PNB Business Loan

Details of the different Types of Corporate Loans Offered

The details of the different types of corporate loans which are offered by Punjab National Bank have been listed below:

Loan Against Future Lease Rentals

Punjab National Bank (PNB) introduced the Loan against Future Lease Rentals scheme for owners of properties who have their properties in urban, metro, semi-urban, and/or rural centres.

Eligibility Criteria: The eligibility criteria for the loans against future lease rentals are as follows: The property owner must be owning the property in an urban, metro, semi-urban, and/or rural centre and should have let out the property to one of the followings:

1. Reputed private hospitals and/or nursing homes
2. Reputed private schools and/or colleges (Preferably affiliated to or approved by a state board, AICTE, a university, or any other government body
3. Public sector undertakings, government, semi government, state government, banks, insurance companies, multinational companies, and financial institutions
4. Dealers, franchisees, distributors of a reputed corporate

Loan amount and nature of loan: A property owner can avail a loan based on the net present value of the future lease rentals receivable for the unexpired period of the lease. This amount will be based on the remaining period of the lease.

Rate of interest: The rate of interest on these loans is offered at the discretion of the bank.

Requirement of security: The requirement of security has been listed below:

1. Assignment of the lease rental
2. For loans with a repayment tenure of up to 5 years, the amount of the loan will not exceed the value of the property which is being mortgaged.
3. For loans with a repayment tenure of more than 5 years, the amount of the loan will not exceed 75% of the total valuation of the property which is being mortgaged.
4. Personal guarantee of the promoter directors will be required in the case of companies.

Upfront Fee:

Documentation Charges: The documentation charges for the loans against future lease rentals are as follows:

Repayment Period: Maximum repayment tenure of 144 months or total lease tenure taken into account for arriving at the loan amount whichever is earlier.

Working Capital Financing

Punjab National Bank (PNB) also offers the working capital financing for meeting short term fund requirement of companies. The working capital financing is offered to companies which are looking for funds to manage their day-to-day business operations using the fund offered through this loan product.

***Note: Know about Personal Loan and Calculate by using Personal Loan EMI Calculator

Project Finance and Infrastructure Finance

Punjab National Bank (PNB) offers funds for new projects in both infrastructure and non-infrastructure sectors. In addition to that, you can also avail a loan for the expansion, modernisation, and diversification of any ongoing project. Some of the major areas wherein you can avail a project finance and infrastructure finance are mentioned below:

1. Aviation sector
2. Railways
3. Power sector which includes projects dealing with renewable sources such as wind, hydel, and solar power
4. Aviation sector
5. Telecommunication sector
6. Oil, gas, and other natural resource sectors
7. Real estate projects (both residential and commercial)
8. Manufacturing units such as steel, cement, and so on

Term Loans

Punjab National Bank also offers term loans to support the capital expenditures which is required for setting up an industrial unit or a new business. It can also be used for the renovation or expansion.

Bill Financing

Punjab National Bank (PNB) offers advances against inland bills such as purchase of bills, advance against bills for collection, Railway Receipts (RRs), Motor Transport Receipts (MTRs), Govt. Supply Bills, third party DDs, cheques and so on.

Export Finance

Exporters can also get finance for pre-shipment and post-shipment in a number of fund-based and non-fund based credit options through Punjab National Bank (PNB).

Short Term Loans

Punjab National Bank (PNB) offers short term business loans for a period of up to 12 months to reputed PSUs corporate customers which helps them to meet the emergency expenses.

Financing against Future Receivables

A corporate or non-corporate customer can also avail a business loan against the assured future receivables through Punjab National Bank (PNB). The applicant needs to have assured future receivables such as Educational Institutions, BPOs/KPOs, etc. Similarly, other institutions can avail this loan facility to meet their business requirements. This loan scheme will also cover receivables from future toll collection or annuity receivables in case of BOT road projects.