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Punjab National Bank (PNB), one of India’s oldest public sector banks, provides business loans to startups, entrepreneurs, as well as self-employed professionals with the aim to support their businesses’ capital requirements or expand business operations. The business loan interest rate offered by PNB depends on the applicant’s profile and business requirements, along with the applicant’s financial history, CIBIL score, and loan repayment history, etc.
Punjab National Bank Business Loan is one of the most sought-after loan offerings for various different business entities owing to the high disbursal amount, the simplified application process, nominal interest rates, and flexible loan tenures. These loans have low processing times and competitive terms and are tailor-made to suit the needs of each borrower. These loans are offered for various purposes, including business expansion, working capital requirements, hiring staff, purchasing machinery, and purchasing commercial property. In this piece, we will take a look at this business loan in detail.
Punjab National Bank offers business loans of amounts ranging from Rs. 5 lakhs to Rs. 15 lakhs. These loans are offered to both businesses and self-employed applicants. One can obtain this loan at interest rates starting at 12.60% per annum. This loan can be obtained for flexible loan tenures ranging from 12 months to 60 months. This is a fixed-interest rate loan, which means that the interest rate remains unchanged throughout the tenure of the loan. The borrower can easily repay the loan in easy monthly instalments via PDC, ECS, or auto-debit.
Given below are some of the features and benefits of Punjab National Bank Business Loan:
Any applicant who is a citizen of India having substantial ability to repay the loan is eligible for a business loan from Punjab National Bank. Given below are some of the other parameters that an applicant must fulfil to obtain a business loan from Punjab National Bank:
The table given below shows the various different types of fees and charges associated with a Punjab National Bank Business Loan:
| Details | Charges |
| Interest Rates | Starting at 12.60% per annum for loan amounts below Rs. 2 lakhs, and 15.60% per annum for loan amounts above Rs. 2 lakhs |
| Prepayment Charges | There is a lock-in period of 6 months. Post 6 months, there is a foreclosure charge of 2% of the outstanding amount |
| No due/No objection Certificate | Rs. 150 per certificate |
| Fees for altering terms and conditions | 0.02% of loan amount, subject to a minimum of Rs. 1000 and maximum Rs. 5 lakhs |
Punjab National Bank offers a suite of business loan options to its customers. Every option has a different eligibility and documentation criteria. Given below are the common set of documents required for any of the business loan schemes:
The Punjab National Bank Business Loan can be availed at interest rates starting at 12.60% per annum for loan amounts below Rs. 2 lakhs, and at 15.60% per annum for loan amounts over Rs. 2 lakhs.
Given below are some of the factors that affect the interest rates for your Punjab National Bank Business Loan:
The foremost factor affecting the interest rate for your business loan is the nature of your business. The nature of your business is an indication of the kind of business activity that you undertake. The business should present a positive outlook, and the place of business should not be on the blacklist. While determining your business loan interest rate, lenders assess the previous nature of your business to see how it functions and to determine if it is profit or loss-making.
A credit score is a 3-digit number that depicts the applicant’s ability to repay the loan. This score usually ranges from 300 to 900. Most lenders and banks in the country consider the applicant’s score before approving the loan terms. A credit score of 750 or above is deemed to be a healthy credit score. A high credit score has a good influence on loan providers. If you have a high score, you are more likely to obtain a loan at lower interest rates. If you have a poor credit score, your loan application might get rejected or be granted a higher interest rate.
The experience of the business is taken into consideration since a well-established business is considered to be more secure. If your business has been in existence for a significant period of time, lenders are more likely to grant a loan at lower interest rates. A high-interest rate is charged for established businesses only if there has been a documented history of non-payment or default.
Each lender in the country determines the interest rate for your business loan based on the turnover of your business. If your business has a high annual turnover, then you are likely to be granted a lower interest rate. Inversely, if your business has a low turnover, you will be granted a higher interest rate. This is because most lenders will view your business to be a credit risk.
Most lenders and loan providers in the country assess the business’s monthly, quarterly, and yearly revenue before determining the interest rate. The interest rate applicable is determined based on the revenue of the business. If the revenue is not up to the lender’s requirements, then your loan may be sanctioned at a higher interest rate.
Another major factor affecting the interest rate for your Punjab National Bank Business Loan is the previous repayment track record. If you have a good repayment history, you may be granted a loan at low-interest rates. Regardless of how good your credit score is, if you do not have a good repayment history, the lender may provide the loan at high-interest rates.
Given below is the formula to calculate the EMI for a business loan from Punjab National Bank:
E= P*r*(1+r)n/(1+r)n-1
In this formula,
The table given below shows how the business loan offered by Punjab National Bank compares to other loan offers in the market:
| Bank/NBFC | Interest Rate |
| HDFC Bank | 10.00% – 22.50% p.a. |
| Hero FinCorp | Up to 26% p.a. |
| FlexiLoans | 1% per month onwards |
| NeoGrowth Finance | 19% – 24% p.a. |
| ZipLoan | 1% – 1.5% per month (Flat ROI) |
| Tata Capital Finance | 19% p.a. onwards |
| Axis Bank | 14.65% – 18.90% p.a. |
| Lendingkart Finance | 1.5% – 2% per month |
| IDFC First Bank | 14.50% onwards |
| Indifi Finance | 1.5% per month onwards |
| Kotak Mahindra Bank | 16% – 19.99% p.a. |
| ICICI Bank | 17% p.a. onwards |
| Fullerton Finance | 17% – 21% p.a. |
| RBL Bank | 17.50% – 25% p.a. |
| Bajaj Finserv | 15% – 25% p.a. |
In case you have any doubts or queries regarding a business loan from Punjab National Bank, you can get in touch with the bank using the following methods:
| Toll-free Numbers | 1800-180-2222 1800-103-2222 |
| Tolled Number | 0120-2490000 |
| Landline Number | 011-28044907 |
| Email ID | care@pnb.co.in |
The interest rate for a business loan from Punjab National Bank starts at 12.60% per annum.
Some of the benefits of a business loan from Punjab National Bank are quick loan processing, swift loan disbursal, flexible tenure, and high loan amount.
Yes, Punjab National Bank has fixed interest rates for its business loans starting at 12.60% per annum.
Yes, PNB checks for the applicant's credit score while processing the business loan. The bank usually prefers applicant’s with scores over 650.