INTRODUCTION

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HISTORY

Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The founding board was drawn from different parts of India professing different faiths and a varied back-ground with, however, the common objective of providing country with a truly national bank which would further the economic interest of the country. PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal,[3] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894. Today, ironically the PNB Website is distorting history by claiming Lala Lajpat Rai to be the founding father, surpassing Rai Mul Raj and Dyal Singh Majithia.

PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.)

PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi, Shri Jawahar Lal Nehru, Shri Lal Bahadur Shastri, Shrimati Indira Gandhi, as well as the account of the famous Jalianwala Bagh Committee.

Timeline

1895: PNB commenced its operations in Lahore. 1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi Circle. 1947: At the Partition of India and the commencement of Pakistani independence, PNB lost its

premises in Lahore, but continued to operate in Pakistan. PNB had already shifted its registered office from Lahore to Delhi in June 1947 — even before the announcement of the Partition.

1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi Ltd.

1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in

Pakistan of Indian banks. PNB also had one or more branches in East Pakistan (Bangladesh). 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial

banks, on 19 July 1969. 1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of

India after the branch was involved in a fraud scandal. 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition

added Hindustan's 142 branches to PNB's network. 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. At the time of

the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares.

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PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai.PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two

offices, one in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham.

2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway, and a second branch in Hong

Kong, this in Kowloon. 2010: PNB received permission to upgrade its representative office in the Dubai International

Financial Centre to a branch.

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HERITAGE Fired by the spirit of nationalism and founded on the idea that Indians should have a national bank of their own, Punjab National Bank Ltd was the result of the efforts of far-sighted visionaries and patriots, among whom were persons like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh Majithia. Incorporated under the Act VI of 1882, Indian Companies Act, the Bank commenced operations on April 12, 1895 from Lahore, with an authorized total capital of Rs 2 lac and working capital of Rs 20,000. Prophetically, the Bank chose "Stability" as its telegraphic address, as the future course of events were to prove - the Bank withstood various financial crises including the trauma in the form of partition of India when the Bank had to close 92 offices (33%) in west Pakistan which constituted 40% of its deposits and 15 of its staff fell victims to the frenzy. The registered office was shifted to Delhi and the Bank honored all the deposit claims of the refugees even on the basis of whatever little evidence they could produce. Subsequently, the Bank registered impressive performance and grew from strength to strength.

A pioneer throughout, the Bank distinguished itself by appointing auditors in 1895 long before it was mandatory; introduced the "teller" system in 1944 (another first ); established profit sharing bonus, provident fund and voluntary outside audit well before they formed keystones of good management.

Nationalization came in 1969 which unleashed a new chapter in the long history of the Bank. Keeping with the economic ideology of catalyzing development and amelioration of poverty by funding various self-employment schemes, PNB expanded its presence rapidly in unbanked areas. The Bank donned the role of a facilitator in providing the vital input of credit and consistently exceeded the national goals in respect of priority sector lending. With its large presence throughout the country and with a view to strengthening the rural credit delivery system, the Bank sponsored Regional Rural Banks (RRBs).

PNB has established itself firmly as one of the premier banking institutions in the country with a long tradition of sound and prudent banking. The bank's growth has been aided by take-over/merger of 7 private sector banks during different periods in its history. The first ever and the only merger of a nationalized bank with PNB was in 1993, viz., New Bank of India.

By late 1980s when the first whiff of liberalization came about, the Bank initiated strategic moves towards diversification; and in 2002, 20% of government ownership was disinvested through a very successful IPO to the public. In 2003, the erstwhile Nedungadi Bank Ltd (e-NBL), a Kerala based private bank was amalgamated with Punjab National Bank. This was the seventh merger in PNB’s history of more than 115 years. PNB’s management team has been quite successful in managing the mergers and ensuring the integration process in a smooth and effective manner. It may be added that no other bank in the nationalized bank group has a track-record of so many mergers. This has improved the franchise value of the Bank, particularly, in the relatively underrepresented Kerala region. In order to meet future capital requirements on account of implementation of Basel II norms, in March 2005, the Bank came out with Follow-on Public Offer (FPO) through the book building process, reducing the shareholding of Govt. of India to 57.8%.

Punjab National Bank with more than 5000 domestic offices including Extension Counters has the largest network amongst the nationalized banks i.e. next only to SBI. The bank has a strong franchise value and provides a host of financial products and services, both to the retail customer and corporate business. It has continued to fulfill its social responsibilities and made significant progress in adoption of technology, keeping with its objective of transforming itself into a techno-savvy Bank.

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During 2008-09, the Bank achieved the landmark of becoming the largest Nationalized Bank to bring ALL BRANCHES/EXTENSION COUNTERS into Core Banking Solution (CBS). The strong franchise enjoyed by the Bank, combined with its technological capabilities provides the Bank competitive advantages.

The Bank also continues to discharge its social obligations and addresses environmental concerns with added vigor, which include free medical camps, distribute artificial limbs, tree plantation and blood donation camps, besides donations to Hospitals, Schools etc. The Bank supports various societies, charitable institutions and NGO /organizations working for the benefit of downtrodden, weaker sections of society, orphans, underprivileged, spastics, handicapped, mentally retarded children, women in shelter homes, etc. The Bank also contributes for fighting diseases like diabetes, tuberculosis, AIDS, leprosy etc. Donations are also extended for purchase of water coolers, ambulances and building infrastructure facilities at hospitals/schools.

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ORGANIZATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervise 65 Circle Offices under which the branches function. The delegation of powers is decentralized upto the branch level to facilitate quick decision making. The bank is the second largest government-owned commercial bank in India with about 5017 branches across 764 cities. It serves over 37 million customers. 

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DEPARTMENTS OF THE ORGANIZATION

The bank has following organization:

1. Finance

2. Personal Administration

3. Human Source

4. Sales & Marketing

5. Retailing

6. Treasury Management

7. Information Technology

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PRODUCT PROFILE OF THE ORGANIZATION

1. Saving Account · PNB Prudent Sweep

· Total Freedom Salary Account· PNB Vidyarthi Salary Account· PNB Mitra SF Account

2. Current Accounts· Smart Romer· PNB Vaibhav· PNB Gaurav

3. Fixed Deposit Accounts· Spectrum fixed deposit scheme· Anupam account· Multi benefit deposit scheme· Special fixed deposit scheme· Recurring deposit scheme· PNB swecha jama yojna/flexi rd

4. Credit schemes· Housing loan· Car finanace· Personal loan· Professional loan· Educational loan scheme· Loan against mortgage of property· PNB financial basket scheme· Personal loan scheme for pensioners· Privilege card scheme· Other credit scheme

5. Social Banking· Farmers· Krishi card· Agriculture credit scheme· PNB farmers welfare trust

6. Women· Scheme for house wife and other women· Mahila udhyam nidhi scheme

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CERTIFICATION AND AWARDS

Awards & Achievements of Punjab National Bank in Recent Times

PNB receives Best Bank Award-2011

Shri K.R. Kamath, CMD, PNB receiving  Best Bank Award-2011 from Dr. C.Rangarajan, Chairman Prime Minister’s Economic Advisory Council at Mumbai

PNB Bags Most Productive Public Sector Bank Award

Shri K.R. Kamath, CMD, PNB receiving FIBAC 2011 'Most Productive Public Sector Bank award' from Sri Prithiviraj Chavan, Chief Minister of Maharashtra. Mr. Nair, Chairman of Banks & FIs Committee of FICCI  and Mrs. Sushma Bali, GM, PNB are also seen.

PNB Bags MSME National Awards 

Smt. Usha Ananthasubramanian, ED, PNB receiving the MSME National Award from Shri Virbhadra Singh, Hon'ble Minister of Micro, Small & Medium Enterprises, GOI at New Delhi.

PNB Awarded Golden Peacock HR Excellence Award-2011

Shri Rakesh Sethi and Smt. Usha Ananthasubramanian, EDs PNB receiving the Golden Peacock  HR Excellence Award-2011 from Justice M.N.Venkatchaliah, Former Justice of India. Also seen in the picture are  Smt. Sushma Bali, General Manager-HRD and other officials at a function organized by IOD

PNB Awarded "IT for Internal Effectiveness" Awards

Shri Ajay Misra Chief Information Technology Officer receiving Award on “IT for Internal Effectiveness” from Shri Anand Sinha Deputy Governor Reserve Bank of India & Chairman IDRBT in a function held at IDRBT Hyderabad on 04.08.2011.

PNB Awarded Rajbhasha AwardsShri K.R. Kamath, Chairman & Managing Director, PNB receiving RBI Rajbhasha Awards from Dr. D.Subbarao,

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Governor, RBI. Other dignitaries present on the dias are RBI Dy. Governors Dr. K.C.Chakraborthy and Dr. Subir Gokarn.

PNB adjudged Best Managed Bank by SCOPE

Hon’ble President of India Smt. Pratibha Devisingh Patil giving SCOPE Best Managed Bank Gold Trophy Award to Sh. K.R. Kamath, CMD- PNB.  Seen in picture are  Sh. Praful Patel- Union Minister for Heavy Industries, Sh. A Sai Prathap, Minister of State & Sh. M.V. Tanksale, ED- PNB.

Wind Power India 2011 AwardsWon Second Prize under the category of "Best Wind Power Project Financier" 2011 by World Institute of Sustainable Energy.

PNB Awarded SKOCH Challenger   Award 2011   on Financial Inclusion

Punjab National Bank declared winner of "SKOCH Challenger Award on Financial Inclusion".  Sh. M.V. Tanksale and Shri Rakesh Sethi, EDs, PNB receiving award from Dr. C Rangarajan, Chairman of the Prime Minister's Economic Advisory Council, at a function held at New Delhi.

PNB Awarded Best Technology Bank 2010

Punjab National Bank declared winner of "Best Technology Bank 2010".  Sh. M.V. Tanksale, ED, PNB and  Sh. Ajay Misra, GM, PNB receiving award from Hon’ble   Ex-President of India Sh. A.P.J Abdul Kalam at the Banking Technology Conference held at Mumbai.

PNB AWARDED GOLDEN PEACOCK AWARD FOR TRAININGPRESS RELEASE

PNB declared winner of the Golden Peacock Awards for Training. Smt. Sushma Bali, GM and Sh. J.P. Kapoor, DGM, PNB receiving award from Hon'ble Sh. K Sankaranarayanan, Governor of Maharashtra and Sh. P.N. Bhagwati Ex-Chief Justice of India.

PNB AWARDED NIRYAT BANDHU BRONZE TROPHY

PRESS RELEASE Hindi

Sh. K.R.Kamath, CMD, PNB receiving Niryat Bandhu Award from Hon’ble Sh. Jyotiraditya Scindia, Minister of State for Commerce and Industry. Seen in the picture

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PRESS RELEASE English is Sh. S.K.Dubey, GM, PNB.

PNB Received Excellent Performance in Lending Under PMEGP Scheme award SME PRESS RELEASE HindiMSME PRESS RELEASE

Sh. Nagesh Pydah, Executive Director, PNB receiving 'excellent performance in lending under PMEGP scheme' award from Sh. Dinsha Patel, MoS (Independent Charge) and Sh. Dinesh Rai, Secretary, Ministry of Micro, Small & Medium Enterprises.

K,R.Kamath, CMD, PNB is receiving the Best Bank Award

at Hyderabad from Shri D. Subbarao, Governor, RBI . Dr. K.C. Chakrabarty, Dy. Governor, RBI, Mr. Samba Murthy, Director, IDRBT, Mr. S Ganesh Kumar, CGM, IDRBT and Mr. Ajay Misra, GM, PNB are also seen in the photograph.

Outlook Money Award 2010 Outlook Money Award for the year 2010 for "Best Home Loan Provider"

Outlook Money Award 2010 Outlook Money Award for the year 2010 for "Best Education Loan Provider"

2nd prize of Indira Gandhi Rajbhasha Shield by Dept. of Indian Official Language, Ministry of Home Affairs, GOI

for promoting Hindi for the year 2008-09.

Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance in 2009

By Standing Conference of Public Enterprises.

5th Social and Corporate Governance Award Under the Category of "Best Corporate Social Responsibility Practice"

By Bombay Stock Exchange for 2010

Skoch Awards 2010 for "Computerisation of RRBs"

By Skoch for 2010

Global HR Excellance Award 2010 for the outstanding Contribution to the cause of Education

World HRD Congress

Asia Best Employer Brand Award" for Excellence in Training

By World HRD Congress for 2010

Award for Brand Excellance" under Banking & Financial Services

By CMO Asia for 2010

"CSR Excellence Award 2010" By ASSOCHAM

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Skoch Challenge Award 2010For Livelihood Linkage of the milk producers in Bulandshahr District, Uttar Pradesh

Best use of Technology for Financial Inclusion for 2009-10.

By IDRBT.

Best Employer Brand Award Regional Round Award Winners-Indore

By Employer Branding Institute, India

Golden Peacock Award for Excellence in Corporate Governance

By Institute of Directors for 2009.

India Pride Awards for excellence in PSUBy Dainik Bhaskar in association with Daily News and Analysis for 2009.

