info@logintoloans.com +91 8885545255

Logintoloans Assistant

Enter Pincode

Personal Details

Key Features of PNB Project Loans

  • Purpose: Financing for new projects, as well as for expansion, diversification, or modernization of existing businesses. Covers infrastructure sectors (e.g., roads, power plants, ports) and non-infrastructure sectors (e.g., manufacturing, commercial projects). Supports sustainable projects under initiatives like SATAT—for example, PNB’s Compressed Bio Gas (CBG) loan scheme.
  • Types of Facilities: Fund-based: Term loans and working capital loans to meet capital expenditure and operational needs. Non-fund-based: Facilities such as letters of credit and bank guarantees for project-related obligations.
  • Loan Tenure: Term loans available for up to 12 years, including a moratorium period of up to 2 years (which may include the construction phase and up to 18 months post Commercial Operation Date). Working capital limits typically sanctioned for 1 year, renewable annually.
  • Interest Rates: Competitive interest rates based on the project profile and borrower risk rating. Concessional rates available—for example, a 0.25% interest concession on the card rate for CBG projects under SATAT. Interest during the construction period may be capitalized as part of the project cost, while post-COD interest during moratorium must be serviced.
Credit Card Promotion
    • Loan Amount: Varies based on the project’s requirements and the bank’s assessment. For specific schemes like CBG projects, the loan amount is tailored to cover term loans, working capital, and non-fund-based limits.
    • Security and Collateral: Primary Security: Hypothecation of project assets (e.g., stocks, receivables, machinery) and mortgage on project land. Collateral Security: Minimum 25% collateral in the form of liquid security or real estate. However, if the realizable value of the mortgaged land and building exceeds 110% of the total exposure, no additional collateral is required. For land acquisition, the loan amount cannot exceed 50% of the overall term loan, with a minimum 50% margin on the total land cost (including registration fees).
    • Charges and Fees: Processing Fees: Applicable, though specific rates are not detailed in the provided information. For comparison, personal loans from PNB have processing fees of up to 1%, suggesting similar charges may apply. Other Charges: Charges may apply for non-fund-based facilities like guarantees or letters of credit, subject to bank guidelines.
    • Eligibility: Available to businesses, including medium and small enterprises, for viable projects. Specific schemes (e.g., CBG loans) may have tailored eligibility criteria, such as compliance with SATAT guidelines for sustainable projects.
    • Repayment: Flexible repayment schedules aligned with project cash flows. For term loans, repayment can extend up to 12 years, with moratorium benefits during the construction and initial operational phases.
    • Additional Features: Escrow Accounts: Exclusive charge over project cash flows, assets, and escrow accounts to secure repayments. Commercial Agreements: Charges may be created over project-related agreements to ensure financial discipline. Online Application: PNB’s WebLenS platform allows for seamless online loan applications, enhancing accessibility.
Who We Are

Benefits of Project Loans

  • Comprehensive Financing: Covers capital expenditure (e.g., land, machinery, buildings) and working capital needs, ensuring holistic funding for project implementation. Includes non-fund-based facilities like letters of credit and bank guarantees to support project-related transactions.
  • Long-Term Funding: Term loans with tenures up to 12 years, including a moratorium period (up to 2 years, covering construction and up to 18 months post-Commercial Operation Date), allowing borrowers to stabilize cash flows before repayment begins.
  • Flexible Repayment: Repayment schedules are tailored to the project’s cash flow generation, reducing financial strain during initial operational phases. Interest during construction can be capitalized, easing early-stage repayment burdens.
    • Competitive Interest Rates: Offers attractive rates with potential concessions (e.g., 0.25% discount on card rates for Compressed Bio Gas projects under the SATAT scheme), making borrowing cost-effective.
    • Support for Diverse Projects: Finances both infrastructure (e.g., roads, power plants) and non-infrastructure projects (e.g., manufacturing, commercial ventures), catering to a wide range of industries.
    • High Loan Amounts: Loan amounts are customized based on project needs, enabling funding for large-scale ventures without liquidity constraints.
    • Moratorium Benefits: The moratorium period provides a breathing space during project setup and early operations, allowing borrowers to focus on project execution rather than immediate repayments.
    • Security and Risk Mitigation: Structured financing with escrow accounts and charges on project assets/cash flows ensures disciplined repayment while protecting the borrower’s long-term interests.
    • Accessibility and Convenience: Online application through PNB’s WebLenS platform simplifies the loan process, saving time and effort. Nationwide branch network and customer support offer convenience and reliability.
    • Support for Sustainable Development: Loans aligned with government initiatives (e.g., SATAT for CBG projects) contribute to environmental sustainability and may attract additional incentives or subsidies.
    • Boost to Business Growth: Enables businesses, including medium and small enterprises, to undertake large-scale projects, fostering expansion, modernization, and competitiveness in the market.
Check Best Gold Loan Offers

