|
Trading activity constitutes an important sector of the
economy and trader is a key component of supply/distribution
system. PNB extends credit to the retail and wholesale
traders on attractive terms to meet their requirements
of working capital and term loan.
Credit
is provided for:
 |
Financing
stock in trade, book debts and other assets to be
used in the trade. |
|
Acquiring
book/fixed assets like setting up of show room, ACs,
delivery van, etc. |
| Eligibility |
|
 |
Traders who are individual firms, co-operative societies registered under any law relating to cooperative societies and companies and are dealing in those goods/commodities, advances against which are not prohibited by RBI/Government. Traders should comply with applicable statutory requirements.
| Extent
of Loan for Working Capital |
|
|
|
Small
Traders may be granted facility of term loan for working
capital to extent of 60% to 80% of their requirement
subject to maximum of Rs. 5 lac. |
|
For
other traders with a working capital requirement of
above Rs. 5 lac, 60% to 80% of their requirement can
be financed with no upper limit. |
Term
Loan: 60% to 80% of the cost of assets to be purchased.
There is no upper limit.
| Security |
|
|
Hypothecation/pledge/mortgage
of assets to be created with the amount of loan.
|
Mortgage
of immovable property. |
|
Negative
lien on immovable property. |
|
Suitable
third party guarantee.
|
| Rate
of Interest |
|
|
For advances upto Rs. 2 lac:
|
Working
Capital:
BPLR - 1% p.a. |
|
Term
Loans:
BPLR - 1% + 0.5% (TP) p.a.*
|
For advances above Rs. 2 lac and upto Rs. 20 lac:
|
Working Capital: BPLR p.a. |
|
Term Loans: BPLR + 0.5% (TP) p.a.* |
For advances above Rs. 20 lac:
| |
Based on Credit Risk Rating |
|
BPLR to BPLR+ 2% + 0.5% (TP) p.a.* |
| Rate of Interest is subject to review |
| * TP is added in case of term loan repayable in 3 years & above |
| Repayment |
|
|
|
Term
loan for acquiring fixed assets is repayable in equated
monthly/quarterly installments within a period of
5 to 7 years. |
|
Term
loan for working capital to small traders up to Rs.5
lac is repayable in equal monthly/quarterly installments
within a period of 3 to 5 years. |
| Disbursement
|
|
|
|
For
term loan for fixed assets and working capital, the
loan amount shall be payable directly to the suppliers
of the assets by draft/cash order. |
|
For
other working capital advances, cash credit limit
shall be set up.
|
For
any further information on the Scheme, please contact
any of the PNB's office nearest to you. |