Dun & Bradstreet Award for “ Priority Sector Lending including Financial Inclusion.

By Dun & Bradstreet for 2009.

National Award for Excellence in Lending for Institutional Finance in Propagating KVI Programmes in NATIONAL LEVEL

By Khadi & Village Industry Commission, Ministry of Micro, Small & Medium Enterprises, Govt. of India, (Interest Subsidy Eligibility Certificate Scheme) for 2009.

National Award for Excellence in Lending for Institutional Finance for Propagating KVI Programs in CENTRAL ZONE

By Khadi & Village Industry Commission, Ministry of Micro, Small & Medium Enterprises, Govt. of India(Prime Minister Employment Generation Program) for 2009.

National Award for Excellence in Lending for Institutional Finance in Propagating KVI Programs in NORTH ZONE

By Khadi & Village Industry Commission, Ministry of Micro, Small & Medium Enterprises, Govt. of India(Interest Subsidy Eligibility Certificate Scheme) for 2009.

National Award for Excellence in Lending for Institutional Finance in Propagating KVI Programs in CENTRAL ZONE

By Khadi & Village Industry Commission, Ministry of Micro, Small & Medium Enterprises, Govt. of India(Interest Subsidy Eligibility Certificate Scheme) for 2009.

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COMPANY POLICY

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QUALITY POLICY

To effectively meet customer’s requirements and endeavor to achieve total customer satisfaction.

To gain consistent faith and confidence of customers and potential customers regarding the quality of services rendered.

To pursue excellence through continuous improvement in all areas and to distinguish ourselves by the quality of our services.

To achieve operational efficiency by attaining better productivity and profitability.

To work and act in such manner that all services rendered in due course of banking lead to excellence and improved creditability and image of the bank.

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Credit Philosophy & Policy with regards to Punjab National Bank

An ideal advance is the one given to a reliable customer for an approval purpose with adequate experience, safe in knowledge that the money will be used to advantage and repayment will be made within a reasonable period from trade receipts or known maturities due on or about given dates.Credit philosophy – “To achieve credit expansion required for sustaining the profitability of the bank and emphasis on quality assets, profitable relationships and prudent growth.”CREDIT POLICYBank follows following broad policy imperatives:-· Reduction in dependence upon short term corporate loans, especially unsecured exposures.· Aiming to achieve more sanctions at levels closer to the customer.· Changing the mix of the portfolio in favour of better diffused and higher yielding credit.· Building competencies in credit management through training & promotion of self directed learning.

Objectives of credit policy:

1. A balanced growth of credit portfolio, which does not compromise safety.2. Adoption of a forward looking and market responsive approach for moving into profitable new areas on lending which emerge, within the pre determined exposure ceilings.3. Sound risk management practices to identify measure, monitor and control risks.4. Maximize interest yields from credit portfolio through a judicious management of varying spreads of loan assets based upon their size, credit rating and tenure.5. Leverage on strong relationships with existing long-standing clients to source a bulk of new business by addressing their requirements comprehensively.6. Ensure due compliance of various regulatory norms including CAR, income recognition and asset classification7. Accomplish balanced development of credit to various sectors and geographical regions.8. Achieve growth of credit to priority sectors / subsectors and continue to surpass the targets stipulated by reserve bank of India.9. Using of pricing as a tool of competitive advantage ensuring however that earnings are protected.10.Develop and maintain enhanced competencies in credit management at all levels through a combination of training initiatives, promotion of self directed learning and dissemination of best practices.

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ABOUT THE TOPIC

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Introduction to Credit Facilities

Credit The word "Credit" is derived from the Latin word Credo or Krado meaning I believe. It is usually defined as one's ability to buy to a promise to pay. From the Banker's point of view Credit is the confidence of the lender on the ability and willingness of the borrower to repay the debt as per schedule of repayment.

A bank provides loan to a company, with a fixed maturity and often featuring amortization of principal. If this loan is in the form of a line of credit, the funds are drawn down shortly after the agreement is signed. Otherwise, the borrower usually uses the funds from the loan soon after they become available. Bank term loans are very a common kind of lending.

In other words, a loan that an individual or a business owner gets Atom a bank is called Bank Loan

Types of Credit: Credit may be classified on Various Basis. These are • FUNDING • TERM • SECURITY • SECTORAL • CLASSIFICATION STATUS

Commercial Banks make credit in different forms. All types of credit facilities may broadly be classified into two groups on the basis of Funding. 1. Funded Credit 2. Non Funded Credit

Funded Credit: Any type of credit facility which involves direct outflow of Bank's fund on account of borrower is termed as funded credit facility. Funded credit facilities may be classified into four major types as below : • Loans • Cash Credit • Overdraft • Bill Purchased/Discount

1. loans

Loans are advances for fixed amounts repayable on demand or in installment. They are normally made in lump sums and interest is paid on the entire amount. The borrower cannot draw funds beyond the amount sanctioned. A key function of the Bank is deploying funds for income-yielding assets. A major part of Bank’s assets are the loans and advances portfolio and investments in approved securities. Loans & Advances refer to long-term and short-term credit facilities to various types of borrowers and non-fund facilities like Bank Guarantees, Letters of Credit, Letters of Solvency etc. Bill facilities represent structured commitments which are negotiable claims having a market by way of negotiable

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instruments. Thus, Banks extend credit facilities by way of fund-based long-term and short-term loans and advances as also by way of non-fund facilities.

Car Finance Two wheeler Finance Personal loan Educational loan Housing Finance

2) Cash Credit (CC) a) Cash Credit Hypothecation (CC Hypo) Under this agreement borrower can borrow any time with in the agreed limit for certain period to meet their working capital need. Cash credit allowed against hypothecation of goods. b) Cash Credit Pledge (CC Pl) Under this agreement borrower can borrow any time with in the agreed limit for certain period to meet their working capital need. This type of facility is always provided against Pledge of goods.

3) Over Draft (OD) Basically this is an agreement between banker and his customer by which the later is allowed to withdraw over and above his credit balance in his current account. Overdraft Facility may be allowed generally on the following ways: • Overdraft against Salary • Overdraft against Guarantee • Overdraft against term deposit as FDR/DPS etc • Overdraft against Bill Receivable (Work Order) • Overdraft against Stock/Raw Materials

4. LIM (Loan against Imported Merchandise) Loan against the security of merchandise imported through the bank may be allowed on pledge of goods, retaining margin 'prescribed on their landed cost, depending of their categories and credit restrictions imposed by the Bangladesh Bank. Branches obtain a letter of undertaking and indemnity from the parties, before getting the goods cleared through LIM account. LIM may be created in two ways : i)    LIM on importer's request ii)    Forced LIM. LIM is post shipment import finance.

5. Packing CreditThis type of credit is sanctioned for the transitional period from dispatch of the goods till negotiation of the export documents. The drawings under Export cash credit (Hypothecation/Pledge) limit are generally adjusted by drawing in packing credit limit which is, in turn, liquidated by negotiation of export documents. It is pre-shipment export finance.

6. Bill Discounted/ Bill Purchaseda) Bill Discounted Bank allows credit to the clients by discounting Usance bills (Bill of Exchange) which matured after a fixed tenor. It may be clean or documentary. b) Bill Purchased Bank allows credit to the clients by Purchasing Demand bills (Bill of Exchange) which the bank collects immediately. It may be clean or documentary.

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7. OTHERS Other Important funded credit facilities are : • Advance against hypothecation of Vehicles ( Transport Loan) • House Building Loan • Consumer Loan • Agriculture Loan -Farming -Non Farming • Weaving Credit • Micro Credit • Consortium Loan • Syndicate Loan • Lease Financing • Hire Purchase • Import Financing - Loan Against Imported Merchandise (LIM) - Payment Against Document (PAD) • Export Financing -Packing Credit (PC) -Trust Receipt (TR)

Consortium Financing:A grouping of a number of companies in order to promote a common purpose, e.g. a consortium bank can be set up by three or four other banks for the purpose of joint financing of a project which is considered too big for the resources of any individual bank/institution. For such advances, financial intuitions appoint a leader of the consortium who takes the loan account.

Advantages: • spreading and sharing of risks • making use of collective wisdom and expertise• providing better service and • taking care of the units complete financial requirements

Syndicated Loan:  Syndicated loan means joint financing by a group of banks or financial institutions to a borrower against common security. This is done basically to spread the risk. One bank in the syndicate usually acts as a lead bank for the other institutions. Lead bank co-ordinates the activities at various stages of handling the deal. i,e. appraisal, sanction, documentation, sharing of security, disbursement, inspection, follow-up, recovery etc. The borrower will create, inter alia, in fixed assets and shall execute necessary charge documents in favour of respective banks separately or collectively as are called upon ranking pari passu charge on the securities

Lease Financing:The Leasing is defined as contract between a leasing company (called as "the Lessor) of the one part and the user of the equipment-asset (called "the Lesse") of the other part whereby the lessee/loanee agrees to pay the lessor an agreed amount of money as rentals over a specified/obligatory period of time in consideration for the use of capital equipment owned by the lessor. The lessor retains ownership if the equipment and seeks to recover the capital cost of the equipment puls a profit margin out of the lease rentals payable during the period of the lease. Under this system of finance, financing company of bank initially purchases the assets and then leases to the user for a specified time in exchange of payments of rent on monthly or quarterly basis. There are two types of lease recognized under this system of investment. Such as (1) Operational Lease; and (2) Lease Purchase.

NON FUNDING:  Any type of credit facility where there is no involvement of direct outflow of Bank's fund on account of borrower is termed as Non funded credit facility. Though this type of Credit facilities are primarily non-funded by nature but at time it may turn into funded facilities. As such liabilities against these types of credit facilities are termed as contingent liability. The major Non Funding Credits are • Letter of Guarantee • Letter of Credit •Performance Bond • Acceptance On the basis of term Credits are Classified as: • Short Term • Mid Term • Long Term Short Term : Upto 1 year Mid Term : Upto 5 Years Long Term : More than 5 Years

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Small and Medium Enterprises (SME):The definition of SME varies from one country to another and from one time to another in the same country depending upon the pattern and stage of development, Government policy and administrative set up of the particular country. But according to prudential regulations for small enterprises financing- Small Enterprise means an entity, ideally not a public limited company, does not employ more than 25 persons (if it is service concern) and 25 persons (if it is a trading concern) and 50 persons (if it is a manufacturing concern) and also fulfills the following criteria :

a) A service concern with total assets at cost excluding land and building from Tk. 50,000 to Tk. 50 lac.

b) A trading concern with total assets at cost excluding land and building from Tk. 50,000 to Tk. 50 lac.

c) A manufacturing concern with total assets at cost excluding land and building from Tk. 50,000 to Tk. 1.50 crore.

Medium Enterprise:  Medium enterprise means that enterprise which is ideally not any public limited company and fulfills the following criteria:

a) Service Concern: In the case total fixed assets excluding land and building amount to BDT 50 Lac to 10 crore and/of working manpower does not exceed 50 persons.

b) Trading Concern: In the case total fixed assets excluding land and building amount to BDT 50 Lac to 10 crore and/of working manpower does not exceed 50 persons.

c) Manufacturing Concern: In the case total fixed assets excluding land and building amount to BDT 1.50 crore to 20 crore and/of working manpower does not exceed 150 persons.

On the basis of Sector Credits are Classified as: 1. Public2. Private 3. Commercial4. Industrial5.Transport 6. Agriculture7. Micro Credit 8. Housing

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CAR FINANCE

Car loan trend for 2011:

Car loan market was slow last month due to hike in car loan rates and hike in petrol prices. With October being festive month, almost all Banks believe this as best month for car sales hence a good month for car loan banks. Rates have been in range of 11-12% where as some special schemes will be there this month. Some Car companies come out with rates as low as 8-9% but that rate cut is due to discount offered by that car brand to the bank which a customer can have otherwise also. So when you go to buy a car , negotiate for discounts from dealer and compare banks for emi to get the best deal. SBI and HDFC Bank are leader in this segment followed by ICICI bank. Two new cars were launched this month that is Honda brio and Mahindra XUV 500.

Car loan requires less paperwork than a home loan. In fact it is possible to get a car loan within a week! It is because the bank does not have to verify any asset as in the case of home loans.

Car loan application process: Enquiry with a lender: Firstly you need to get in touch lenders and get them to make loan

offers to you. Then negotiate with them to get the best car loan interest rate. Check if there are any special offers too. Then all you need to do is select the best bank (lender) by comparing the information you have collected to choose the best deal for you.

Documents Collection: After your lender selection, their direct selling agent will visit you to collect documents supporting proof of income, residence proof, and identity. You may be have to give copies of IT returns, salary slips, bank statements, passport, driving license, and other relevant documents as well. (Please note that these requirements vary across lenders.)

Field Investigation Agency Representative Visit: After submitting the documents, a field investigator visits your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is important that you are present during this visit to clarify any question that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up - thus forcing the lender to reject your loan application.

Loan approved: After the lender is satisfied with the authenticity of your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).

Above mentioned steps are a gist of the entire process but it should be borne in mind that these can vary from individual to individual and lender to lender

Eligibility:  Individuals as well as Business Concerns (Corporate or non-corporate).Minimum net monthly salary / pension / income – 20000/-. Income of spouse /Parent can be added.  

