• PNB Business Loan

    Punjab National Bank (PNB) offers business loans for various purposes. The loans are offered at attractive rates and for flexible loan repayment periods.

    Types of Corporate Loans offered by Punjab National Bank

    There are 9 different types of business loans which are offered by Punjab National Bank for corporates. These loans can be listed as follows:

    1) Rooftop PV Solar Power Projects

    2) Loan Against Future Lease Rentals

    3) Term Loans

    4) Working Capital Financing

    5) Finance for Project and Infrastructure

    6) Finance for Export

    7) Financing against future receivables

    8) Bill financing

    9) Short term loans

    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:

    1. Rooftop PV Solar Power Projects

    Punjab National Bank offers a customised scheme to help businesses in setting up solar power projects. This product has been designed to promote the aim of the Indian government to achieve the target of solar power.

    The groups targeted through this product: The groups targeted through the Rooftop PV Solar Power Project are as follows:

    • Partnership firms which include LLPs or Limited Liability Partnerships
    • Sole proprietorship firms
    • Trusts
    • Associations
    • Private Limited Companies
    • Limited Companies
    • Non-Banking Financial Companies or NBFCs
    • Registered Societies
    • Special Purpose Vehicles (SPVs)

    Margin: A minimum margin of 30% is required along with an upfront contribution

    Minimum Fixed Asset Coverage Ratio (FACR) in a year: 1.25

    Loan repayment period: Up to a maximum of 15 years

    Moratorium: 4 months from COD or 1 year after the first disbursement, whichever is earlier.

    Debt Service Reserve Account or DSRA: A minimum DSRA equal to at least 3 months principal and interest is required to be maintained after the date of commercial operations.

    2. 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:

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

    Loan amount and nature of loan: A property owner can avail a loan amount of 40% to 80% 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 usually between 10% p.a. to 18% p.a.

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

    • Assignment of the lease rental
    • 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.
    • 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.
    • Personal guarantee of the promoter directors will be required in the case of companies.

    Upfront Fee: The upfront fee is applicable in case of term loans and overdrafts on reducing DP basis. The upfront fee is 0.70% of the loan amount plus applicable GST.

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

    • Rs.270 for a loan amount of up to Rs.2 lakh plus applicable GST
    • Rs.450 for a loan amount of more than Rs.2 lakh plus applicable GST.

    3. 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.

    4. 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:

    • Aviation sector
    • Railways
    • Power sector which includes projects dealing with renewable sources such as wind, hydel, and solar power
    • Aviation sector
    • Telecommunication sector
    • Oil, gas, and other natural resource sectors
    • Real estate projects (both residential and commercial)
    • Manufacturing units such as steel, cement, and so on

    5. 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.

    6. Bill Financing

    Punjab National Bank (PNB) offers advances against inland bills such as purchase of bills, advance against bills for collection, and so on.

    7. 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).

    8. 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.

    9. 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).


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