How to Apply for Project Loans

  • 1. Understand Eligibility and Requirements
    • Ensure your project aligns with PNB’s project loan categories:
    • Infrastructure and non-infrastructure sectors
    • Specialized schemes like Compressed Bio Gas (CBG) under SATAT
    • Confirm business eligibility: MSMEs, proprietorships, partnerships, LLPs, private/public limited companies
    • Prepare a detailed project report with financial projections, purpose, and implementation plan
  • 2. Gather Required Documents
    • Project Report: Includes cost estimates, revenue forecasts, and execution timelines
    • Business Documents: Company registration, partnership deed, or incorporation certificate
    • Financials: Balance sheets, P&L statements, ITRs for the past 2–3 years
    • Promoter KYC: PAN, Aadhaar of promoters/directors
    • Property Documents: Title deeds, lease agreements, valuation reports
    • Statutory Approvals: Environmental clearances, licenses, permits if applicable
    • Bank Statements: Recent business account statements
    • Additional documents may be needed for specific schemes like CBG
  • 3. Choose Application Method
    • Online Application:
    • Visit PNB’s official website or the WebLenS portal
    • Navigate to the Business Loan/Project Finance section
    • Fill in loan details and upload scanned documents
    • Submit the form and note the reference number for tracking
    • Offline Application:
    • Visit your nearest PNB branch (preferably one handling project finance)
    • Collect and submit the application form with physical documents
  • 4. Consult with PNB Officials
    • For large or complex projects, schedule a consultation with bank officials
    • Discuss loan terms, collateral, moratorium period, and processing charges
  • 5. Loan Processing and Appraisal
    • PNB evaluates project viability, financial strength, and promoter credentials
    • Review of primary and collateral securities (e.g., land, machinery)
    • Bank may request clarifications or additional documents during assessment
  • 6. Loan Approval and Disbursement
    • Upon sanction, PNB issues a letter with terms like interest rate and repayment schedule
    • Sign the loan agreement and complete legal formalities (e.g., mortgage registration)
    • Loan amount is disbursed in stages as per project progress
  • 7. Track Application Status
    • Use your reference number to check status via the WebLenS portal or PNB site
    • Offline applicants can follow up through the branch or PNB customer service

Eligibility Criteria for PNB Project Loans

  • Applicant Type
    • Business Entities: Proprietorships, partnerships, private/public limited companies, or LLPs
    • MSMEs: Medium and small enterprises
    • Special Purpose Vehicles (SPVs): For infrastructure development projects
    • Promoters/Directors: Should have relevant experience and a clean credit and financial record
  • Project Viability
    • Technically feasible and financially viable projects supported by a detailed project report
    • Must include cost estimates, funding plan, and financial projections (revenue and cash flows)
    • Implementation timeline with milestones and compliance with statutory requirements
  • Sector Eligibility
    • Applicable to infrastructure sectors (roads, ports, power plants) and non-infrastructure sectors (manufacturing, commercial real estate)
    • Special schemes like Compressed Bio Gas (CBG) under SATAT initiative must align with sustainability goals
  • Creditworthiness
    • No default history or adverse records in credit reports (e.g., CIBIL)
    • Financial stability proven through audited financials, ITRs, and bank statements
  • Collateral and Security
    • Primary security: Hypothecation of project assets (machinery, stocks, receivables, land mortgage)
    • Collateral security: Minimum 25% of loan exposure in real estate or liquid security
    • No additional collateral required if mortgaged land/building value exceeds 110% of loan exposure
    • Land acquisition loan cannot exceed 50% of the term loan with a 50% margin requirement
  • Minimum Project Scale
    • No strict minimum cost, but usually applicable for large capital-intensive projects
    • Detailed appraisal required for large-scale financing
  • Experience and Management
    • Promoters or management should have experience in similar scale projects or sector operations
    • For infrastructure, ability to manage contracts, compliance, and execution is essential
  • Compliance with Scheme-Specific Criteria
    • For CBG Loans: Compliance with SATAT guidelines and technical standards
    • Commitment to supply CBG to Oil Marketing Companies (OMCs)
    • Valid Letters of Intent (LOIs) or agreements with OMCs, if applicable
  • Location and Legal Requirements
    • Project must be within India and comply with applicable laws, zoning, and environmental norms
    • Clear title or valid lease agreements for project land is mandatory
Check Best Gold Loan Offers