Amount of Loan:

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  For Individuals / Proprietorship Concerns: 25 times of the monthly net salary OR Rs.25 lacs (for one or more vehicles), whichever is lower. Income of parent(s) / spouse can be taken into account for determining loan amount. In such cases, the parent(s)/ spouse shall stand as additional guarantor.

For Business Concerns (Corporate or non-corporate): No ceiling on loan amount (for one or more vehicles).  Margin: 

For New Vehicles: 15% For Old Vehicles: 30% Under Tie-up Arrangement : 10%

  Security:  The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank.  Guarantee / Collateral Security  i) Third party guarantee / collateral security is waived in following cases:

Permanent Employees of Central Govt. /State Govt. /PSUs/ MNCs/ Listed Companies at NSE/ BSE whose Shares are actively traded and quoted above par.

For other than salaried class borrowers where ex – showroom cost of the car is exceeding Rs.6 lakh.

ii) However the Guarantee of Parent(s) / Spouse will be taken in case their income has been considered for determining loan amount

  Repayment: 

For New Vehicle: The loan amount together with interest is to be repaid maximum in 84 Equated Monthly Installments (EMIs).

For Old Vehicle: The loan amount together with interest is to be repaid maximum in 60 Equated Monthly Instalments (EMIs)

  Upfront Fee & Documentation Charges: 

1. @ 1% of the loan amount, with a maximum of Rs.6,000/- (exclusive of service tax & education cess)

  Disbursement: 

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The intending borrower will be required to settle the transaction for purchase of vehicle needed by him/her with the seller and will be required to deposit the difference of the cost of the vehicle to amount of loan, and thereafter, the advance will be allowed to him/her from the bank by paying the entire price of the vehicle to the seller directly on behalf of the

Interest Rate: 11.5%-12%

Two wheeler Finance

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The surging growth of the two wheeler industry in India has been influencing several new entrants to start manufacturing newer version of automobiles. In the last fiscal, the two wheeler industry in the country has seen a remarkable double digit growth against the previous year. A total of 5, 56,000 units of the automobiles were produced in India in the last financial year. Leading two wheeler manufacturers like Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor are continuously innovating and coming up with new two wheelers to rope in the increasing number of potential consumers in India. The annual sale of these various companies has also increased due to the three wheeler loans offered by numerous financial institutions and banking organizations.

By availing a two wheeler loan, many people in India have been able to get away with the hurdle of huge amount of one time monetary investment. If you are taking the auto loan, then in most of the cases you may have to give small down payment. However in some of the cases the customers need not make any down payments at all.

Repayment is done mainly through equated monthly installments. Most of the public sector undertaking (PSU) banks in India charge interest of about 12% per annum. Majority of the PSU banks offer an amount of INR 50,000 to INR 1, 50,000 as loans for a two wheeler.

There are some criteria based upon which the auto loans for two wheeler are sanctioned. The individuals seeking loans should have annual gross income of about INR 50,000 or more. The individual can be a businessman, professional or car is job holder. Loans are provided for both new vehicles or for used two wheelers that are up to 3 year old. If you are a transport operator then you have to down-pay minimum margin money of about 15 % of the invoice value, tax amount and premium of insurance for buying a brand new three wheeler. For a used one, you have to pay minimum margin money of about 25%. Requirement of guarantee is not mandatory, however in some of the cases you may be asked to deposit any collateral security. Repayment is usually done within 60 months in equated monthly installments. The interest rates may be higher in the private banks and private financial institutions. One thing should be noted that all such terms and conditions may vary from one bank to another, one financial institution to another.

Leading banks in the public and private sector are providing two wheeler loans, right form mopeds to motorbikes. These loans are available at attractive rates and best prices to attract new customers. Quite a few banks are offering online loan application for the ease of prospective clients. Private sector banks are ahead of their public sector counterparts in terms of efficiency of application and processing of loans. On the spot loan offers are given by various banks and other flexible schemes to suit the needs and pockets of customers.

Maximum Loan offered by Banks for Two Wheeler Loans:

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Loans are provided by banks from as low as Rs. 5000 to Rs. 150000. These loans can be paid in easy installments. The installment period can range anywhere from six months to three years, depending on the finance option chosen by the customer. In case of new vehicles, banks generally finance up to a maximum of 90% of the cost of the vehicle.In case of old/second hand vehicles, banks finance up to a maximum of 85% of the value of the vehicle. Repayment is done by Equated Monthly Installments or EMI.

Interest Charged by Bank on Two Wheeler Loans: Although Public sector banks are offering lower interest rate than their private counterparts but they are lagging behind due to poor quality of service. Interest rates depend on the two wheeler model, loan tenure. Interest is generally calculated on a monthly reducing balance.

Process Of Two Wheeler Loans Application:

Customers can contact the bank representative and apply for an auto loans. They can also fill online forms. There is no processing fee for new cars in most banks/finance companies. However, some companies do charge a minimal processing fee for used two wheelers.

Eligibility for Two Wheeler Loan by Punjab National Bank:

1. Individuals in service with minimum net monthly salary of Rs. 10000/-

2. Students, aged 18 years and above, with salaried parent as co-borrower;

3.  Business concerns (Corporate or non-corporate).

4. Income of spouse can be added.

  Purpose:

For purchase of new two wheelers viz. Scooter(s), Motor cycle(s), Moped(s).

  Amount of Loan: 

For Scooters / Motorcycles - Maximum Rs. 1.00 lac

For Mopeds – Maximum Rs. 10000/-

Margin: 

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Individuals - 10% (Salary through bank/check off facility)

Business Concerns - 25%

  Security:

The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank.

Loan upto Rs. 25,000- No Guarantee Loan above Rs. 25,000- Suitable Guarantee acceptable to bank.

  Repayment: 

For scooter and Motorcycle: Maximum 60 EMIs. For Scooterrete : Maximum 30 EMIs. For Moped: Maximum 24 EMIs.

  Upfront Fee & Documentation Charges: 

Upfront Fee: Rs.275/ + Service tax + Education cess.  Documentation Charges: Rs.275/ + Service tax + Education cess All other terms & conditions of the scheme as applicable.

PERSONAL LOAN

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Personal loan trend in 2011:

Personal loan rates has been stable in last few months despite rate increase measures by Rbi.In last six to seven months there has been. 5% increase in a rate which is much lower in response to Rbi directives to increase rates. Hdfc Bank is the leading player in the market, followed by Fullerton and Axis Bank. Banks like Citibank and Standard Chartered are active and are expanding there network to reach 100 crs disbursals per month.State Bank and other public sector banks are not very aggressive in this segment as they ideology believe this unsecured business as risky portfolio. In last two months Banks have become active to source self employed businessmen for personal loans where as most of them were only doing these loans for salaried. With the festive season this month, Banks will come out with festive schemes and will believe customers will spend more and hence opt in for more personal loans. We at Deal4loans.com advice people not to take Personal loans for spend as these loans are expensive and they come in range of 14.5 % - 25%.

What is a Personal loan?

Personal Loan is an unsecured loan for personal use which doesn’t require any security or collateral and can be availed for any purpose, be it a wedding expenditure, a holiday or purchasing consumer durables, the personal loan is very handy & caters to all your needs. The amount of loan can be ranged from Rs. 50,000 – Rs. 20 lakh & the tenure for repaying the loan varies from 1 to 5 years. More Information about personal loan section click articles about personal loan and Personal loan must read.

Benefits of Personal loan

1. A Loan without security : A Personal Loan is not a secured loan (bank doesn’t ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.

2. Simple Documentation: A Personal Loan can be accessed with minimal paperwork or documentation and does not take much timeto procure as against a secured loan.

3. No specification about the end use of the loan amount : You are not required to disclose the end use of the money borrowed, Banks are concerned about the fact that whether the borrower is able to pay back the loan with interest before the due date or not and they confirm this by checking the income, employment or business and other factor of borrower

4. Big Loan amount : Personal Loan is a means to fulfill bigger loan requirement, you can take a loan ranging from Rs. 50,000 to Rs. 20 lakh.

Important pointers in personal loan:

Increase your loan eligibility : You can increase your eligibility of the loan amount by clubbing your with income

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Relationships with banks : You can get discounts on interest rates if you take a loan from a bank that you already deal with for your existing relationship, in this case banks will consider your past records of credit repayments and your saving account balance and you will be offered discounts on the basis of your current relationship.

Cibil Score Check : You must know that your credit history play a very important role in the acceptance of your loan application as CIBIL keeps a record of credit history by collecting your credit data from various financial institutions. A decent credit score not only gives a green signal to your loan application but also offer you lower interest rate by a bank.

Penalties : If you think of closing your loan earlier, this will invite the pre-payment charges levied by the bank which are upto 5% of the outstanding loan amount. Some banks have this norm wherein you are not allowed to close your loan within the first six months of your loan term. You should also know about the charges taken by the bank for paying your EMI late.

 Eligibility for this loan in Punjab National Bank 

i. All permanent Defense Personnel including officials of Military Station Headquarters, BSF, CRPF, CISF, ITBP

ii. Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed companies/ Institutions, who are drawing their salary through accounts maintained with our branches. OR Employer's of above categories agree for ‘check-off facility’

iii. Professionally qualified Doctors viz. MBBS, BDS & above having annual income of Rs.4.00 lac & above.

iv. Individual drawing salary through our Bank/availing loan under check-of facility with net monthly income:

 Rs.15000 per month for eligible customers at Metro Centres; Rs.12500 per month for eligible customers at Urban Centres; and 

Rs.10000 per month for eligible customers at Semi-Urban and Rural Centres.

However, for Teachers, Army Jawans, other permanent employees of Military Station Headquarters and Para Military Personnel whose salary is being credited and disbursed through our branches the minimum Net Monthly Income criteria shall be Rs.7500/- at all Centres viz. Metro, Urban, Semi-Urban and Rural.

(EMI should not exceed 50% of monthly salary/income)Nature and Amount of Loan Term Loan/ Overdraft – Minimum amount of loan will be Rs.50,000/- and maximum amount of loan Rs.4,00,000/- or 20 times monthly net salary, whichever is lower, depending upon the repaying

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capacity.Rs 5,00,000/- for those Salaried persons having completed service of 3 years in the present organization & drawing net monthly salary of nor less than Rs. 30,000/- Margin NIL Security Suitable guarantee acceptable to the Bank.

Repayment Term loan:60 Equated Monthly Installments (EMIs) OR remaining period of service, whichever is earlier. Installment to commence one month after disbursement of loan.

Overdraft: The overdraft limit shall be adjusted within a maximum period of 60 months by reducing Drawing Power(DP) equivalent to EMI amount at the beginning of every month. However, loan allowed to Army Jawans, other permanent employees of Military Station Headquarters and Para Military Personnel shall be Repayable in maximum 36 Equated Monthly Installments or remaining period of stay at the particular posting, whichever is lower.

Interest rate: 12.25% - 15%

 Upfront Fee 1.8% of the loan amount + Service Tax & Education Cess Documentation Charges 

Rs.270/- upto Rs.2 Lac + Service Tax & Education Cess Rs.450/- over Rs.2 Lac + Service Tax & Education Cess Upfront / documentation charges for defence personnel - NIL

In Case of Employees of Govt./Institutions etc.: In case of employees of government/institution etc., irrevocable letter of authority from the borrower to remit salary/installment and other amount payable to bank. Post dated cheques towards monthly installments be obtained from the borrower under the cover of ‘letter of deposit’ (Mandate of the borrower conveying deposit of PDCs for appropriation in the loan account).Where the employer agrees to check off facility, at least one PDC to be obtained.

In case of Army Officers : In case of Army Jawans, Other permanent employees of Military Station Headquarters and Para Military Personnel (Undertaking to be obtained from the Station Commandant/ Unit Incharge at the time of retirement/death/transfer of a particular Jawan/Personnel or on transfer of a unit, loan under the scheme will get adjusted.)

 

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 PERSONAL LOAN SCHEME FOR LIC AGENTS

 LIC agents who receive regular commission from LIC of India and maintain accounts with our Branches are eligible for Personal Loan on the terms and conditions as under:   I. Eligibility:  

LIC agents aged below 60 years with more than FIVE YEARS of agency, having regular and stable income and maintaining SF a/c with our branch.

 II. Income Criteria:

 Renewable Average Commission (average of the commission received during the preceding twelve months) must be at least Rs.10,000/- per month. (Form 16 issued by LIC reflects the renewal commission).

 III. Maximum amount of loan:

 Rs.2.00 lac or equivalent to 15 times of average monthly commission received during the preceding 12 months, whichever is lower. 

IV. Rate of Interest: Base Rate + 5% 

V. UPFRONT FEE & DOCUMENTATION CHARGES

Upfront Fee 1.80% + service tax

Documentation charges Rs. 2 lac: Rs.270+ service tax

IV. Security:

i) Suitable third party guarantee acceptable to the Bank and assignment of LIC policy of self, with sum assured equivalent to loan amount.

