Different COVID Loans for different customers.

COVID-19 loans for salaried employees, pensioners, MSMEs, Corporate and women Self-Help Group (SHG) borrowers.

Punjab National Bank COVID-19 Loans

As of May 2020, Punjab National Bank (PNB) is offering five loan schemes to help its existing SHG customers deal with the financial aftermath of COVID-19. They are:

  • Punjab National Bank SHG COVID Tatkal Sahayata Rin (for Self-Help Groups)
  • Punjab National Bank PNB Stand-by Line of Credit for MSMEs to Fund Temporary Liquidity Mismatch
  • Punjab National Bank COVID-19 Emergency Credit Line and Working Capital Re-assessment (for Corporate Customers)
  • Punjab National Bank PNB Aabhar Rin COVID-19 (for Retired Customers)
  • Punjab National Bank PNB Sahyog COVID-19 (for Retail Customers)

We give you important details of these COVID-19 loans below. If you need more details about a particular COVID-19 loan scheme, please get in touch with us at [email protected].

Punjab National Bank PNB Sahyog COVID-19 (for Retail Customers)

Punjab National Bank (PNB) offers the PNB Sahyog COVID-19 loan to its existing retail customers including housing loan borrowers to meet their personal or medical needs. Punjab National Bank offers a COVID-19 loan to salaried employees of government, semi-government and other public sector units and reputed MNCs, nursing homes, hospitals, schools, colleges, etc. maintaining a salary account with Punjab National Bank. PNB home loan borrowers are also eligible for this loan.

Features of PNB Sahyog COVID-19 – Personal Loan Scheme for Public

  • Quantum of Loan: The maximum loan amount sanctioned under the Punjab National Bank PNB Sahyog COVID-19 is Rs. 3 lakh for retail customers and Rs. 10 lakh for personal loan borrowers
  • Interest Rate: The interest rate applicable to this loan is Repo Linked Lending Rate (RLLR) + 2.00%. As of May 2020, the RLLR of PNB is 7.05% bringing the effective interest rate at 9.05%
  • Repayment Period: The loan must be repaid within 3 years. The loan must be repaid before the borrower turns 60 years of age
  • Eligibility: Confirmed/permanent salaried employees of government units, semi-government units and other public sector units maintaining a salary account with the bank are eligible for this loan. In the private sector, salaried employees of reputed MNCs, hospitals, nursing homes, colleges, schools maintaining a salary account with the bank are eligible for this loan. Existing home loan borrowers are also eligible for this loan. The minimum net take-home salary of the borrower must be Rs. 15,000 per month in metro and urban centres and Rs. 10,000 per month in semi-urban and rural centres
  • Security & Processing Charges: Nil
  • Validity: This medium-term loan scheme is only in force up to 30th June 2020

Punjab National Bank PNB Aabhar Rin COVID-19 (for Retired Customers)

Punjab National Bank offers this loan to regular pensioners, family pensioners and Punjab National Bank retired employees other than dismissed staff drawing pension through PNB. The loan amount sanctioned under this loan scheme depends on the last drawn pension of the borrower. This loan scheme is valid up to 30th June 2020.

Features of PNB Aabhar Rin COVID-19 – Personal Loan Scheme for Pensioners

  • Quantum of Loan: The maximum loan amount sanctioned under the Punjab National Bank PNB Aabhar Rin COVID-19 is six times the last drawn pension of the borrower subject to a maximum of Rs. 2 lakh
  • Interest Rate: The interest rate applicable to this loan is Repo Linked Lending Rate (RLLR) + 2.00%. As of May 2020, the RLLR of PNB is 7.05% bringing the effective interest rate at 9.05%
  • Repayment Period: The loan must be repaid within 3 years for borrowers who have already availed a PNB pension loan and 5 years for others
  • Eligibility: All types of pensioners drawing pension through PNB are eligible for this loan. The age of the pensioner at the end of the loan term must not exceed 75 years
  • Security: The bank asks for a guarantee of spouse or earning children of the borrower. A third-party guarantee with net means more than or equal to the loan amount is also be accepted by the bank
  • Margin: Nil
  • Processing Charges: The bank does not charge a processing fee on this loan

Punjab National Bank COVID-19 Emergency Credit Line and Working Capital Re-assessment (for Corporate Customers)

This loan helps PNB corporate borrowers get access to funds to deal with the aftermath of COVID-19 on their finances. Existing Punjab National Bank customers whose account is under standard SMA 0 and SMA 1 rating can avail this scheme.

