PNB SAMPATTI

PARAMETERS PARTICULARS
Purpose To provide hassle free credit to meet working capital
requirements / augment long-term margin / financing of fixed
assets related to business activity or for expansion of business.
The followings Business Entities are included under the scheme:

1. Trading 2. Manufacturing and Service Enterprises

(Both priority & Non priority).

Facility shall not be granted for:

 Term loan/ OD to builders/developers against mortgage of

unsold flats or projects under construction.
 Loans to Builders / Property dealers / Real estate agents/
Real estate/capital market/ investment in or for giving loans
to associate/group/sister concerns
 Term loan/ OD backed by mortgage of land and building of
Educational Institution and/or mortgage of properties of
promoters for setting up of Educational Institution or for
infrastructural development of existing institution.
 Term Loan/OD cannot be extended against property of
Nursing Homes/Hospitals, Orphanages, Old Age Homes or
any other Social Sector Infrastructure
 Facility will not be considered for other than business activity.
 Speculative & prohibited by Law purpose.
 Third Party property shall not be eligible for loan under the
scheme (except family members or close relatives). Close
relative means: Spouse, Father, Mother, Son, Un married
daughter, Brother, Sister, Brother’s wife, Parents of spouse.

Eligibility 1. Individual, Proprietorship, Registered Partnership Firms,

Private /Public Ltd., Companies/ LLPs / Societies / Trusts,
engaged in business activity.

2. Business Unit should comply with applicable statutory

requirements such as GST Registration, License under Shops
& Commercial Establishment Act, Registration with Excise
Department, trade license etc.

3. The cash generation and repaying capacity of above said

business establishment shall be the primary criteria for
considering loan under the scheme.
 4. The unit should have a Cash Profit in the normal course of
business in the immediate preceding year. However new
enterprises/Start Up Unit is also eligible to finance under the
Scheme.

5. The borrower shall not be in the defaulters list of the

Bank/caution list circulated by RBI/IBA/CIC/ECGC/ other
banks/FIs/Govt. of India from time to time.

6. Business entities dealing in gems & Jewellery/ Software/ IT

Enterprises can avail credit facility under the Scheme.
Eligible Properties  The loan amount shall be covered by mortgage of
unencumbered residential house/ flat, non-agricultural
property or the commercial property.

 In case of factory premises, only land and building are to be

considered (valuation towards plant and machinery are not
to be considered for the purpose of mortgage loan eligibility)

 In case the property is leased out/ let out it should be backed

by lease/ rent agreement. The rent / lease amount shall be
assigned in favour of Bank and such proceeds shall be
credited to the A/c maintained with our Bank.

 Stamped undertaking from the tenant(s) should be obtained

to the effect that he/she will vacate the property in the event
of Bank’s invoking SARFAESI action. In case of any change
in lease/ rental status of the property it should be intimated to
the Bank in time and aforesaid formalities are to be adhered.

 Owner(s) of the property shall stand as a Guarantor.

 The property which is well bounded/ properly demarcated

(having clear road access)/ enforceable / marketable can be
considered for the mortgage under this scheme.

 Immovable property of the individuals having the age

exceeding 70 years will not be taken as security under the
scheme.

Area of operation All Branches are eligible

Type of Facilities  Overdraft limit for working capital purpose.

 Term Loan/ Demand Loan to acquire fixed assets for
general business purposes.
 Non fund based limit
 Non-fund based working capital facility can be extended only by
earmarking OD facility for fund based working capital
requirement. No standalone non-fund based facility will be
allowed.

Loan Limit  For the property/ies located at Rural/Semi Urban areas:

Maximum Rs. 500.00 lakhs.

 For the property/ies located at Urban/Metro areas:

Maximum Rs.1000.00 lakhs.

Margin 40% of the Realizable Value of the property

Assessment of A. Assessment of Working Capital Finance (Existing &

Loans newly established unit): [Where Financial Statements
(FS) are available]

 60% of the realizable value of the property.

OR
 25% of the estimated annual sales/gross income

Whichever is less

B. Assessment of Working Capital Finance: (Where financial

statements are not available): Restricted to Rs. 50 lakhs.

 If the party is not maintaining proper financial statement,

such as professionals etc. then 4 times of annual income
(average of last two years).
OR
 60% of the realizable value of the property

Whichever is less.

Income of co-borrowers shall be considered in

determining the loan amount in case the loan is taken
jointly.

C. Assessment of Term loan:

 60% of the realizable value of the property

OR
 75% of the assets to be created out of term loan
 Whichever is less
It is clarified here that if the Term Loan is considered for
augmenting long-term margin in the business, quantum of loan
will be maximum upto 60% of realizable value of the property.

Note:

Working capital finance and term loan together should not

exceed 60% of the realizable value of the property taken as
collateral security.

Tenure of Loan Overdraft: For 12 Months subject to annual renewal/ review

Term Loan: Upto 180 months including moratorium period of

maximum upto 6 months

Primary Security  Mortgage (Registered or Equitable) of immovable

property(s)/ Factory Land & Building and / or any other
property (Land & Building).

 Visit shall be conducted at the time of renewal of Account to

ensure that the existing mortgaged property is in good
condition. However, in case apparent deterioration is
observed in the property fresh valuation shall be undertaken
for reassessment of the existing facility. In case of need,
efforts are to be made to replace the security/ taking exit from
the exposure.

 In case of term loan, it shall be ensured that the residual life

of the mortgaged property is well within the repayment period
of the loan.

Guarantee / Other In case of Proprietorship/ Partnership Firm/ Company/ Trust/

Security Society, personal guarantee of proprietor/ individual major
partners/ promoter directors/ Trustees/office bearers or
authorized signatory/ies shall be taken as per Bank’s Policy
guidelines in addition to Equitable Mortgage.

Rate of Interest As per Bank’s Policy guidelines