Pnb Loan For Professionals

Punjab National Bank (PNB) offers professional loans for qualified professionals to expand the practice or to start a new business. The scheme aims to help self-employed individuals, firms, associations and joint ventures.

Objectives of the Loan

To provide financial assistance for professionals to purchase equipment for self-employment.
Provide loans with minimum risk and documentation
Encourage young, and professional entrepreneurs establish their firm or enterprise

Features of the Loan

The loan is a term loan or an overdraft for the service sector and manufacturing sector.
Offers to set up a new business or enhance their practice or take up self-employment, who has the relevant degree or certification
Applies for individuals already practising or those who wish to start a new practice.
The loan is available to individuals, private limited company, partnership, associations, limited company and limited liability partnership.
The finance is also provided for construction, purchase, alteration, addition, furnishing and renovation of the workplace.
The loan is made available to meet the working capital requirements for day to day operations in practice.

Collaterals

In case of an account covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSEs), there is no collateral security for loans up to Rs.10 lakh. The loan will be covered on merits under the Credit Guarantee Scheme.

In case of procuring loans under the Credit Guarantee Scheme above Rs.10 lakh and up to Rs.100 lakh, collateral or third-party guarantee is not required. However, there is a requirement of the personal guarantee of the partners in case of a limited liability partnership.

For those accounts not covered under the CGTMSE, collateral security and third-party guarantee are required for loans above Rs.10 lakh to Rs.20 lakh.

For loans exceeding Rs.20 lakh, there is a requirement of equitable mortgage of immovable property which is equal to 100% of the loan amount. If the land or building is financed by the bank, and the same is mortgaged as primary security, there is no need for collateral security. Additionally, the property should not be used for any other commercial purposes.

If the value of the land and building is less than 110% of the loan amount, there will be a requirement of collateral security to provide for the shortfall from 110%.

Eligible Qualifications

The loan is available for the following professional individuals having a degree/certification:

Media and Journalism
Engineering and Technical
Business Management
Animation
Law
Designing
Foreign Language
Fine Arts
Computer
CA/CS/ICWA
Certified Tax Return individuals/agencies

Note: The loan is available to qualified individuals, excluding medical professionals and traders.

Quantum of Loan

The minimum amount of loan is Rs.1 lakh, and the maximum is based on the project and profile of the applicant.

Tenure of the Loan

The maximum tenure of the loan is 7 years.

Duration for Repayment

The duration for loan repayment is six months. However, the duration can be increased to 18 months, depending on the size of the project.

Loan Requirements

For applicants other than individuals and associations, there is a minimum stake requirement of 75% equity held by qualified professionals.

For associations, 75% of the members should be qualified professionals. However, it can be reduced to 50% based on the merits of the case.

For self-employed professionals, the total deduction should not exceed 60% of the salary or income.

If there is a requirement for a license to initiate a business or practise a profession, the eligibility for advances will only be complete after the insurance of a valid license.

Documents Required

Detailed Project Report (DPR)
A copy of documents such as:
- Aadhaar Card
- Passport
- Voter's ID Card
- Driving License
- PAN Card
Qualification proof for highest professional degree
Bank statement of the previous 6 months
Latest ITR along with computation of income
Balance Sheet and Profit & Loss account for the last 2 years, authorised by CA Certified/Audited
Declaration Or Certified Copy of Partnership Deed
Copy of Memorandum & Articles of Association
Certified copy of the license for the record of the bank

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Frequently Asked Questions

Common questions about Professional Loans in India.

The PNB Loan for Professionals aims to provide financial assistance to qualified professionals to expand their practice or start a new business. It is designed to encourage self-employed individuals, firms, associations, and joint ventures in the service and manufacturing sectors.

The loan is available to individuals, private limited companies, partnerships, associations, limited companies, and limited liability partnerships engaged in various professions, such as media and journalism, engineering and technical fields, business management, animation, law, designing, foreign languages, fine arts, computer-related fields, and certified tax return individuals/agencies. However, it excludes medical professionals and traders.

For loans up to Rs. 10 lakh covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), no collateral security is required. For loans above Rs. 10 lakh and up to Rs. 100 lakh, collateral or third-party guarantee is not required, but personal guarantees of partners are necessary in case of a limited liability partnership. For loans exceeding Rs. 20 lakh, equitable mortgage of immovable property equal to 100% of the loan amount is required.

The minimum loan amount is Rs. 1 lakh, and the maximum loan amount is based on the project and profile of the applicant.

The maximum tenure of the PNB Loan for Professionals is 7 years.

The repayment duration for the PNB Loan for Professionals is six months, which can be extended up to 18 months, depending on the size of the project.

For applicants other than individuals and associations, a minimum of 75% equity must be held by qualified professionals. For associations, 75% of the members should be qualified professionals, which can be reduced to 50% based on the merits of the case.

For self-employed professionals, the total deduction should not exceed 60% of the salary or income.

The documents required include a Detailed Project Report (DPR), copies of identity proofs (Aadhaar Card, Passport, Voter's ID Card, Driving License, PAN Card), qualification proof, bank statements, Income Tax Returns, Balance Sheets and Profit & Loss accounts, partnership deeds, Memorandum & Articles of Association, and licenses (if applicable).

If a license is required to initiate a business or practice a profession, the eligibility for advances will only be complete after the issuance of a valid license.