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Finance for Traders |
Trading activity constitutes an important sector of the economy and trader is a key component of supply/distribution system. PNB extends credit to the retail and wholesale traders on attractive terms to meet their requirements of working capital and term loan.
Credit is provided for:
Financing stock in trade, book debts and other assets to be used in the trade.
Acquiring book/fixed assets like setting up of show room, ACs, delivery van, etc.
Eligibility
Traders who are individual firms, co-operative societies registered under any law relating to cooperative societies and companies and are dealing in those goods/commodities, advances against which are not prohibited by RBI/Government. Traders should comply with applicable statutory requirements.
Extent of Loan for Working Capital
Small Traders may be granted facility of term loan for working capital to extent of 60% to 80% of their requirement subject to maximum of Rs. 5 lac.
For other traders with a working capital requirement of above Rs. 5 lac, 60% to 80% of their requirement can be financed with no upper limit.
Term Loan: 60% to 80% of the cost of assets to be purchased. There is no upper limit.
Security
Hypothecation/pledge/mortgage of assets to be created with the amount of loan.
Mortgage of immovable property.
Negative lien on immovable property.
Suitable third party guarantee.
Rate of Interest
For advances upto Rs. 2 lac:
Working Capital: BPLR - 1% p.a.
Term Loans: BPLR - 1% + 0.5% (TP) p.a.*
For advances above Rs. 2 lac and upto Rs. 20 lac:
Working Capital: BPLR p.a.
Term Loans: BPLR + 0.5% (TP) p.a.*
For advances above Rs. 20 lac:
Based on Credit Risk Rating
BPLR to BPLR+ 2% + 0.5% (TP) p.a.*
Rate of Interest is subject to review
* TP is added in case of term loan repayable in 3 years & above
Repayment
Term loan for acquiring fixed assets is repayable in equated monthly/quarterly installments within a period of 5 to 7 years.
Term loan for working capital to small traders up to Rs.5 lac is repayable in equal monthly/quarterly installments within a period of 3 to 5 years.
Disbursement
For term loan for fixed assets and working capital, the loan amount shall be payable directly to the suppliers of the assets by draft/cash order.
For other working capital advances, cash credit limit shall be set up.
For any further information on the Scheme, please contact any of the PNB's office nearest to you.
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