Udyog PNB program: MSME alert! Eligibility, loan amount, tenure and more – financial assistance for your business; here is all you need to know

The Punjab National Bank (PNB) offers financial aid and support to businesses. If you are a PNB client and want financial assistance for your business, you can avail the benefits of the PNB Udyog scheme.

The Bank used its Twitter account to provide information and said, “PNB is here to help you financially for your business. Make your business a success with the help of PNB Udyog Yojana. “

See Zee Business Live TV Streaming below:

Here’s everything you need to know about the diagram:

Objective: To meet working capital requirements (including pre-shipment and post-shipment credit) and to acquire fixed assets such as land and factory buildings, plant and machinery by new businesses.

In the case of existing units, to expand the factory premises, renovate and modernize the existing factory in order to improve quality or reduce production costs, create additional infrastructure, such as the establishment research and development centers / testing laboratories, vehicle purchase (other than vehicles intended for personal use) which are necessary to meet the production and marketing needs of the unit, etc.

Eligibility: Individuals / Partnerships / Limited Liability Company (LLP) / Pvt. Ltd. Co. / Public Ltd. Co / Trust / Societies & Cooperative Societies (registered and incorporated under applicable law) and are eligible to be classified as MSME (s) as defined in the MSMED 2006 law.

MSME companies having a GST registration number (if applicable) and Udyog Aadhar number (desirable).

Type of facilities: Four types of facilities are provided, namely fund-based working capital, term loan (for capital creation / P&M), non-fund-based limit and composite loans.

Loan limit: Funding based on needs.

Margin: For stocks up to Rs 2.00 lakh there is no margin while for above Rs 2.00 lakh a margin of 25 percent has been kept. For book debt, the margin is 25 percent. For government supply bill collection invoices, the margin is 10 percent.

For installations and (new) machines up to Rs 2.00 lakh no margin is available, while for above Rs 2.00 lakh a margin of 25 percent has been set. For plants and (old) machines up to 3 years a margin of 25 percent is provided and for more than 3 years a margin of 30 percent is set.

For the deferred payment guarantee, a margin of 25% is set, for a non-funds based cash margin, a margin of 15% is available and for a new vehicle for business use, a margin of 15% is set.

Term of the loan : The repayment period will be a maximum of 7 years for the term loan (including the moratorium period). However, an extension of the repayment period beyond 7 years may be authorized by the next higher sanctioning authority depending on the merit of the proposal.

However, interest will be served during the moratorium period as it expires.

The working capital facility will be sanctioned for a period of one year and will be renewed annually.

Moratorium period: It is based on need. Maximum up to 12 months. However, the extension of the moratorium period may be authorized by the next higher sanctioning authority based on the merit of the proposal.

Primary security: Mortgage assets which are inventory, receivables, P&M, vehicles, etc. created from bank financing (present and future).

Collateral security: The advance will be covered by guarantees covering at least 30% of the exposure (FB + NFB). The extent of the cash margin (in case of non-fund-based limit) greater than 15% should be taken into account when calculating collateral coverage.

If the primary collateral is in the form of land and a building, the residual value greater than 135% of the O / s of the term loan will be treated as collateral collateral. When collateral is not available, the facility should be covered by credit guarantee schemes such as CGTMSE / CGSSI in accordance with Bank policy guidelines. The personal guarantee of promoters / directors / partners / trustees / company members / etc., as the case may be, will be obtained in accordance with the guidelines of the Bank’s policy.

Interest rate: Based on applicable ROI for MSME loans.

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