Pre approved
Business Loan
CENTRE FOR LEARNING AND
INNOVATION
STC KOLKATA
PPT prepared by Vivek Burnwal
PPT vetted by Govind Narayan
Assessment prepared Vivek Burnwal
by
Assessment vetted by Govind Narayan
Circulars referred MSME Circular No.88/2023
Topic Type Introduction, Scheme
Difficulty Level Basics
2
To make our Current Account schemes more
attractive, Bank has launched Pre-Approved
Business Loan (PABL) in the form of an OD
facility to existing Current Account holders.
All individual customers or sole proprietors
aged between 18-65 years who have been
Introduction maintaining Current Accounts with PNB for
the last 12 months are eligible for a PABL of
above Rs. 1 lac to Rs. 10 lac.
Consumer CIBIL score should be ≥ 700 &
Commercial CIBIL up to CMR 5.
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Eligibility
• Individual Customer or Sole proprietor having an active KYC
complied Current Account with us since past 12 months.
• Applicant should be 18 to 65 years of age.
• Minimum required score as per IRMD scoring module, should be
more than 50.
• No. of cheques having value of more than Rs.25000/- returned due
to financial reasons should not be more than 10% of total presented
cheque.
• Not availing any CC/OD business loan from any bank/FI in the
constitution of Individual, proprietorship or partnership (other than
loan against Bank Deposit) during the last 12 months. If the last
reporting date of the CC/OD facility is more than 12 months, the
applicant will be eligible.
• No loan should be active under PNB GST SAHAY Scheme (DLGST).
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Scheme Details
• Quantum of Exposure:Min Rs.1,00,001/- to max Rs.
10,00,000/-.
• Margin : Not applicable
• Nature of facility:Overdraft (General), with annual renewal.
• Udhyam Registration Number mandatory.
• The city of business as per CBS and as per Udhyam, should
be same, which will be checked digitally. No Pre Sanction
visit will be required. However, Post Disbursement visit up
to Rs 10 Lacs will be as per Bank’s extant guidelines.
• Sanctioning Authority:Rule based automated instant
sanctioning by the system.
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Scheme Details
• Primary Security: Entire present and future current assets.
• Collateral Security :Guarantee Coverage under CGTMSE to
be obtained. CGTMSE charges will be collected by portal
from the borrower only for first year.
• Acceptable Financial ratios : Not applicable
• Stock Statement:Not applicable. A self-declared statement
of assets charged to the bank will be obtained from the
customer on annual basis.
• Obtention of financials : Waived
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Assessment of Loan
PABL SCORE Permissible Loan Min. Trade related
Amount (% of credit should be
trade related
credits) above
>50 and upto 65 20 % Rs. 5 Lac
>65 and upto 100 25 % Rs. 4 Lac
Loan assessment will be based on the trade related credits
arrived in current accounts through Credit Summation in
last 12 months and the PABL score.
Trade related credit excludes: credits from own customer ID,
FDR encashment, reversal entries, Credit and debit of same
amount on same day, credit from saving account of
proprietor, interest credited & more than 50% credit
transaction from one business entity
Permissible Loan amount will be above Rs.1 Lac to Rs. 10
Lakh. 7
Enhancement of limit
• All customers who have a satisfactory repayment history in the
last 12 months will be eligible for an increase in the sanctioned
limit. Satisfactory repayment history means no slippage in the
SMA 1/ SMA2/ NPA.
• If the OD account open date is less than 12 months, the
satisfactory repayment history will be taken into account only
from the date of opening of account.
• Enhancement in the existing PABL accounts shall be allowed after
12 months from the date of last sanction.
• The calculation of the limit will be done based on the aggregate
amount of trade-related credit in both OD and current account
during the previous 12 months.
• However, total sanctioned limit of customer shall be restricted to
a maximum of Rs. 10 lakh.
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Acceptable Consumer and Commercial CIRs
• Consumer CIBIL score should be ≥700, for individual as well as
proprietors.
• Commercial CIBIL up to CMR 5 and including No CMR rank.
• Consumer CIBIL score should be ≥750, for individual as well as
proprietors where presence of Negative accounts (viz. Written-off,
settled, restructured, devolved, sold to ARC, invoked, settled post
write-off cases)
• In case of Proprietorship firm, CIR of Proprietor as well as of Firm will
be considered individually and must satisfy aforementioned
conditions.