Features of COVID-19 Emergency Credit Line and Working Capital Re-assessment for Corporate Borrowers

  • Quantum of Loan: The bank sanctions up to 10% of the existing fund-based working capital credit facilities under the Punjab National Bank COVID Emergency Credit Line scheme
  • Interest Rate & Repayment: As of May 2020, this information is not mentioned on the bank’s website. We suggest talking to a bank representative to get the details
  • Eligibility: Existing business customers enjoying working capital limits with the bank are eligible for this loan provided that the account is in the SMA 0 or SMA 1 category
  • Security: The bank asks for extension of charge on primary and collateral security on the existing loan
  • Margin & Processing Charges: Nil
  • Guarantee: Punjab National Bank asks for existing guarantee to be continued for this loan
  • Validity: This short-term loan scheme is only in force up to 30th June 2020

Punjab National Bank PNB Stand-by Line of Credit for MSMEs to Fund Temporary Liquidity Mismatch

This loan helps Micro, Small and Medium Enterprise (MSME) customers get access to funds to deal with the temporary liquidity mismatch as an aftermath of novel coronavirus (COVID-19) including delayed realisation of receivables, receipts of GST Inputs Tax credit and other business requirements.

Features of PNB Stand-by Line of Credit (for MSME Borrowers)

  • Quantum of Loan: The bank sanctions up to 25% of the existing fund-based working capital credit facilities up to a maximum of Rs. 1.25 crore under the Punjab National Bank PNB Stand-by Line of Credit for MSMEs scheme
  • Interest Rate: As of May 2020, the interest rate applicable to this loan is 0.50% above the sanctioned Cash Credit rate
  • Repayment Period: This loan must be repaid within 12 months
  • Eligibility: Existing MSME customers enjoying working capital limits up to Rs. 5 crore with the bank are eligible for this loan provided that the account has never slipped in default. For MSME customers with working capital limits above Rs. 5 crore, the loan may be sanctioned based on the external risk rating
  • Margin & Processing Charges: Nil
  • Security: The bank asks for an extension of charge on primary and collateral security on the existing loan as well as for the hypothecation of stocks and receivables

Punjab National Bank SHG COVID Tatkal Sahayata Rin (for Self-Help Groups)

This loan helps Self-Help Group (SHG) borrowers face the financial crisis arising out of COVID-19. SHGs directly or indirectly affected by COVID-19 because of job loss, business loss, income loss, etc. arising out of the lockdown and related reasons are eligible for this loan.

Features of SHG COVID Tatkal Sahayata Rin for Self-Help Groups

  • Quantum of Loan: This is a need-based loan and the maximum loan amount is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group under the Punjab National Bank SHG COVID Tatkal Sahayata Rin
  • Interest Rate: As of May 2020, the interest rate applicable to this loan is not mentioned on the bank’s website. We suggest calling the PNB customer care number for more information
  • Repayment Period: The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • Eligibility: Existing SHG customers of Punjab National Bank with a satisfactory track record who have also availed at least two doses of credit from the bank are eligible for this loan
  • Margin & Security: Nil

Documents Needed for Individuals (Salaried and Self-employed)

  • 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 for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

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

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 National Bank Website: www.pnbindia.in and www.netpnb.com (net banking)
  • Headquarters: Dwarka, New Delhi
  • Call Centre Toll-Free Number: 1800 180 2222, 1800 103 2222