Documents Required for PNB Project Loans

  • 1. Application Form
    Completed project loan application form (available online via PNB’s WebLenS platform or at PNB branches).
    Ensure all fields related to project details and financing needs are accurately filled.
  • 2. Project Report
    Detailed report covering project overview, objectives, and scope.
    Technical feasibility: technology, infrastructure requirements.
    Financial projections: cost estimates, revenue forecasts, cash flow analysis.
    Implementation timeline, milestones, market demand analysis, and risk mitigation strategies.
  • 3. Business and Promoter Documents
    Business Registration Documents: Certificate of Incorporation, Partnership Deed, Proprietorship registration or GST certificate, MoA/AoA.
    PAN card of the business entity.
    Promoter/Director KYC: Aadhaar, PAN, passport, voter ID; address proof; passport-size photos.
    Profile of promoters: qualifications, experience, and domain expertise.
  • 4. Financial Documents
    Audited financial statements: Last 2–3 years (balance sheet, P&L, cash flow).
    ITRs of the business and promoters for last 2–3 years.
    Bank statements: Last 6–12 months of business accounts.
    Projected financials for the project duration.
    Details of existing loans: Sanction letters, repayment schedules, loan statements.
  • 5. Property and Security Documents
    Primary Security: Purchase agreements for machinery, invoices, title deeds or lease agreements, and valuation reports for assets.
    Collateral Security: Real estate or liquid security covering at least 25% of loan exposure; valuation and non-encumbrance certificates.
    Land Acquisition (if applicable): Sale agreement, land registration, proof of payment.
    Note: Land loan portion cannot exceed 50% of term loan, and requires a 50% margin on total cost.
  • 6. Statutory Approvals and Clearances
    Environmental approvals from pollution control boards or relevant authorities.
    Regulatory approvals: licenses, permits, NOCs (e.g., land use, building plan).
    Industry-specific clearances (e.g., SATAT compliance for CBG projects).
  • 7. Project-Specific Documents
    For CBG Projects: LOIs or agreements with Oil Marketing Companies (OMCs), technical specifications, SATAT guideline compliance.
    For Infrastructure Projects: Concession agreements, EPC contracts, commercial agreements, and escrow account setup details.
  • 8. Other Documents
    Proof of statutory compliance: GST returns, PF/ESIC registrations, etc.
    Insurance policies for project assets (existing/proposed).
    Board resolution (for companies) authorizing loan application and signatories.
    Escrow account documents, if applicable, for managing project cash flows.

Factors Considered for PNB Project Loans

  • 1. Project Viability
    Technical Feasibility: Proven technology, access to necessary infrastructure, and executable within proposed timelines.
    Financial Viability: Adequate revenue potential, positive cash flows, acceptable DSCR and IRR.
    Requires a comprehensive project report with cost estimates, revenue projections, and risk analysis.
  • 2. Promoter’s Creditworthiness
    Credit History: Clean record with no defaults or adverse CIBIL reports.
    Financial Stability: Based on audited financials, income tax returns, and bank statements (last 2-3 years).
    Net Worth: Sufficient capacity to contribute equity and absorb losses.
  • 3. Experience and Expertise
    Promoters/management must have relevant industry experience and capability in handling similar projects.
    Infrastructure projects require contract management, regulatory compliance, and execution experience.
  • 4. Security Collaterals
    Primary Security: Hypothecation of project assets, mortgage of project land.
    Collateral Security: Minimum 25% of loan exposure in liquid assets or real estate.
    If mortgaged land/building value exceeds 110% of total exposure, no additional collateral needed.
    Land Acquisition: Loan for land capped at 50% of term loan with a 50% margin; clear title and valuation report required.
  • 5. Statutory and Regulatory Compliance
    All necessary approvals and clearances such as environmental clearances, land use permissions, building plans, and licenses.
    Must comply with local laws, zoning regulations, and policies (e.g., SATAT guidelines for CBG).
  • 6. Market and Demand Analysis
    Proof of market demand for output (goods, services, or infrastructure).
    Includes competitive analysis and LOIs or agreements with Oil Marketing Companies (OMCs) for specific schemes.
  • 7. Debt-Equity Ratio
    Balanced capital structure with promoter equity of typically 20-30%.
    Higher equity improves loan approval chances and reduces bank risk.
  • 8. