Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.
About the scheme…
PNB Mahila Udyami Scheme was launched by Punjab National Bank (PNB) to empower and encourage women engaged in income generation activities either in manufacturing, service, trading, small business etc.
How is it being implemented?
Under PNB Mahila Udyami Scheme, direct financial assistance, in the form of loans, is given to
- Women entrepreneurs engaged in manufacturing, service, trading, small business etc.
What’s on offer?
I. Product:
- Term loans
- Working capital in the form of overdraft
- Ticket size upto ₹10 Lakhs
II. Purpose:
- Acquisition of fixed assets
- Working capital requirements
- For more information around what’s covered under working capital requirements under this scheme – towards meeting day to day requirements, or for setting up new unit or enterprise or for expansion or modernization of existing unit, please contact PNB via means mentioned below
III. Borrower Type
- Individuals, Sole Proprietorship, Partnership, Limited Liability Partnerships (LLP), Limited Liability Company (LLC), Private Limited Company, Public Limited Company
IV. Security or Collateral or Guarantee or Insurance
- Primary security: personal security of borrower or assets created out of Bank’s finance
- Collateral security: nil, to be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for eligible activities
- For information around requirement of guarantee or insurance, please contact PNB via means mentioned below
V. Interest Rate
- For loans upto ₹50K: Repo Linked Lending Rate (RLLR) + 0.15% – Interest concession of 0.50%
- For loans above ₹50K and upto ₹10 Lakhs: RLLR + 1.40% – Interest concession of 0.50% or 0.25% depending upon whether the women entrepreneur classifies as priority sector or non-priority sector borrower
- Per RBI, loans upto ₹1 lakh per borrower to Individual women beneficiaries is classified as priority sector
- PNB’s latest RLLR stands at 9.0%
- Thus, interest rate ranges between 8.65% – 10.15%
VI. Processing fee
- For loans upto ₹5 Lakhs: Nil
- Expenses other than processing or upfront fee (i.e. CIC/ CERSAI/ Insurance etc.) shall be borne by the borrower
- For term loans above ₹5 Lakhs and upto ₹10 Lakhs: 0.625%
- Further concession of 20% may become applicable for applications received through psbloansin59minutes.com
- For working capital loans above ₹5 Lakhs and upto ₹10 Lakhs: 0.5%
- This is a Unified Processing Fee and includes all type of charges (i.e. CERSAI/Inspection/ Documentation/ NEC/ Valuation etc.). However Insurance/ State specific Stamp Duty charges on actual basis shall be borne by the borrower
VII. Margin money requirement
- For loans upto ₹2 Lakhs: Nil
- For loans above ₹2 Lakhs and upto ₹5 Lakhs: 20%
- For loans above ₹5 Lakhs and upto ₹10 Lakhs: 25%
VIII. Tenure, Repayments & Pre-Closures
- For term loans: 3 to 5 years with maximum moratorium period of 3- 6 months depending upon type of activity and income generation
- For overdraft facility: 3 years. However, the account will be reviewed on yearly basis and be renewed every 3 years
- Nil pre-payment or fore closure charges for Micro- enterprise and Small-enterprise where investment in Plant & Machinery or Equipment does not exceed ₹10 Crores and turnover does not exceed ₹50 Crores. Note that definition of Micro-enterprise or Small- enterprise per MSMED Act has been changed since July 1, 2020. Please click here for concise details
IX. Turnaround Time
- For information around this, please contact PNB via means mentioned below
Interested? Read ahead to check your eligibility….
I. Do you own your business?
OR
In case of Partnerships, Limited Liability Partnership, Limited Liability Company, Private Limited Company or Public Limited Company, do you individually or jointly with other women, hold not less than 50%, as partners or shareholders?
II. Is it true that you have not been a defaulter to any Bank or Financial Institution?
III. Is it true that you have not availed a loan facility under government sponsored scheme?
If your answers to the questions above are an emphatic YES, you are all set to avail loan under PNB Mahila Udyami Scheme!
Additionally, if your answer to the question below is also a YES, you would be given a preference under PNB Mahila Udyami Scheme!
I. Can you identity yourself as a ST/SC/BPL Card Holder?
OR
Have you trained in Rural Self Employment Training Institutes (R-SETIs)/ Skill Development Institutions etc. or any other training institute?
And if your answer to the question below is also a YES, you would be eligible for concessions in interest rates under PNB Mahila Udyami Scheme!
I. Do you individually or jointly with other women, hold not less than 51%, as owners or partners or shareholders?
So…how big is this scheme and what has been done so far?
I. Details for PNB Mahila Udyami Scheme don’t seem to be available in the public domain
II. However, PNB’s total outstanding loans to women beneficiaries was ₹77,933 Crores as on March 31, 2022. This constituted 11.65% of the Bank’s Adjusted Net Bank Credit
So, now, how should you go about it?
I. For submitting application:
- Online via Bank’s website, register and apply online here after selecting “MSME Loan”
- Online via psbloansin59minutes.com, register and apply online here OR here
- Visit PNB’s nearest branch. Find one here
II. For information on,
- For application form and indicative list of documentation that will be required, please check here
III. For any queries,
- Please contact PNB Customer Care Division on:
- Toll Free Numbers 1800 180 2222 or 1800 103 2222
- Tolled Number 0120 2490000
- Landline 011 28044907
OR
- E-mail care@pnb.co.in
Go on then…and do spread the word!
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