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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.

PNB-1017

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