OR 

ii) Tangible Collateral Security of the value of 100% of loan amount.  V. Repayment:

 60 EMIs or upto 65 years of age of LIC agent, whichever is earlier.

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Education Loan | Student Loan

Education Loan: Education loans/Student loans are easily available from many banks and financial institution facilitating many students to pay for their higher education.

Special Education Grant

Special education generally refers to students who are differently-abled. However, it can also refer to students who require special education needs in other ways. For example, students with emotional difficulties that make it difficult to study may qualify for certain types of special education grants and loans. Students who are not able to attend regular classes for a specific reason may also qualify for special education loans and special consideration when pursuing a college degree. If, for example, you are hospitalized, you may qualify for special aid. Special education grants exist from a number of sources. These types of aid do not have to be paid back but allow students to pay for their education.

Grants for special education should be sought out earnestly by those were qualified for them. When it comes to grants, special-education students do qualify for both regular grants and special education grants. Students will want to apply for both types of grants to ensure that they get the funding they need.

Special Education Financial Aid options:

If you have a condition that prevents you from attending classes or taking part in degree programs regularly — for example, you are differently-abled or seriously ill and cannot leave the hospital room — then special grants and loans exist to help you pay for education. Students with special needs often find that they require extra money for school. They may require Braille translated textbooks, for example, or they may require special computer equipment that allows them to study. Grants designed especially for special-education hope to address these additional costs for students while at the same time encouraging students with different abilities to apply for degree program.

Criteria for Special-Education Scholarship, Grant, or Loan:

If you have trouble with school because of the physical, emotional, or mental challenge, then chances are pretty good that there are financial aid options available for you. Some types of special-education scholarships or grants are designed for people with specific types of challenges. Others are simply earmarked for anyone who faces special challenges when pursuing an education.

Depending on the grants or scholarships to apply for, you may find that you require additional application materials. Often, you will need to provide a doctor’s note or some other confirmation of your condition. You’ll often also be asked to describe how your condition affects your ability to function.

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Types of Special-Education Financial Aid Options:

If you have special needs when it comes to education, there are many places that you can turn to for financial aid:

–         The American Council on Education’s HEATH Resource Center Offers Financial Aid and Advice and Resources for Students

–         Special Government Grants and Scholarships Exist for Students with Special Needs

–         Private Scholarships Created Specifically for Students with Special Education Needs – Your school’s financial aid office will have a list of such private scholarship and grant opportunities. Most schools have their own scholarships and grants designed for differently-abled students. If your school has a special education office or center, that center will be able to give you additional help and resources.

Special Education Loans

If you require additional money because of special needs, special-education borrowing can help you make up the difference between your needs and your financial aid package. Federal student loan programs as well as private lenders will be able to lend you money that you can use toward your schooling. Once you finish your schooling or no longer enrolled, you will need to pay back your debt — with interest.

Distance Education Loans

Distance education is more popular than ever today. It allows students to study remotely, without having to attend classes at a university. This allows students from all walks of life to pursue a college education without disrupting their family or work life. While there is no doubt that distance education makes education more accessible to many, students often find that they require distance education loans in order to pay for their remote education. Distance learning education loans are more available than ever before. Students can now turn to a number of sources in order to get the money they need to succeed in school.

Alternative Education Loans

Alternative education loans are also known as private education loans. These loans are simply amounts of money lent by private lenders. They may be offered by banks, private companies, or other financial institutions or persons. The loans are attractive to distance education students because they are so flexible. You do not need to be a full-time student, in many cases, to qualify for some form of loan. You often do not need to be a United States citizen in order to apply for such loan. You can also apply this type of education loan to any school you attend.

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Financial Institution Loans – Flexible Loans

Do you need a loan for education, because you’re going to college, university, or some other form of school?

You should consider private loans from financial institutions. Student loans from financial institutions are very flexible, have competitive rates, and can be used for a wide variety of school related expenses.

Bank Loans

If you’re looking for online distance education loans, you may wish to seek out traditional loans as well. Traditional lines of credit, credit cards, personal loans, and other types of loans can provide a good alternative to distance education loans. These loans can help you pay off your education, and do not require an extensive application process. As long as your credit is decent, you can get approved with competitive interest rates. Of course, you will need to start repaying your loan right away. However, since many people pursuing distance education work full time as well, this is rarely a problem. An advantage of this type of loan is that it does not leave the student with a large debt after graduation. Plus, since many people pursuing distance education do so one course at a time, it is possible to get out one or two small loans in order to pay for education. In many cases, students find that this is enough.

Employer Education Loans

Some employers offer their employees financial assistance in order to go to school. Often, this is because extra education can make an employee more productive and more valuable to the workplace. Some employers are willing to offer private loans, or offer loans based on employers retirement contributions, in order to allow the employee to attend distance education courses.

NOW we have all the options in front of you to make the educational journey backed by proper financial assistance if you need any. Happy studying…

This loan in Punjab National Bank is available with the name “ VIDHYAPURTI”. The Scheme aims at providing financial assistance to deserving / meritorious students (Indian Nationals) for pursuing higher professional and technical education in India or abroad.

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Studies in India

       Graduation courses – B.A., B.Com., B.Sc., etc.,

       Post-Graduation courses, Masters & Ph.D;

       Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.,

       Computer Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University;

Courses like ICWA, C.A., CFA, etc.,

Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.,

Regular Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR,

    Regular Degree / Diploma courses like Aeronautical, Pilot training, Shippling etc. approved by Director General of Civil Aviation/ Shippinge, if the course is persued in India. In case the course is pursued abroad, the Institue should be recognised by the competent local (abroad)Aviation/Shipping authority.

    Advance Diploma in Banking Technology offered by PNBIIT, Lucknow.

   Courses offered in India by reputed foreign universities.

   Other courses leading to Diploma/Degree etc. conducted by colleges/universities approved by UGC/Govt./AITCE/AIBMS/ICMR etc.

   Courses offered by National Institutes and other reputed Private Institutes.

   Diploma courses, Diploma Leading to Degree Courses local as well as abroad and courses offered by recognised universitis of repute through distance learning etc.

Studies Abroad:

       Graduation- for job oriented professional/technical courses offered by reputed universities abroad.

       Post Graduation cources- MCA, MBA, MS, etc. offered by reputed universities abroad.       Courses conducted by CIMA- London, CPA in USA etc.Students should approach the branch nearest to the place of residence of their parents..Interest is charged monthly on simple basis during the repayment holiday/moratorium period &

concession of 1% in rate of interest is allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for Student borrowers.

 

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Eligibility for this Loan in Punjab National Bank: Student eligibility

         Should be an Indian National.

2.     Secured admission to Professional / Technical Courses in India or abroad through Entrance Test / Merit based Selection process.

  

Expenses considered for Loan         Fee payable to College / School / Hostel

         Examination / Library / Laboratory fee.

         Purchase of books / equipments / instruments / uniforms.

         Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, subject to the condition that the amount does not exceed 10% of the total tution fee for entire course..

         Travel Expenses / Passage money for studies abroad.

         Purchase of computers - essential for completion of the Course.       Insurance premium for student borrower       Boarding and lodging expenses in recognised Boarding Houses / private accomondations

  9.    Any other expense required to complete the course - like study tours, project work, thesis etc.

   

  Quantum of Finance:  

Need based finance, subject to repaying capacity of the parents / students with margin and the following ceilings :-

  For studies in India: Maximum Rs.10.00 lacs.

  For studies abroad: Maximum Rs.20.00 lacs. Margin:   

Upto Rs.4.00 lacsNil.Above Rs.4.00 lacs Studies in India 5%

Studies Abroad 15%

   

Security:

 

 Upto Rs.4.00 lacs: Co-Obligation of Parents. No Security

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Above Rs 4.00 lacs and Upto Rs 7.5 lacs: Co-Obligation of Parents together with collateral security in the form of suitable 3rd party guarantee acceptable to the Bank

Above Rs 7.5 lacs: Co-Obligation of Parents. Collateral Security of suitable value along with Assignment of future income of the student for payment of installments

The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.

The document should be executed by both the student and the parent/guardian.

Interest Rate:  

Repayment:  

 Repayment Holiday / Moratorium Course period + 1 year OR 6 months after

getting job, whichever is earlier.

 The Principle and interest is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.

 

Upfront Fee :  

          For Study in India - Nil

     For Study abroad - @ 0.50% with a maximum of Rs. 5000/-(refundable on availment of the loan amount)

 

Documentation Charges:  

   Upto Rs. 4 lacs Rs.270/- + Service Tax & Education Cess

  Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess 

Additional Benefits provided to the students by PNB:

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 A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10 lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl student borrowers wef. 08.03.2009. 

1% interest concession may be provided for loanees if the interest is serviced during the study period/moratorium period.

Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

 

Check List : 

         

While applying for the loan, the borrower is required to furnish the following information/papers:

  o    Loan application on Bank's format.

  o    Passport size photograph

  o    Proof of Address(Permanent) / ID Proof.

  o    Proof of Age.

  o    Proof of having secured pass marks in last qualifying examination.

  o    Letter of admission in professional, technical or vocational courses.

  o    Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.

  o    Details of Assets & Liabilities of parents.

  o    In case loan amount is above Rs.4.00 lacs :   o    Detail of Assets & Liabilities of parents/co-obligants/ guarantors.  o    In case loan is to be collaterally secured by mortgage of IP, Copy of Title Deed,

Valuation Certificate and Non Encumbrance Certificate from approved Lawyer of the Bank to be obtained at the cost of the borrower.

  o    Photocopy of Passport & Visa, in case of study abroad.

  Any other document/information, depending upon the case and purpose of the loan.  

HOAM LOAN

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Home Loan Trends October 2011

Home Loan interest rates has touched average of 11% .This is due to hike in policy by RBI and other market conditions. Many banks like ICICI, HDFC Ltd, LIC Housing Finance have come up with fixed schemes for 1-5 years. Axis has come out a scheme which is fixed for entire 20 years but with rate is above 1% than normal rates. SBI and other PSU banks have not launched such schemes as yet. We at Deal4loans believe another hike of .25 to .5% and then this be the peak of Home loan rates. With news of slowdown etc RBI is expected not to do two many raises after this. After this situation may ease and interest rates may fall. To take a Home loan with a fixed rate of 1 year is a good rather than opting for a pure floating rate Home loan. Property prices haven’t come down so delaying to buy your home to live in is not a good idea.

What is a Home loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Home Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan the banker can retrieve the lent money by selling the property.

Most borrowed home loans:

SBI Home Loan: Before borrowing any loan borrower compare interest rates. Generally people prefer to take SBI Home Loan because SBI (State bank of India) is main centralized and national bank. SBI provideloan at comparatively low interest rate.

HDFC stands for Housing Development Finance Corporation. Its has counseling and advisory services for acquiring property. It provide loan from any office for purchase of home anywhere in India. It gives Home Loan approval even before a property is selected. Because of flexible feature and transparent policy, most people prefer .HDFC home Loan for their requirement

ICICI Bank Home Loan: ICICI Bank offers a wide range of Home Loan products, designed to meet the requirements of customer. : ICICI Bank offers Doorstep service, Speedy loan sanction, Simplified documentation and Loan amounts ranging from Rs. 2 lakh to Rs. 3 crore Rupees only.

Types of Home Loan:

There are different types of home loans available in the market to cater borrower’s different needs.

• Home Purchase Loan : This is the basic type of a home loan which has the purpose of purchasing a new house.

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• Home Improvement Loan : This type of home loan is for the renovation or repair of the home which is already bought.• Home Extension Loan : This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc.• Home Conversion Loan : It is that loan wherein the borrower has already taken a home loan to finance his current home, but now wants to move to another home. The Conversion Home Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfills the money required for new home.• Bridge Loan : This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home.

• Home Construction Loan : This type of loan taken when the borrower wants to construct a new home.

• Land Purchase Loan : It is that loan which is taken to purchase a land for construction & investment purposes.

Documents required in Home Loan:

Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:• Age Proof• Address Proof•Income Proof of the applicant & co-applicant• Last 6 months bank A/C statement• Passport size photograph of the applicant & co-applicant

In case of Salaried:-• Employment certificate from the employer,• Copies of pay slips for last few months and TDS certificate.• Latest Form 16 issued by employer Bank statements.

In case of Self-employed:-• Copy of audited financial statements for the last 2 years.• Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company’• Profit and loss account for the last few years• Income tax assessment order.

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Home Loan Process & various steps involved:

There are various steps involved in getting a Home Loan from selecting your property to filling up the loan application. Following are the various stages in Home Loan:

• The first step involved in the process is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria.

• Know the Home Loan Eligibility : Banks offer the loan amount only after checking your profile & based on various eligibility criteria’s like age, income & salary banks lend you the money.

• Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other fees & charges like Application fees, processing fees, legal charges should not be neglected when comparing various loan offers.

• Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.

• Documentation & Verification Process : You are required to submit the necessary documents to the bank which will be verified together with the details in the application.

• Credit & default check : Bank checks out the borrower’s loan eligibility (through repayment capacity) & the amount of loan is confirmed. The borrower’s repayment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application.

• Bank sanctions Loan & Offer letter to the borrower : After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.

• Acceptance Copy to the Bank : The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter.

• Bank checks the legal documents : The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.