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Exclusion on the basis of CIR
• 3 or more instances of DPD of more than 30 days in last 12 months.
• Presence of negative accounts viz. Written-off, settled, restructured,
devolved, sold to ARC, invoked, settled post write-off cases,
reported in last 60 months.
• Any active CC/OD business loan in CIC report of applicant on any
capacity and reported in last 12 months.
• Partners of the Partnership firm which has availed Business loans.
• More than 3 enquiries in last month (30 days)
• DPD of more than 30 days in last reported month.
• Account in NPA category in the last 12 months.
• Any account which was in NPA category beyond 12 months, having
status as not closed.
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Other scheme details
• Documentation : The loan agreement will be Digitally stamped
and signed by the customer through NESL and Customer will be
notified. Customer Saving/Current account will be lien marked
with the requisite amount of e-Stamping before proceeding for
disbursement.
• Insurance: An undertaking from the Borrower will be incorporated
in Sanction Letter that he will get the securities insured, created
out of bank finance
• Exclusive Dealing clause:Party shall deal exclusively with our
Bank. An undertaking to this effect will be incorporated in
Sanction Letter.
• End use Verification:The proceeds of the Facility shall be utilized
by Borrower for the business purpose only. An undertaking to this
effect will be incorporated in Sanction Letter.
• CBS Scheme Code : ODPBL
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Rate of Interest & Processing Fees
RATE OF INTEREST
PNB PABL SCORE ROI
>50 and upto 70 RLLR+BSP+4.00%
>70 and upto 100 RLLR+BSP+3.50%
PROCESSING FEES
LOAN AMOUNT CHARGES
Up to ₹5 Lakh Nil
Above ₹5 Lakh to ₹10 Lakh 0.35%
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Case Study & Assessment
Case Study
Sunil aged 25 years is a sole proprietor who is maintaining an active
current account with PNB Tollygunge Branch for more than 12 months
and is classified as MSE. His CIBIL report shows that he has a CC
account with SBI and the reporting date is more than 12 months old.
His consumer CIBIL score is 750 and Commercial CIBIL MSME RANK
(CMR) is 3.
He has not taken any loan from PNB till date. He has presented
cheques totaling Rs. 2.5 crore till now and only one once of his
cheques amounting Rs. 15000 has been returned dishonoured due to
insufficient funds till now.
He was interested in taking a business loan of Rs. 10 lacs from PNB
Tollygunge and said that his CIBIL is good and his CC with SBI is
regular and he has never taken any other loan from any bank except
the CC from SBI. The Branch Head advised him to apply for PABL
through PNB One.
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Case Study Assessment Questions
Q.1. Sunil applied for PABL through PNB One. The trade related
credits in his current accounts in the last 12 months was Rs. 40
lacs and his PABL score was 60. What is the loan amount that
will be sanctioned by the business rule engine to him under
PABL through STP ?
a) Rs. 8 lacs.
b) Rs. 10 lacs
c) Rs. 1.6 lacs
d) Borrower is ineligible as per scheme
e) Rs. 4 lacs
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Case Study Assessment Questions
Q.2 What rate of interest will be charged by the bank for the
PABL sanctioned to Sunil ?
a) RLLR+BSP+4.00%
b) RLLR+BSP+3.00%
c) RLLR+BSP+3.50%
d) RLLR+BSP+2.00%
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Case Study Assessment Questions
Q.3 The repayment history in the PABL loan taken by Sunil was
satisfactory in the last 12 months. His CIBIL record was also
good and none of his loan accounts were irregular. The trade
related credits in his current accounts and PABL in last 12
months was Rs. 80 lacs and his PABL score was 60. What is the
enhanced limit in the existing PABL account that shall be
allowed to Sunil after 12 months from the date of last sanction
of PABL ?
a) Rs. 8 lacs.
b) Rs. 10 lacs
c) Rs. 16 lacs
d) Rs. 4 lacs
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Case Study Assessment Answers
ANSWERS OF CASE STUDY QUESTIONS
1. a.
2. a.
3. b.
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Thank you!
