Looking for a MSME loan for your business from Punjab & Sind Bank?

You have landed at the right place. This page contains all the information you will need on Punjab & Sind Bank’s SME Liquid Plus to buy office equipment, expand business, purchase machinery and so on.

Punjab & Sind Bank SME Liquid Plus

This loan helps businesses in the Small and Micro Enterprises (SME) sector meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies that fit the SME definition are eligible for this loan.

Features of SME Liquid Plus

Why this Loan?

  • This Punjab & Sind Bank Star SME Liquid Plus is meant for all types of businesses in the MSME sector who need financial assistance to meet their needs for purchasing equipment, machinery, research and development activities, etc.
  • The maximum loan amount sanctioned under this loan is Rs. 5 crore

Loan Amount

  • The minimum loan amount sanctioned under this loan is Rs. 10 lakh and the maximum loan amount sanctioned under this loan is Rs. 5 crore

Interest

  • Term Loans with Repayment Period upto 5 years: The interest rate applicable on this loan is defined as the sum of one-year Marginal Cost of Funds Based Lending Rate of Punjab & Sind Bank and a spread factor of 1.85%. Currently, the MCLR of PSB is 7.70% bringing the effective interest rate at 9.55%
  • Term Loans with Repayment Period above 5 years: The interest rate applicable on this loan is defined as the sum of one-year Marginal Cost of Funds Based Lending Rate of Punjab & Sind Bank and a spread factor of 2.05%. Currently, the MCLR of PSB is 7.70% bringing the effective interest rate at 9.75%
  • Overdraft Facility: The interest rate applicable on the overdraft facility is defined as the sum of one-year Marginal Cost of Funds Based Lending Rate of Punjab & Sind Bank and a spread factor of 1.60%. Currently, the MCLR of PSB is 7.70% bringing the effective interest rate at 9.30%

Repayment

  • Term Loan: This loan needs to be repaid within 7 years
  • Overdraft (Working Capital): This loan must be repaid within 12 months and can be renewed on an annual basis

Security Needed

  • The bank asks for equitable mortgage of land and/or building as collateral

Borrower’s Contribution to Total Cost (Margin Money)

  • The processing charges levied by the bank on this loan are not mentioned on the bank’s website. Please check with a bank representative to get more details

 Processing Charges

  • Term Loan: The bank charges up to 1% of the loan amount
  • Overdraft: The bank charges up to 0.50% of the loan amount and is payable at the time of annual renewal as well

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
  • A4 size copies of the aforementioned documents

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
  • All A4 size copies of the aforementioned documents

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
  • All A4 size copies of the aforementioned documents

Reference Facts

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