• Signing of agreement & the loan disbursal : The borrower signs the loan agreement & the bank disburses the loan amount.

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Charges in Home Loan:

Acquiring a Home Loan doesn’t only involve the cost of home loan interest rates but it also includes other charges & fee accompanying at various stages of taking the Home loan. You must consider all these charges while comparing the cost structure across banks. Following is the detailed fee structure incurred by banks at different loan stages:

• Processing Charge : It is a fee payable at the time of submitting the loan application to the bank which is normally non-refundable. The fee ranges between 0.5 per cent and 1 per cent of the loan amount.

• Administrative Fee : It is a fee incurred by banks at the time of loan sanction; there are few banks who have removed this fee so you must check it with all the banks.

• Prepayment Penalties : When the borrower pre-pays the loan before the loan tenure, banks charge a penalty which usually varies between 1 per cent and 2 per cent of the pre-paid amount.

• Legal Charges : Banks also incur some charges from the customer for legal and technical verification of the property.

• Delayed payment Charges : When there is a delay in the payment of your EMI, banks charge a late payment fee from the borrower which normally ranges from 2% to 3% of the EMI.

• Cheque bounce charges : Banks charge between Rs. 250 and Rs. 500 for every bounced cheque towards the loan payment because of lack of funds in your account.

Important Pointers in Home Loan:

• Increase your Loan eligibility

• Credit History : Your chances of getting a home loan are increased if you have a good credit history which is known by banks by checking the borrower’s Cibil score. Now it is very hard to get a loan from another bank when you already have a bad debt with one bank.

• Clubbing of income : Your eligibility to take a home loan will augment when you club your income with your spouse’s income, bank in this case will calculate your eligibility on the basis of the clubbed income of both the applicants. You can club incomes of spouse, children & parents staying with you and having regular income.

• Enhance your loan tenure : Longer is the loan tenure, lower will be the EMIs which further increases the repayment capacity of the borrower & in turn enhances the loan eligibility.

• Step-up Loan: In this type of loan EMIs remain low in the beginning & increase gradually as and when the borrower’s spending power increases. Therefore lower EMIs in the initial years enhances the borrower’s ability to pay & further increases the loan eligibility.

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• Increase the down payment : You must know that in a home loan bank finances only 85 to 90% for the property & the rest amount has to be funded by the borrower. You should increase the down payment if you have more than required amount which will mitigate your debt considerably.

Tax Benefits in Home Loan:

The home loan borrower enjoys Tax Benefits on both Interest paid & the Principal re-paid. Under Section 24(d) of Income Tax, the deduction of interest payable on the home loan is up to a maximum of Rs. 1, 50,000.

Under Section 80(c) of Income Tax, Principal amount for the repayment of loan along with other savings & investments is eligible for tax deduction up to a maximum limit of Rs. 1, 00,000.

Regular Housing Finance Scheme for Public by Punjab National Bank

PNB reaches out to you with fast, friendly and most convenient home loans under Normal and Flexible variants (Details also available seperately) having highlighting features :

1. Highlights: Option to choose between Floating and Fixed interest rates. Longest Repayment period of 25 years For Term loan component of flexible variant 0.25% lower interest rate than under normal variant

under all tenors of repayment Flexible repayment option No hidden charges Quick and Fast processing

2. Purpose: Construction or purchase of new/old house/ flat/ plot (Finance for purchase of plot is allowed only

under Normal Scheme). Purchase of house/ flat on First Power of Attorney basis from the original allottee. Carrying out repairs/ renovations/ additions/ alterations/ furnishing. After 3 years loan for personal needs allowed only under Flexible variant.

Borrowers are entitled for 20% increase in the original total limit sanctioned after a lapse of five years under Flexible variant.

5. Eligibility:

Under Normal variant Individuals & Joint owners (age group of 18-65 years) having regular source of income. Income of spouse/children can also be added. 

 Under Flexible variant: Customers who are below the age of 50 years and existing Housing loan borrowers who have availed loan under our Housing Loan scheme for public. 

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4. Loan Amount: For construction/purchase of house/flat:- Need based. Cost of car parking upto the maximum extent of 5% of the cost of flat/house can be considered in the

cost of the project. For carrying out repairs/ renovations/ additions/ alterations: - Maximum of Rs. 20 lacs. For furnishing of house – Maximum Rs. 2 Lacs

For purchase of Land/ Plot - Maximum Rs. 20 Lacs.5. Disbursement:

Under Normal variant – in the shape of a Term Loan 

For purchase of Built-up house/ flat - In lump sum (Down Payment) .

For construction of house/ under construction flat -  The loan amount will be 

     disbursed in stages as per progress of construction/ demand by selling agency:-

Under Flexible variant – 80% in the shape of Term Loan and 20%  as overdraft.  

Overdraft limit can be enhanced maximum upto 50% of the total loan amount sanctioned originally and first such enhancement is allowed after three years    

Extent of enhancement in overdraft limit will be equal to reduction in term loan amount.  These enhancement in overdraft limit are for personal needs and allowed through esperate overdraft account.

6. Margin:Construction/ purchase/ repairs/ renovations/ additions/ alterations – 25%

Land/ Plot – 40%

7. Fee/Charges: For loans upto Rs. 300 lacs = 0.50% of the loan amount max. of Rs. 20,000/- + taxes For loans above Rs. 300 lacs =0.90% of the loan amount + taxes

Documentation charges of Rs. 1350/- + taxes

8. Repayment: For Term Loan component under Normal or Flexible variant:-

For construction/purchase of house/flat  - Maximum of 25 years or borrowers attaining age of 65 years whichever is earlier (can be extended upto the age of 70 years under banks discretion) to be repaid in equated monthly installments inclusive of maximum moratorium period of 18 months.

For carrying out repairs/ renovations/ additions/ alterations  - Maximum of 10  years inclusive of maximum moratorium period of Six months.

For Overdraft component of Flexible variant  Repayment shall be as under:-           For borrower below 55 years : Servicing of interest as and when charged i.e.  

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             on monthly basis.

            For 55 years and above : On monthly reducing drawing power maximum upto

             the age of 65 years.

9. Moratorium/ Repayment Holiday:

Moratorium or Repayment holiday where loan is allowed for construction till completion of construction or 18 months (6 months in case of repair/ renovation/ addition/ alteration) from the date of disbursement of first installment of the loan, whichever is earlier.

10. Pre- Payment Charges: Nil-  where the loans is prepaid by the borrower from his/her own sources Nil- where the borrower shifts to other bank within 30 days from the date of   upward revision in the

rate of interest to be charged in his/her account or change in other terms of sanction.

2 % - where the account is taken over by some other Bank/ Financial institutions.11. Security :

Mortgage of property for which finance is being given.

Other Credit Schemes : 

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To meet your credit requirements, PNB is there with many attractive schemes to choose from: Scheme for advances to Road Transport Operators for purchase of Truck, Buses and advances

to owner-drivers of Taxi, Car, Scooter, Diesel Jeep, Station Wagons or Tempos etc. Scheme for advance to self-employed persons engaged in small business. Advance against Bank's own Deposits. Loans to individuals against Shares / Debentures / Bonds

Advances against Govt. securities, postal securities, IVPs, KVPs, Jewellery, FDRs of PNB Subsidiaries, Units of UTI & other Mutual Funds, Pensioner's Benefit Scheme etc.

 

TRADE FINANCE

  Our large network of branches and experienced staff ensure that your import documents are processed and settled without any delay. Our Product range includes funded and non funded credit

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lines with sub limits for Letter of Credit (LC), Letter of Guarantee (LG), Trust Receipt (TR), Demand Loan (DL) etc.

Issuance of Letter of Credit

Letters of Credit are issued by us to our own clients as per credit facilities extended to them.

Advising of LCs , amendments of LCs , Confirming of LCs and other related functions are undertaken for our customers.

Collection , Purchase and Discount , Negotiation of Export Bills (both sight and usance) is efficiently handled  for our valued customers.

Trust Receipts and Invoice Finance are other facilities being extended to our trade finance customers.

We handle documents drawn on our customers at competitive prices and in a professional manner.

For enquiries including opening of Customer Account and arranging to LC Issue Facility, please do contact us.

Buyers Credit

Short Term Finance up to 360 days from shipment date provided to Indian importers in US$ or in other major currencies at very competitive LIBOR linked rates, under Letter of Undertaking (LOU) of branches of PNB and other major Indian Banks.

The applicant’s Bank should send LOU by authenticated SWIFT on the prescribed format.   After availing the facility, the LOU issuing Bank/Branch should send acknowledgement of Debt by authenticated SWIFT as per prescribed formats.

Finance for capital goods imports to Indian Corporates

We also offer longer term Buyers Credit for import of Capital Goods as per RBI directives usually up to three years as per the terms of the underlying Letter of Credit. Pricing is attractive and depends on the tenor of the loan and the currency in which the loan is sought.

LOU and Acknowledgement of Debt are same as that used for normal Buyers Credit up to one year.

Supplier’s Credit

We offer competitive rates for discounting of Bills under Letters of Credit for a Tenor up to 180 days.  Bills with tenor of more than 180 days tenors could be considered subject to RBI approval.

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Term Loan:

We cater to the Medium/Long Term requirements of Industrial Corporates through matching bilateral Term Loans. Term Loans are normally arranged for funding of the following requirements:

High value import of capital goods like Plant and machinery. Low cost Foreign Currency requirements of new projects/expansion. Augmentation of Working Capital.

We can structure the term loans on various parameters such as tenor, repayment, pricing security package etc. depending on the specific requirement of the corporate.

 

Project Finance:

Gulf is an upcoming market where large projects are being undertaken both in the Industrial and in Infrastructure sectors. We extend financial assistance to green field projects on bilateral basis as well as in association with other banks.  We, in conjunction with PNB Investment Services Ltd. our investment Banking arm, assist entrepreneurs right from the stage of conceptualization to execution of project

Syndication:

We provide financial advisory services and arrange syndication of loan requirements for Indian and overseas Corporates. We also participate in syndications of corporate loans arranged by our international banking partners for short and medium term requirements.

CENTRAL SECTOR SCHEMES

1. Capital Investment subsidy Scheme for construction/ renovation/ expansion of rural godown

2.    Scheme for Strengthening of Agricultural Marketing infrastructure, grading and standardization

3. Capital Investment Subsidy Scheme for construction/ expansion/ modernization of Cold Storages

and Storages for Horticultural Produce.

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4.    Scheme for providing credit for projects for Development and Strengthening of

Infrastructure Facilities for Production and Distribution of seeds

5.     Scheme For Financing Agri-Business Projects With Venture Capital Assistance From Small

Farmers' Agri-Business Consortium (SFAC)

    6.    Dairy Entrepreneur-ship Development Scheme (DEDS)

   7.    Central Sector Scheme on Pig Development

  8.    Central Sector Scheme for Salvaging and Rearing of Male Buffalo Calves

    9. Scheme for integrated Development of Small Ruminants and Rabbits

10.    Scheme for Establishing “Poultry Estates” and Mother Units for Rural Backyard Poultry  

11.    Scheme for establishment / modernization of Rural Slaughter Houses.

 

1.Capital Investment subsidy Scheme for construction/ renovation/ expansion of

rural godown

Nodal Agency: Directorate of Marketing and Inspection

 Objectives:

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•    Creation of scientific storage capacity with allied facilities in rural areas for storing farm produce,

processed farm produce  and agricultural inputs;

•     Promotion of grading, standardization and quality control of agricultural produce to improve their

marketability;

•      Prevention of distress sale immediately after harvest by providing the facility of pledge financing

and marketing credit; 

•     Strengthen agricultural marketing infrastructure.

Eligibility:

•      Individuals, farmers, Group of farmers/growers, Partnership/ Proprietary firms, Non-Government

Organizations (NGO’s), Self Help Groups (SHGs).

•      Companies, Corporations, Co-operatives, Local Bodies other than Municipal Corporations,

Federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing

Corporations.

•      Assistance for renovation of rural godowns will be restricted to godowns constructed by

cooperatives only.

Subsidy:

•  33.33% of the capital cost of the project in case of projects located in North – Eastern States,  hilly

areas and those belonging to Women Farmers/ their self help groups / co-operatives and SC/ST

entrepreneurs & their self-help groups/ Co-operatives subject to a maximum ceiling on subsidy of

Rs.62.50 lakh. 

• 25% of the capital cost of the project  to all categories of farmers (Other than Women Farmers),

agriculture graduates, cooperatives and State/ Central Warehousing Corporations subject to a

maximum ceiling on subsidy of Rs. 46.87 lakh. 

•15% of the capital cost of the project to all other categories subject to a maximum ceiling on subsidy

of Rs. 28.12 lakh.

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2.Scheme for Strengthening of Agricultural Marketing

(infrastructure, grading and standardization)

Objectives:

•       To provide additional agricultural marketing infrastructure

•       To promote competitive alternative agricultural marketing infrastructure by inducement of

private and coop. sector investments

•       To strengthen existing agril marketing infrastructure to enhance efficiency

•       To promote direct marketing so as to increase market efficiency

•       To provide infrastructure facilities for grading, standardization and quality certification of

agricultural produce.

