Working Capital Of PNB

I want to know the Working capital limits of the Scheme For Financing Stocks of Punjab National Bank PNB so can you tell me?

[Shaleen]

Punjab National Bank is an Indian multinational banking and financial services company. The Bank was established in 1894. It is a state-owned corporation based in New Delhi, India. Punjab National Bank is one of the Big Four banks of India.

Scheme for Financing Stocks / Receivables not older than 4 months etc credit is provided for:

Financing of stock in trade, book debts (not older than 4 months) and other assets to be used in the trade

Nature & Extent Of Loan-

Working Capital/ Term Loan (fund based & non-fund based) - Need Based

Margin Requirements-

Working capital limits:-

Against Stocks : 30% to 40%,
Against Receivables : 40%

Repayment-

Working capital Term Loan (WCTL) is repayable in equal monthly/quarterly installments within a period of 3 to 5 years.

Commencement of repayment be linked with generation of revenue by the business within a maximum period of 3 months of 1st disbursement.

Cash Credit - Working capital limits shall be sanctioned for a period of one year and shall be renewed/ reviewed annually

Eligibility-

Traders, who are individuals, firms, HUFs, cooperative societies registered under any law relating to cooperative societies and companies etc.
Promoters /co-obligants must have existing satisfactory relationship of minimum at least six months with the Bank or at least for one year with any other bank /FI.

Traders should comply with applicable statutory requirements, such as State/Central Sales Tax Registration Certificate, Licence under Shops & Commercial Establishment Act, Registration with Excise Department, etc.

Advances against goods or any other item prohibited by RBI/Govt. from time to time will not be covered under this scheme.