities upto Rs. 2 lakh and having satisfactory dealings with the bank.
  • Beneficiaries of other Government sponsored loan schemes are not eligible.
 
 
 

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9. 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, 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. 20 lakh*
*Condition apply

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 Income Tax Return
Micro & Small Enterprises units as per simplified turnover method.
 
MARGIN
 A. For Micro & Small Enterprises (other than Trading)
               a- Cash Credit (Stocks)
 Extent of Limit Margin
(i) Upto Rs.2.00 lakh
Nil
(ii) Above Rs.2.00 lakh upto Rs. 5.00 lakh
15%
(ii) Above Rs 5.00 lakh
20%
 B. For Micro & Small Enterprises (Trading)
     Cash Credit (Stocks):                                            :30% - 40%
     keeping in view, nature of stocks, price fluctuation, shelf life etc.
 
SECURITY
 
Hypothecation of stock, receivable, machinery,equipment, etc.
 
COLLATERAL SECURITY (For Micro & Small Enterprises )
 
No Collateral Security & Third Party Guarantee for Loans upto Rs.100 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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