•       To promote grading, standardization and quality certification system for giving a major thrust for

promotion of pledge financing and marketing, credit, introduction of negotiable warehousing receipt

system and promotion of forward and future markets

•       To promote direct integration of processing units with producers.

•       To create general awareness and provide education and training to farmers, entrepreneurs and

market functionaries

Eligibility:

•          Individuals, Group of farmers/ growers/ consumers, Partnership/Proprietary firms, Non-

Government Organizations (NGOs), Self Help Groups (SHGs).

•       Companies, Corporations, Autonomous Bodies of the Government, Cooperatives, Cooperative

Marketing Federations, Local Bodies, Agricultural Produce Market Committees &  Marketing

Boards.

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Subsidy:

•          33% for NE States, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Hilly and

Tribal areas/ SC & STs and their cooperatives.

•          25% for others.

•       Maximum amount of subsidy shall be restricted to Rs.50 lakh for each project.  In the case of

North Eastern States, hilly and tribal areas, in the States of Uttarakhand, Himachal Pradesh, Jammu &

Kashmir and to entrepreneurs belonging to SC/ST and their cooperatives, maximum amount of

subsidy shall be Rs.60 lakh for each project.

•       In respect of infrastructure projects of State Agencies, there will be no upper ceiling on subsidy

to be provided under the scheme.

Subsidy is back ended. 

3.Capital Investment Subsidy Scheme for construction/ expansion/ modernization

of Cold Storages and Storages for Horticultural Produce.

Objectives:

•       Construction/expansion /modernization of cold storages and storages for horticultural produce to

minimize post harvest losses

Eligibility:

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•       Cooperatives, Companies, Corporations, Partnership and Proprietary firms,

•       Agricultural Produce Marketing Committees/Boards,

•       Agro-Industries Corporations and Growers' Associations.

Subsidy:

Subsidy is back-ended capital subsidy

The subsidy will be available @ 40% of the Capital cost of project in general areas and 55% in case

of Hilly & Scheduled Areas.

However, the subsidy will be available for maximum storage capacity of 5000 MT and the rate will

vary from Rs 1000/- to Rs 32000/- per MT depending upon the type of Storages.

4.Scheme for providing credit for projects for Development and Strengthening of

Infrastructure Facilities for Production and Distribution of seeds

Nodal Agency: National Seeds Corporation (NSC) 

Objectives:

•       To provide credit for projects for development creation of infrastructure for seed production, i.e,

seed cleaning / grading / processing / treating / packaging, seed storage units, seed testing labs, etc.

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Eligibility:

•       Individuals, Private Companies, Corporates, Self Help Groups (SHGs) and Seed Cooperatives.

Subsidy:

•       25% with a maximum of Rs.25 lakh per unit. Subsidy is back ended.

5.Scheme For Financing Agri-Business Projects With Venture Capital Assistance

From Small Farmers' Agri-Business Consortium (SFAC) 

Nodal Agency: Small Farmers' Agri-business Consortium (SFAC)

Objectives:

•       To help promote investments in agri-business projects that are dependent on agriculture and

allied activities and which will lead to increased rural employment, rural income and encourage

farmers to diversify into high value crops. 

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Eligibility:

Individuals/ producer groups /organizations which meet the following criteria:

•       Projects dependent upon agricultural or allied produce,

•       Projects provide direct access to producers as assured market,

•       Projects encourage farmers to diversify into high value crops to increase farm incomes,

•       Bank has accepted project for grant of term loans after satisfactory techno-commercial

feasibility,

•       Project must be over Rs.50 lakh in size( Rs. 25 lakh in case of NE States and other Hilly

Areas).  

Venture Capital:

The amount of Venture Capital Assistance shall be the lowest of any of the following :- 

•       10 per cent of the project cost assessed by the bank OR

•       26 per cent of project equity OR

•       Rs.75.00 lakh.  

Dairy Entrepreneur-ship Development Scheme (DEDS) 

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl  

Objectives:

•       To promote setting up of modern dairy farms for production of clean milk

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•       To encourage heifer calf rearing thereby conserve good breeding stock

•       To bring structural changes in the unorganized sector so that initial processing of milk can be

taken up at the village level itself.

•       To bring about upgradation of quality and traditional technology to handle milk on a commercial

scale

•       To generate self employment and provide infrastructure mainly for unorganized sector. 

Eligibility:

•       Farmers, individual entrepreneurs, NGOs, Companies, groups of unorgainsed and organized

sector etc. Groups of organized sector include SHGs, dairy cooperative societies, milk unions, milk

federations etc.

•       An individual to avail assistance for all the components under the scheme but only once for each

component.

•       More than one member of a family can be assisted provided they set up separate units with

separate infrastructure at different locations. The distance between boundaries of two such farms

should be at least 500m.

 

Component Unit Cost Pattern Assistance (Back Ended Capital Subsidy)

Establishment of small dairy

units with crossbred cows/

indigenous descript milch

cows like Sahiwal, Red Sindhi,

Gir, Rathi etc / graded

buffaloes upto 10 animals

Rs 5.00 lakh for 10

animal unit – minimum

unit size is 2 animals

with an upper limit of

10 animals.

25% of the outlay (33 .33 % for SC / ST

farmers,) subject to a ceiling of Rs 1.25

lakh for a unit of 10 animals ( Rs 1.67 lakh

for SC/ST farmers,). Maximum

permissible subsidy is Rs 25000

(Rs.33,300 for SC/ST farmers) for a 2

animal unit.

Rearing of heifer calves – Rs 4.80 lakh for 20 calf 25% of the outlay (33.33 % for SC / ST

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cross bred, indigenous descript

milch breeds of cattle & of

graded buffaloes – upto 20

calves

unit – minimum unit

size of 5 calves with an

upper limit of 20 calves.

farmers) subject to a ceiling of Rs 1.20

lakh for a unit of 20 calves (Rs 1.60 lakh

for SC/ST farmers). Maximum permissible

subsidy is Rs 30,000 (Rs.40,000 for SC/ST

farmers) for a 5 calf unit.

Vermicompost (with milch

animal unit .To be considered

with milch animals and not

separately )

Rs 20,000/- 25% of the outlay (33.33 % for SC / ST

farmers) subject to a ceiling of Rs 5,000/-

( Rs 6700/- for SC/ST farmers,).

Purchase of milking

machines /milkotesters/bulk

milk cooling units (upto 2000

lit capacity)

Rs 18 lakh 25% of the outlay (33.33 % for SC / ST

farmers) subject to a ceiling of Rs 4.50

lakh ( Rs 6.00 lakh for SC/ST farmers).

Purchase of dairy processing

equipment for manufacture of

indigenous milk products

Rs 12 lakh 25% of the outlay (33.33 % for SC / ST

farmers) subject to a ceiling of Rs 3.00

lakh ( Rs 4.00 lakh for SC/ST farmers)

Establishment of dairy

product transportation

facilities and cold chain

Rs 24 lakh 25% of the outlay (33.33 % for SC / ST

farmers) subject to a ceiling of Rs 6 lakh

(Rs 8 lakh for SC/ST).

Cold storage facilities

for milk and milk products

Rs 30 lakh 25% of the outlay (33.33% for SC / ST

farmers) subject to a ceiling of Rs 7.5

lakh (Rs 10 lakh for SC/ST).

Establishment of private

veterinary

clinics

Rs 2.40 lakh for

mobile clinic and Rs

1.80 lakh for stationary

clinic

25% of the outlay (33.33% for SC / ST)

subject to a ceiling of Rs 60,000/- and Rs

45,000/- (Rs 80,000/- & Rs 60,000/- for

SC/ST) respectively for mobile and

stationary clinics

Dairy marketing outlet

/ Dairy parlour

Rs 56,000/- 25% of the outlay (33.33 % for SC / ST

farmers) subject to a ceiling of Rs

14,000/-( Rs 18600/- for SC/ST).

 

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6.Central Sector Scheme on Pig Development

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl

Objectives:

•       To encourage commercial pig rearing by farmers/ labourers to improve production performances

of native breed through cross breeding by using selected animals of high performing breeds and by

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providing incentives in terms of capital subsidy for ensuring the viability of the pig breeding, rearing

and related activities.

Eligibility:

•       Producer companies, partnership firms, corporations, NGOs, SHGs, JLGs, cooperatives and

individual entrepreneurs.

 

Components Subsidy

Pig breeding farms

25% of the outlay (33 1/3 %) in NE states including Sikkim and hilly

areas) subject to a ceiling of Rs. 1.50 lac (Rs. 2.00 lac in NE states

including Sikkim and hilly areas)

Pig rearing & fattening

units

25% of the outlay (33 1/3 %) in NE states including Sikkim and hilly

areas) subject to a ceiling of Rs.19000/- (Rs. 25300/- for NE states

including Sikkim and hilly areas)

Retail outlets

25% of the outlay (33 1/3 %) in NE states including Sikkim and hilly

areas) subject to a ceiling of Rs. 2.50 lac (Rs. 3.33 lac in NE states

including Sikkim and hilly areas)

Facilities for live

markets 50% of the outlay subject to a ceiling of Rs. 2.50 lac.

 

7.Central Sector Scheme for Salvaging and Rearing of Male Buffaloe Calves

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl

Objectives:

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•       The scheme aims at salvaging male buffalo calves and rearing them economically for meat

production and recovery of hides to enlarge raw material base for leather industry and improve

availability of by-products, thus leading to creation of employment opportunities in rural areas.

Eligibility:

•       Companies, partnership firms, corporations, NGOs, SHGs, JLGs, cooperatives, farmers and

individual entrepreneurs.

•       Preference for SC/STs, women beneficiaries & for individual units. They should constitute at

least 40% of total beneficiaries

Subsidy:

•       Individual units (Mode -1) farmers who own the calves: 100% interest subsidy.

•       Commercial units (Model-II) for those purchasing calves: 25% of the outlay (33-1/3 % in NE

states including Sikkim and hilly areas) for rearing of 10-50 male buffaloe calves (with a ceiling of

Rs. 21,750/- for a unit of 10 calves (Rs.29000/- for NE states including Sikkim and hilly areas).

Maximum permissible capital subsidy is Rs. 1.09 lac (Rs. 1.45 lac for NE states including Sikkim and

hilly areas) for a 50 calves unit. No interest subsidy is available under this component.

•       Industrial units (Model-III): 25% of the outlay (33-1/3% in NE states including Sikkim and hilly

areas) subject to a ceiling of Rs.20.86 lac (Rs.27.81 lac for NE states including Sikkim and hilly

areas). No interest subsidy is available under this component.

Subsidy is back ended.

8.Scheme for integrated Development of Small Ruminants and Rabbits

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl

Objectives:

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•       To encourage sheep/goat/rabbit rearing farmers to go in for commercial rearing rather than

subsistence farming by providing incentives for performance.

•       The production performance of native breeds will be improved by regular selection and culling

based on measurable indicators.

•       Facilitate marketing based on acceptable norms so that producer gets a fair share of the price

paid by ultimate consumer for the meat.

•       To encourage value addition of the products locally and help farmer realise a better income from

the animals.

Eligibility:

•       Individual farmers, SHGs are the intended beneficiaries for setting up rearing units. And

preference would be given for traditional shepherds, women, SC and STs.  

•       Individual farmers, NGO’s, Companies would be eligible for breeding farms with preference for

those who have organised the farmers into groups for taking up rearing of small ruminants and rabbits

 9.Scheme for Establishing “Poultry Estates” and Mother Units for Rural

Backyard Poultry:

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl

Objectives:

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•       Encourage small & marginal farmers, educated & unemployed youth, women, socially &

economically backward section of the society to take up activities of poultry sector in a

compact area by providing required infrastructure and related facilities.

•       Achieve economies of scale by adopting cluster approach, better resource sharing etc.

•       Putting technical-backstopping, training and operation procedures in place in theseunits to

prevent risk of loss from breach of bio-security and disease.

•       Restore consumer confidence in products from these estates and encourage brand recognition

and therefore ensure a steady market. Farmers may exploit opportunity provided by these

estates to become exporters of poultry products.

•       Eventually, these model poultry estates should have a snowball effect and propel private

sector to pay attention to bio-security issues, hygienic, pollution-free production and most

important of all, welfare of primary farmer etc.

Eligibility:

•       Small and marginal farmers, educated and unemployed youth, women, socially and

economically backward section of the society.

Assistance to State Poultry Farms: 100% centrally funded for North Eastern States and for other

States, it is shared between Centre and State on 80:20 basis. No financing by the bank is involved as

the entire assistance will be met by the Central / State Govt.

Rural Backyard Poultry Development: Mother units with a unit size of 1500 chicks would be

established a with the unit cost of Rs 1.36 lakhs; for which

Subsidy : Rs. 0.20 lakh (as borrower’s margin) & Rs. 0.36 lakh as Interest free loan

Poultry Estates: The scheme envisages establishment of a maximum of 100 broiler or layer units of

2000 birds each, per poultry estate, which will be eligible for Interest Free Loan @ 50% of total

financial outlay (TFO) of the project.

Feed manufacturing units that are set up in poultry estates will also be eligible for Interest free loan @

50% of the outlay.

