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 updating, 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 article.
About this scheme…
MSME Prime Plus is a loan offering, with concessions & additional features, by Punjab National Bank (PNB) for MSMEs to meet their funding requirements.
This flagship Scheme was launched by PNB by consolidating four of their exisiting MSME schemes namely, PNB Udyog Scheme, PNB Seva Scheme, PNB Vyapar Scheme and PNB Contractor Scheme.
How is it being implemented?
Under this Scheme, financial assistance in the form of loans is given exclusively to,
- MSMEs undertaking manufacturing, services, agri-infrastructure, trading & contracting business
What’s on offer?
I. Product
- Term loan, Fund based & non-fund based working capital facility
- Ticket Size: ₹10 Lakhs to ₹100 Crores
II. Purpose:
- Acquisition of or investment in fixed assets
- Working capital requirements
III. Borrower Type:
- Individuals, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company, Trust, Societies, Co-operative Societies (registered and incorporated under applicable law) & any other legal entity
IV. Security or Collateral or Guarantee or Insurance
- Security: Hypothecation of assets i.e. stock, book debts, plant & machinery, equipment, vehicles etc. created out of Bank’s finance (present and future)
- Collateral: 30% to 75% depending upon MSME segment – Manufacturing, Services, Contractor & Traders
- Guarantee: Nil
- Insurance: For more information around this, please contact PNB via means mentioned below
V. Interest Rate
- Term loan & Fund based working capital facility
- Calculated as Repo Linked Lending Rate (RLLR) + Business Startegic Premium (BSP) + Additional Premium of 0.20 % to 1.50% depending upon the collateral coverage & riskiness of the borrower
- May range between 9.45% to 10.75% per annum
- Non-fund based working capital facility: 25% concession on applicable annual Letter of Credit (LC) & Bank Guarantee (BG) commission
- LC commission post concession may range between 0.81% to 1.80% per annum
- BG commission post concession may range between 1.20% to 2.25% per annum
VI. Processing Fee
- Term loan: 50% concession in upfront fee
- Post concession, may range between 0.50% to 0.75%
- Fund based & non-fund based working capital facility: 50% concession in processing fee
- Post concession, may range between 0.15% to 0.20%
- Additionally, applicable documentation charges will be levied
VII. Margin Money Requirement
- 15% to 25% depending upon the asset financed
VIII. Tenure, Repayments & Pre-Closures
- Tenure
- Term loan: upto 7 years (including moratorium period), beyond 7 years repayment shall be as per Bank’s extant guidelines
- Working capital facility: Shall be sanctioned for a period of one year & renewed on annual basis
- Repayments: EMIs. For more information around this, please contact PNB via means mentioned below
- Pre-payment & Foreclosure Charges: For more information around this, please contact PNB via means mentioned below
IX. Turnaround Time
- Term loan sanction
- Upto ₹50 Lakhs: upto max. 4 weeks
- Above ₹50 Lakhs upto ₹1 Crore: upto max. 5-6 weeks
- Above ₹1 Crore upto ₹100 Crores: upto max. 6-7 weeks
- Woking capital facility sanction
- Upto ₹25 Lakhs: not exceeding 14 working days
- Above ₹25 Lakhs: not exceeding 6 weeks
- Time limit starts from the date of submission of complete information or data by the applicant
X. Additional Features
- Auto increase of working capital limits for borrowers under this Scheme under PNB’s MSME Vishesh
- A pre-approved term loan facility which provides flexibility to good existing borrower under PNB’s MSME Open Term Loan
Interested? Read ahead to check your eligibility….
I. Are you or your business registered with Goods & Services Tax Network?
II. Does your businesss have a valid Udyam Registration?
If your answers to the questions above are an emphatic YES, you are all set to avail under PNB’s MSME Prime Plus Scheme!
So…how big is this scheme and what has been done so far?
As on 31st March, 2024, ₹40,693 Crores has been sanctioned to 26,776 accounts under this Scheme
So, now, how should you go about it?
I. For submitting application
OR
- Visit one of the 10,150 PNB branches nearest to you
II. For information on application form and documentation requirements, look under Application Forms for MSME Loan here
III. For any queries, please contact PNB via
- Toll Free Numbers: 1800 180 8888 (enquiry on loan product) OR 1800 330 3333 (for query on applying online) OR 1800 1800 OR 1800 2021
OR
- Tolled Number: 0120 2490000
OR
- E-mail: care@pnb.co.in
OR
- WhatsApp: Send Hi to 9264092640
OR
- Visit one of the 10,150 PNB branches nearest to you
Go on then…and do spread the word!
Sources:
1. About PNB’s MSME Prime Plus Scheme
2. PNB’s Annual Report 2023-24
3. PNB’s Latest Investor Presentation
