Pnb Nirmata

The Punjab National Bank (PNB) has launched the Pnb Nirmata Scheme for financing MSME manufacturing units. Under this scheme, any individuals / Partnership firm / Private Limited Company /Limited Liability Partnership/ Public Limited Company/ Co-operative Societies and trust registered under any cooperative societies engaged in manufacturing and are categorised as Micro, Small and Medium Enterprises are eligible to apply, we look at the “Pnb Nirmata” in detail.

Purpose of Loan

The purpose of the loan is given below: Working capital Loan

Working capital loan to meet the working capital requirements of the MSME manufacturing units against the cost of raw material, components, spares, stores, processing of raw materials, marketing of finished products, etc

Term Loan Term loans for acquisition of fixed assets for setting up new units and for expansion, modernisation and diversification of existing units.

Eligibility Criteria

Any individuals / Partnership firm / Private Limited Company /Limited Liability Partnership/ Public Limited Company/ Co-operative Societies and trust registered under any cooperative societies engaged in manufacturing and are categorised as Micro, Small and Medium Enterprises are eligible to apply for Pnb Nirmata.

Nature of Loan

The nature of the loan granted by the PNB are as follows:

Cash Credit
Term loan
Composite loan

Margin Contribution

The bank provides different rates of margins based on the type of loan (cash credit/term loan/composite loan), amount and end-use.

Nature of Facility	Margin
Working capital facilities Cash Credit (Hypothetical) Limits Up to Rs. 2 lakhs Above Rs. 2 lakhs and up to Rs. 5 lakhs Above Rs. 5 lakhs	NIL 20% 25%
Cash Credit (Pledge)	15%
Cash Credit (Book Debts) Up to Rs. 5 lakhs Above Rs. 5 lakhs	25% 30%
Bills for collection ABC limits covering RRs and MTRs of IBA approved Transporters Government supply bills Against existing unencumbered machinery	20% 10% 25%
Term loan For acquiring Plant and machinery Limits up to Rs. 2 lakhs Above Rs. 2 lakhs and up to Rs. 5 lakhs Above Rs. 5 lakhs	Nil 20% 25%
For the purchase of old equipment or machine, not older than 3 years.	25%
For deferred payment guarantees	25%

Rate of Interest

The rate of interest will be calculated as per the extant guidelines of the bank.

Security

The securities acquired by the bank for lending the loan amount are specified here: Primary Security: The mortgage or hypothetical of stocks and assignment of receivables not older than three months is needed. Collateral Security: The collateral security or third party guarantee is required as per the norms listed below:

In case the building or land has been financed and mortgaged as primary security, having the value equivalent to 133% of total exposure, no additional security is needed. If there is any due or shortfall in the security, additional collateral in the form of liquid security or insolvency proceedings will be required.
In case the building or land is not mortgaged with the bank, then the collateral security will be added by way of mortgage of immovable properties or third party guarantee.

Application Procedure

The applicant who wants to apply for the Pnb Nirmata has to visit the nearest PNB branch and collect the application form from the bank. Complete the application with the necessary details and attach the required documents. After filling the form, submit the same to the appropriate bank. The application form of “Pnb Nirmata” is reproduced below for reference.

Repayment

For term loan, it is fixed as 5-7 years depending upon the loan amount,
For working capital limits sanctioned for one year has to be renewed annually

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Frequently Asked Questions

Common questions about PNB Nirmata Scheme: MSME Manufacturing Financing.

The PNB Nirmata Scheme is a financing scheme launched by Punjab National Bank (PNB) for MSME manufacturing units. It provides working capital loans and term loans to eligible MSME units engaged in manufacturing activities.

Any individuals, partnership firms, private limited companies, limited liability partnerships, public limited companies, co-operative societies, and trusts registered under any cooperative societies engaged in manufacturing and categorized as Micro, Small and Medium Enterprises are eligible to apply for the PNB Nirmata Scheme.

The purpose of the loan under the PNB Nirmata Scheme is to provide working capital loans to meet the requirements of raw materials, components, spares, stores, processing of raw materials, and marketing of finished products. Additionally, term loans are offered for acquisition of fixed assets, setting up new units, and expansion, modernization, and diversification of existing units.

The different types of loans available under the PNB Nirmata Scheme are cash credit, term loan, and composite loan.

The margin contribution required varies based on the type of loan (cash credit/term loan/composite loan), amount, and end-use. The bank provides different rates of margins, ranging from NIL to 30%, depending on the loan type and amount.

The rate of interest for loans under the PNB Nirmata Scheme is calculated as per the extant guidelines of the bank.

For availing loans under the PNB Nirmata Scheme, the primary security required is the mortgage or hypothecation of stocks and assignment of receivables not older than three months. Additionally, collateral security or third-party guarantee may be required as per the bank's norms.

To apply for the PNB Nirmata Scheme, the applicant needs to visit the nearest PNB branch, collect the application form, fill it with the necessary details and required documents, and submit the completed form to the appropriate bank.

For term loans under the PNB Nirmata Scheme, the repayment tenure is fixed as 5-7 years, depending upon the loan amount.

Working capital limits sanctioned for one year under the PNB Nirmata Scheme need to be renewed annually.