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10.Scheme for establishment / modernization of Rural Slaughter Houses.:

Nodal Agency: Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of

Agriculture GOl

Objectives:

•       To establish a new system of slaughter of livestock along with network of cold chain and

distribution on commercial basis.

•       To develop models of slaughterhouses which can be run by private entrepreneurs in rural &semi

urban areas with population of less than 50,000.

•       To encourage value addition to the products in rural areas so that livestock owners get better

income and wastage of byproducts of slaughterhouses is avoided.

•       To ensure hygiene in meat production from the slaughterhouse to consumer table by establishing

cold chain and distribution system.

•       Minimize clandestine slaughter & provide pollution free environment.

Eligibility:

•       Any company, partnership firm, NGO and individual entrepreneur if they set up/ modernize the

slaughter houses / poultry dressing units.         

•       Each entrepreneur would be eligible to avail benefit under the scheme for two units per State

with a ceiling of four units under the scheme.

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 S.No Component Quantum of Capital Subsidy

1. Establishing small/medium /large slaughter houses: a. Model I - upto 50 small ruminants 50 % of total financial outlay subject to a ceiling

of Rs.30 lakh

b. Model II -upto 25 large and 50

small ruminants

50 % of total financial outlay subject to a ceiling

of Rs 45 lakh

c. Model III - upto 50 large and 200

small ruminants

50% of total financial outlay subject to a ceiling

of Rs 200 lakh

d. Poultry dressing units * 50 % of total financial outlay subject to a ceiling

of Rs 200 lakh

2. Modernisation of existing

facilities

50 % of total financial outlay subject to a ceiling

of Rs 200 lakh

3. Byproducts utilization plant 50 % of total financial outlay subject to a ceiling

of Rs 30 lakh

4. Cold storage and cold chain 50 % of total financial outlay subject to a ceiling

of Rs 30 lakh

5. Certification on quality Rs 2 lakh per unit as grant

* Total amount of subsidy for poultry dressing units will be limited to 25%, (Rs 10 crore).

Subsidy is back ended with minimum 3 Years lock-in period

MICRO AND SMALL ENTERPRISES SCHEMES

The spirit of Enterprise knows no boundaries, irrespective of the scale of operations. Realizing the significance that, Micro and Small Sector contributes 40% of the gross turnover in Manufacturing Sector, gives employment to 308 lakh persons, produces 7500 products and contributes more than 35% of the country's exports, PNB has formulated a number of schemes to provide a impetus for the growth of the Micro and Small Enterprises Sector. Amount Of Loan 

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Term Loan (Need based). Working Capital Requirement Computed and Sanctioned at 20% of projected realistic annual

turnover basis.

Composite Loan Limit has been raised to Rs. 100 Lakh (for Term Loan and Working Capital).      Application

1. Simplified Loan Application Forms for convenience of borrowers. 2. Online Application.

3. Speedy Processing within specified time norms, i.e:- 

Upto Rs.2 Lakh 2 weeks

Over Rs.2 Lakh and upto Rs.5 Lakh 4 weeks

Over Rs.5 Lakh 8 -9 weeks 

Collateral Security  

Advances upto Rs.10.00 Lakh without collateral security. 

Advances over Rs.10 Lakh and upto Rs.25 Lakh, based on good track record and financial position, no collateral insisted upon.

  Advances upto Rs.100 Lakh guaranteed under Credit Guarantee Fund Trust for Micro & Small

Enterprises (for manufacturing & service enterprises) without collateral security / third party guarantee.

Micro And Small Enterprises Schemes      1.   Sarthak Udyami - Scheme for financing Micro and Small Enterprises     2.   PNB Pragati Udyami - Scheme for financing Industry related Services / Business Enterprises     3.   PNB Kushal Udyami     4.   PNB Garrage Yogana     5.   Loans for setting up Industrial Estates     6.   PNB Vikas Udyami - Scheme for Loans acquisition of ISO - 9000 Series Certification

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     7.   SME Sahayog Scheme     8.   PNB Artisan Credit Card - Scheme to provide hassle free financial support to Artisan     9.   PNB Laghu Udyami Credit Card - A simplified Loan Delivery Mechanism     10.   Scheme for Advances to Small Road Transport Operators     

11.  Scheme for Advances to Owner-Drivers of Taxi Cars, Three Wheeler,  Station Wagons, Tempos, Etc.

     

1.Sarthak Udyami - Scheme for financing Micro and Small Enterprises Purpose of the Loan

For setting up new units; expansion, modernization & renovation of existing units; purchase of land, construction of building, machinery, equipment etc; and working capital facilities.

Eligibility

Micro Enterprises: Enterprises engaged in the Manufacturing or Production, Processing or Preservation of goods with investment in plant & machinery upto Rs. 25 lakh.

Small Enterprises: Enterprises engaged in the Manufacturing or Production, Processing or

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Preservation of goods with investment in plant & machinery above 25 lakh upto 500 lakh.

Loan amount

Need based. However Credit requirement upto 100 lakh for Working Capital and Term loan can also be provided as Composite loan.

Margin*Upto Rs.2,00,000/- NIL

Above Rs.2.00 lakh upto Rs. 5 lakh 15%

Above Rs. 5 lakh 20%Repayment

Upto 7 years (for term loan) depending upon projected profitability, over and above the gestation period of 6 to 12 months.

Collateral Security

- No Collateral Security and/or Third Party Guarantee for Loans upto Rs.100 lakh covered under Guarantee Scheme of Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).

2. PNB Pragati Udyami - Scheme for financing Industry related Services / Business Enterprises The financial assistance to both new and existing units, for acquiring fixed assets i.e. land, factory, building, plants, machinery and working capital facilities for Service industry like Advertising Agencies, Marketing / Industry Consultancy, Typing / Xerox Centre, Industrial Testing Labs, Cyber Café, Auto-repair, Laundry & Dry Cleaning, ISD / STD Booths, Cable TV Networks, Beauty Parlor and Crèche, etc.

ELIGIBILITY

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Unit with investment in fixed assets excluding the cost of land and building not exceeding Rs 10 lakh, irrespective of location of the unit.

NATURE OF LIMIT

Need based.

MARGIN For Term Loan

(i) Upto Rs 25000/- Nil

(ii) Above Rs 25000/- Upto Rs 5 lakh 15%

(iii) Above Rs 5 lakh 20%

(iv)For old machinery minimum life of 5 years. In case of old Gen-set it would not be older than 3 years

25%

 For Working Capital

For Stock

(v) Upto Rs 25000/- Nil

(vi) Above Rs 25000/- upto Rs 5 lakh 15%

(vii) Above Rs 5 lakh 20%

For Book Debts

(viii) Upto Rs 5 lakh 20%

(ix) Above Rs 5 lakh 25% 

* FOR WOMEN BENEFICIARIES MARGIN REQUIRMENT IS ONLY 10%. Repayament5 to 7 years (for term loan) excluding moratorium period depending upon the earning capacity of the unit.

Collateral securityNo collateral security for loans upto Rs 10 lakh. For loans in excess of Rs 10 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In other cases collateral security or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine. No Collateral Security & third party guarantee for Loans upto Rs 100 lakh covered under Credit Guarantee Fund Trust for Micro and Small industries Scheme (CGTMSE).

3. PNB Kushal Udyami

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LOANS TO CRAFTSMEN & TECHNICALLY QUALIFIED ENTREPRENEURS To set up Micro and Small units, for purchase of fixed assets and meeting working capital needs.

Purpose

For acquisition of fixed assets (plant, machinery, land, building, tools, etc.)

For working capital requirements within the ceiling limits of Rs 3 lakh / Rs 5 lakh as the case may be.

 Eligibility

Technically qualified entrepreneurs and / or those having adequate technical practical experience in a particular field of technology.; Margin

For Term Loan

(i) Upto Rs 2 lakh Nil

(ii) Above Rs 2 lakh Upto Rs 3 lakh 10%

(iii) Above Rs 3 lakh Upto Rs 4 lakh 15%

(iv) Above Rs 4 lakh Upto Rs 5 lakh 20% Amount of loan Maximum Rs 3 lakh in case of individuals and Rs 5 lakh in case of partnership firms or joint stock companies. (In case of ancillary unit or industry with joint financing of SF / Bank higher assistance of Rs 5 lakh for individual and Rs 10 lakh for groups). Repayment5 to 7 years for term loan including moratorium period.  Collateral SecurityNo collateral security for loans upto Rs 10 lakh. For loans in excess of Rs 10 lakh and upto Rs 25 lakh no collateral security required, if the unit is having good track record & financial position. In other cases collateral security or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine. Location of projectPreferably the unit should be set up in an industrial estate where there is provision for suitable accommodation with the requisite facilities such as water, power, transport and communication. Project set up in industrial areas, zones or sites specifically declared as undeveloped by the State Government, concerned agencies / departments will be considered.The required accommodation should, as far as possible, be acquired on rental or hire-purchase basis. This will ensure that the investment in fixed assets is made for purchase of the required machinery and equipment, thereby enabling the entrepreneurs to make the best use of our financial assistance.

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4. PNB Garrage Yogana For technology upgradation of Automobile Garrage (Workshops)  PurposeTo meet the expenditure on:

Purchase of capital equipment, need based civil works and acquisition of additional land; Acquisition of technical know-how, designs, drawings; Upgrading process technology and products with thrust on quality improvement; Cost of Technology Quality Management (TQM) and acquisition of ISO 9000 series

certification; and

Preliminary and pre-operative expenses to the extent of 10% of project cost. Project outlay

The project outlay on fixed assets already created & items indicated above should not exceed Rs 10 lakh (as per the investment in equipments ceiling of service industries under Micro Enterprises). Eligibility

Small Scale Service Units including those which go in for modernisation / technology upgradation;

The outlay on land and building should not exceed 25% of the outlay on modernisation / technology upgradation programme;

The units should be in operational for at least one year and not be default to bank.Salient features

Need based extent of the loan Minimum promoter’s contribution required is 10% of the cost of the project. Repayment period - of 5 to 7 years (excluding moratorium period).

Working capital facilities will be of continuing nature subject to review / renewal every year.Collateral Security

No Collateral Security & Third Party Guarantee for Loans upto Rs.100 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).

In other cases, collateral security and / or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine.

 

5. Loans For Setting Up Industrial Estates Financing Cooperative, Partnership Firms & Joint Stock Companices Of Entrepreneurs Societies For Establishing Industrial Estates To purchase land and construction of factory sheds. EligibilityCooperative Societies, partnership firms and joint stock companies who have sponsored projects for

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establishing economically viable industrial estates and have the necessary approval of State Directorate of Industries and local authorities, would be assisted under the Scheme. Requirements to be fulfilled

1. The State Government should have declared the area on which these constructions have to be made as an industrial area.

2. The plan etc. should be approved by the authorities like Municipal Corporation, Industries Department, Factories Inspector etc. or any other statutory authority constituted by the State / Central Govt.

3. Title of the land is verified by Bank’s Legal Advisor as clear marketable and free from any encumbrances.

 Margin 25% of the cost of (i) acquisition of land; (ii) development of land and (iii) construction of shed / buildings shall have to be borne by the sponsors. Amount of loan - Need based. Repayment- Maximum 10 years. MEDIUM TERM LOANS FOR LAND & INDUSTRIAL SHEDS TO TECHNICAL ENTREPRENEURS The Bank also provides Credit assistance to individual technical entrepreneurs for purchase of land and construction of work shed for their proposed industry. Margin - 25% Repayment - 8 years Security Valid mortgage of land, buildings and other immovable assets of the entrepreneurs (existing as well as to be created at a later date). The borrowers should agree that during the period of the loan they would not, without the written consent of the bank, create in any manner further charge, lien or other encumbrances on the security given to the bank in respect of such advances or create any interest in such security in favour of any party or person. 

6. PNB Vikas Udyami

 PurposeFor acquiring ISO-9000 certification, Expenses on consultancy, documentation, audit certification fees, equipment and calibrating instruments required would be taken into account for determining loan requirement. EligibilityExisting SSI units (Micro & Small Enterprises) that have been in operation for a period of at least

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four years; have earned profit and / or declared dividend during the preceding two financial years; not be in default to any institution / banks in payment of their dues, and have been exporting their products, directly or indirectly or have plans to manufacture products for exports. Loan amountNeed based, by way of term loan. Margin15% of the project cost. (Margin for women beneficiaries 10%) RepaymentNot exceeding 5 years including moratorium period upto 1 year. Collateral SecurityNo Collateral Security & Third Party Guarantee for Loans upto Rs.100 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).In other cases, collateral security or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine. 

