Looking for a Business Loan for your working capital and capital expenditure needs from Punjab & Sind Bank?

Get all the information you need on the Vyapar Loan from Punjab & Sind Bank below.

Punjab & Sind Bank Vyapar Loan

The Punjab & Sind Bank Working Capital Loan helps businesses finance their everyday operations such as for investment in current assets, purchase inventory, salary payments, power charges, etc. The bank extends the loan as a working capital loan, term loan and Overdraft (OD) facility depending on the needs of the borrower.

Features of Punjab & Sind Bank Working Capital Business Loan

Why this Loan?

  • This business loan can be taken for managing day-to-day operations related to running the business or for capital expenditure needs for business expansion. This a perfect loan scheme for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects
  • The maximum loan amount sanctioned under this loan scheme is Rs. 5 crore

Loan Amount

  • The minimum loan amount sanctioned under this loan is Rs. 5 lakh
  • The maximum loan amount sanctioned by PSB under this loan scheme is Rs. 5 crore

Interest

  • The interest rate for Punjab & Sind Bank Loans is defined as the sum of two factors, namely: one-year Marginal Cost of Funds based Lending Rate (MCLR) of PSB and Strategic Premium
  • Working Capital Loan: The interest rate for a working capital loan is defined as the sum of one-year MCLR + 2.25%. As of February 2020, the one-year MCLR of Punjab & Sind Bank is 8.45% bringing the effective interest rate at 10.70%
  • Term Loan: The interest rate for a term loan is defined as the sum of one-year MCLR + 2.75%. As of February 2020, the one-year MCLR of Punjab & Sind Bank is 8.45% bringing the effective interest rate at 11.20%
  • Overdraft Facility: The interest rate for OD facility is defined as the sum of one-year MCLR + 2.00%. As of February 2020, the one-year MCLR of Punjab & Sind Bank is 8.45% bringing the effective interest rate at 10.45%

Repayment & Moratorium

  • Working Loan: This loan must be repaid within 5 years including the moratorium period, subject to annual review
  • Term Loan: This loan must be repaid within 10 years including the moratorium period
  • Overdraft Facility: This loan is repayable on demand and the interest is recovered immediately when it is due
  • The moratorium period for this loan is up to 12 months

Security Needed

  • The bank asks for a personal guarantee of owners of the property, family of proprietors, partner or director for other corporate entities

Eligibility

  • Sole proprietors, partnership firms, Limited Liability Partnerships (LLPs), Public Limited Companies, Private Limited Companies, Trusts, Associations, Non-Banking Finance Companies (NBFC) and Registered Societies are eligible for this loan

Borrower’s Contribution to Total Cost (Margin Money)

  • This information is not available on the bank’s website as of April 2020, please get in touch with a bank representative to know more

Processing Charges

  • Term Loan and Working Capital Loan: The bank charges Rs 2,000 or 1% of the total loan, whichever is higher
  • Overdraft (OD) Facility: The bank charges 0.50% of the limit sanctioned under this scheme. The processing charges on OD are collected at the time of sanction of the loan amount as well as at the time of each renewal

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • Punjab & Sind Bank Website: www.psbindia.com
  • Headquarters: New Delhi
  • Call Centre Toll-Free Number: 1800 419 8300