7. PNB SME Sahyog Scheme Financial Assistance to meet unforeseen expenditure of SME Enterprises having good track record. Purpose For contingencies like additional purchase of raw material including packing material/ handling charges for the execution of bulk orders, taking part in national / international trade exhibition, payment of consultancy charges, machinery repair, labour payments, etc. Eligibility Existing borrowers whose accounts have been classified as standard assets for the last three consecutive financial years and are enjoying credit limits above Rs. 20 lakh.For term loans & working capital of above Rs. 20 lakh, the threshold credit rating should be ‘BB’ (on the closing of previous financial year). Credit risk rating for any of the earlier years should not be below “B”. Extent of loan The facility is extended by way of clean cash credit limit. Special credit limit for an amount equal to 20% of the aggregate working capital limits (i.e. fund based and non fund based separately), subject to a maximum of Rs. 25 lakh. Assessment A simple assessment will be made by computing 20% of the aggregate cash credit working capital limits (i.e. limits against stock and bills put together) or Rs.25 lakh which ever is lower. Repayment 

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The borrowers are free to utilize the facility upto 12 times in a year. Each amount of withdrawal is repayable within maximum period of two months and there should be a gap of 15 days between the date of complete repayment of outstanding and the next withdrawal. Security Collateral security to be obtained as per bank’s extant guidelines. The charge on available security by way of primary/ collateral to the existing sanctioned limits will be extended to cover the clean cash credit limit. 

8. Pnb Artisan Credit Card   (Simplified Loan delivery mechanism to provide hassle free financial support to Artisans) Objective 

To provide hassle free financial support to Artisans

To make credit delivery simple and easy  Security Secured by Hypothecation of stocks in trade, receivables, machinery, office equipment, etc. No collateral security required Repayment Term loans will be repayable in monthly / quarterly installments within 3 to 5 years depending upto the project. Nature Of Limit Term Loan & Cash Credit Limit 

Margin 

  Extent of Limit Margin

(i) Upto Rs. 2.00,000 Nil

 

Validity Card is valid for three years Nature of limit Term loan and working capital (both upto Rs. 2 lakh)

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 Eligibility 

All artisans (Existing & New) involved in production / manufacturing process (and otherwise eligible for credit facilities for carrying out the proposed activities under any of the existing bank schemes).

Preference is given to artisans registered with Development Commissioner (Handicrafts). Thrust on financing in clusters of artisans and artisans who have joined to form Self Held

Groups (SHGs). All existing / new artisan borrowers of the bank enjoying credit facilities upto Rs. 2 lakh and

having satisfactory dealings with the bank.

Beneficiaries of other Government sponsored loan schemes are not eligible. Repayment Term loans will be repayable in monthly / quarterly installments within 3 to 5 years depending upto the project. Collateral Security No Collateral security required. 

Top^9. Pnb Laghu Udyami Credit Card - A Simplified Loan Delivery Mechanism Objective: To provide hassle free financial support to Small Business units, Retail Traders, Artisans, Village Industries, Micro & Small Enterprises (Manufacturing & Services) & Tiny Units, Professionals and Self Employed Persons, etc. Eligibility Borrowers belonging to aforesaid categories enjoying Cash Credit limits upto Rs. 10 lakh and having satisfactory dealings with the bank for the last three years. Loan Amount Extent Of Limit- Maximum upto Rs. 10 lakhNature Of Limit- Cash Credit Assessment Of Credit Card Limit Small business, retail traders, etc upto 20% of the annual turnoverProfessional and self-employed persons 50% of their gross annual income as per Income Tax ReturnMicro & Small Enterprises units as per simplified turnover method. Margin 

  Extent of Limit Margin

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(i) Upto Rs.2.00 lakh Nil

(ii) Above Rs.2.00 lakh upto Rs. 5.00 lakh 15%

(ii) Above Rs 5.00 lakh 20% Security Hypothecation of stock in trade, receivable, machinery, office equipment, etc. Collateral Security (For Micro & Small Enterprises ) No Collateral Security & Third Party Guarantee for Loans upto Rs.100 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).In other cases, collateral security or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine.

Scheme For Financing Professionally Qualified Medical Practitioners :  Eligibility 1. Individual (Any Professionally Qualified Medical Practitioner) including Dentist.

2. Doctors who are in service subject to total deductions not exceeding 50% of net salary/income.

 Purpose 

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i) To finance for purchase of various surgical, X-Ray, CT Scan etc. and other Electro Medical equipments including other sophisticated equipments, Operation Theatre equipments, Air Conditioners, Generators, Refrigerators, Ambulances, Personal Computer and accessories, software necessary for diagnostic purposes and UPS systems or equipments, machineries and any other items to start Clinics/Nursing Homes/Medical Centres.

ii)  Finance can also be allowed for purchase, construction, addition, alteration, renovation, furnishing of Clinics / Nursing Home / Medical Centres and cost of medicines if any to be procured. Extent of loanMinimum:  Rs.1 Lakh.  Maximum:   Need Based. Margin 

15% to 30% 

  Type of facility 

Term Loan Overdraft

However, the facility of Overdraft be allowed by Circle Head. RepaymentTerm Loan Maximum 7 years in equal Monthly/Quarterly installments inclusive of a maximum moratorium period of 6 months. However, a higher moratorium period of 18 months may be allowed in case of construction of nursing home/ clinic/ medical centre.

Overdraft: The loan is to be repaid in maximum 7 years, through a monthly reducing Drawing Power (DP), the reduction to commence from the month following the month upto which moratorium period, if any, has been allowed. SecurityTerm Loan & Overdraft: Hypothecation of equipments / items purchased.

Collateral: Loans upto Rs. 10 Lakh: No Collateral & Third Party Guarantee. To be covered under Credit Guarantee Scheme of CGTMSE.

 

Proposals upto 100 Lakh which are eligible under credit guarantee scheme of CGTMSE & covered under CGTMSE no Collateral & third Party will be taken.

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For loans above Rs.10 Lakh Upto Rs.20 Lakh (not covered under Credit   Guarantee Scheme of CGTMSE.) :Third party Guarantee only. Upfront & Documentation ChargesUpfront charges:   0.70% of the loan amount+ Service Tax. Documentation charges (One Time):Upto Rs. 2 lakh:   Rs. 270/- + Service TaxOver  Rs.  2 lakh:  Rs.450/-  + Service  Tax

 

Pnb Gramin Chikitsak”- Scheme For Financing Of Qualified Medical Practitioners In Rural Areas  Eligibility 

Qualified registered medical practicing with minimum qualification of MBBS in the capacity of individual/ Pvt. Ltd. Co./ Partnership Firms/Trust having all the Directors/Partners engaged in the same profession, i.e. Doctors.

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Purpose

i)    To set up Reproductive and Child Health Clinics in urban, semi-urban & rural areas   in a rented premises.

ii)   To finance purchase of various surgical, X-Ray, CT Scan etc. and other Electro Medical equipments, Operation Theatre equipments, Air Conditioners, Generators, Refrigerators, Ambulances, Personal Computer and accessories, software necessary for diagnostic purposes and UPS systems and for purchase of equipments, machineries and any other items to start Clinics/Nursing Homes/Medical Centres.

iii)  Loan can also be allowed for purchase, construction, addition, alteration, renovation, furnishing of Clinics / Nursing Home / Medical Centres at rural centres. Amount of Loan

 Need Based Margin 

10%  to 35% Rate of Interest OD/TL: (As applicable for Housing loan for a repayment period of 10 years under fixed option)

 Nature of Loan 

Term Loan Overdraft.

  However, the facility of Overdraft be allowed by Circle Head. Repayment Term Loan: maximum period of 10 years in equal Monthly/Quarterly installments (inclusive of a maximum moratorium period of 12 months) However, in case of construction of nursing home/ clinic/ medical centre, a higher moratorium period of 18 months may be allowed.

Overdraft: The loan is to be repaid in maximum 120 months, through a monthly reducing Drawing Power (DP), the reduction to commence from the month following the month upto which moratorium period, if any, has been allowed

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Scheme for Financing Service Sector – PNB Super Trade

Scheme envisages to meet the working capital requirements of the Service Sector including trading, business enterprises and professionals & self-employed

1. EligibilityAll MSE units in Service Sector including traders, professionals & self-employed etc. with satisfactory experience of business and having financial statements of at least two preceding financial years.

2. PurposeFinancing of stock and book debts (not older than four months)

3. Nature of loan:Cash Credit

4. Extent of loan:- Need basedMinimum – Above Rs.10 lakhMaximum – Rs.200 lakh

In case working capital limit is sanctioned by way of hypothecation of stocks and book debts, the CC(BD) limit will not exceed 50% of the total limit sanctioned.

In case the working capital limit is sanctioned only against hypothecation of book debts then the maximum limit shall be Rs. 100 Lakh only.

5. Margin:25%

6. Securityi) Primary Security- Hypothecation of stocks and book debts.ii) Collateral Security- Minimum 150% (Realizable Value) of the loan amount in the form of mortgage of immovable property and/ or other liquid security duly charged to the bank.

7. RepaymentCash Credit limits shall be sanctioned for a period of one year and shall be subject to review / renewal annually.

Loan Against Future Lease Rentals   PNB has introduced a scheme for property owners having their properties situated in Metro/Urban/ Semi Urban/rural centres and who have let out such properties.  Eligibility   Property Owners having their properties situated in metro, urban, semi-urban and rural areas who have leased out such properties to the following:

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(i) Public Sector Undertakings / Govt. / Semi / State Govt. & reputed corporates, Banks, Financial Institutions, Insurance Companies and Multinational Companies.

(ii) Reputed private schools/colleges (approved by/affiliated to State Board/University/ AICTE/ any other Govt. body).

(iii) Reputed private hospitals/ nursing homes.

(iv) Franchisees/dealers/distributors of reputed corporates 

Nature & Extent of loan  

Remaining period of the lease

Quantum of Loan (Maximum upto following %age of the future lease rentals receivable for unexpired period of lease)

Upto 3 years 80

Beyond 3 years & upto 5 years

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Beyond 5 years & Upto 7 years

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Beyond 7 years & Upto 10 years

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The amount of lease rentals is to be considered net of TDS, service tax or any other tax, wherever applicable, for arriving at the eligible amount.  Security  

Assignment of lease rentals.

Equitable mortgage of the leased property or any other immovable property:- o In case of loans having repayment period upto 5 years, the amount of loan should not

exceed the value of the property mortgaged.

o In case of loans having repayment period beyond 5 years, the amount of loan should not exceed 75% of the value of the property mortgaged.

In case of Company, personal guarantee of promoter directors.

  Repayment  

Maximum 120 monthly installments or remaining period of lease whichever is less.  Upfront Fee (Term Loan & Overdraft on Reducing DP Basis)   0.70% of the loan amount + Service Tax & Education Cess 

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Documentation Charges  

Rs.270/- upto Rs.2 Lac + Service Tax & Education Cess

Rs.450/- over Rs.2 Lac + Service Tax & Education Cess

AGRICULTURE CREDIT SCHEME

  Scheme For Financing Under Pnb Krishi Card (Kisan Credit Card) Scheme For Package Loan To Farmers (Pnb Kisan Sampuran Rin Yojna) Pnb Kisan Ichchha Purti Yojana Credit Against   National Savings Certificates, Fixed Deposit Receipts And Kisan Vikas Patra

To Farmers Credit Against   Gold Ornaments/Jewellery to Farmers

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Produce (Marketing) Loan Scheme Farm Mechanisation Scheme - Financing For Purchase Of Farm Machinery And

Repair/Renovation Of Tractors And Powertillers Scheme For Financing Farmers For Purchase Of Second Hand Tractors Scheme For Financing Self-propelled Combine Harvesters Scheme For Financing Farmers For Purchase Of Trucks And Other Transport Vehicles Scheme For Financing Minor Irrigation Scheme For Financing Development Of Horticulture (Fruits, Flowers & Vegetables) And

Plantation Crops Scheme For Financing Forestry Development Programmes Scheme For Financing Agricultural Graduates For Setting Up Of Agri-clinics And Agri-

business Centres (ACABC) Scheme For Financing Farmers For Purchase Of Land For Agricultural Purpose Scheme For Financial Assistance To Agricultural Graduates For Purchase Of Land And

Undertaking Agricultural Activities Scheme For Financing Mushroom Cultivation Scheme For Financing Mushroom Spawn Production Scheme For Financing Setting Up Of Biogas Units Scheme For Financing Commission Agents/Arhtiyas/Dealers, Commission Agents/Arhtiyas

& Dealers Engaged In Distribution Of Cattle Feed, Poultry Feed, Dairy Feed, Etc., Against Their Paid-up Stock

Scheme For Financing Poultry Farming Scheme For Financing Dairy Development Programmes Dairy Vikas Card Scheme (Implemented In Select States) Scheme For Financing Fisheries Development Scheme For Financing Sheep/Goat Breeding/Rearing Activities Scheme For Financing Piggery Development Scheme For Financing Purchase Of Animal Drawn Vehicles i.e., Carts And Draft Animals Scheme For Financing Apiculture (Bee-keeping) Scheme For Financing Sericulture Scheme For Financing Kitchen Gardening Scheme For Financing Green Houses Pnb Kalyani Card Scheme Nb General Credit Card(GCC) PNB Krishak Sathi Scheme(KSS) Scheme for Financing Solar Energy Lighting System (SELS)

  

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RESEARCH METHODOLOGY

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CONCLUSION

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With regard to banking products and services, consumers respond atdifferent rates, depending on the consumer’s characteristics. Hence IPNB should try to bring their new product and services to the attentionof potential early adopters. 1.Due to the intense competition in the financial market, PNB should adopt better strategies to attract more customers.

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REFERENCE

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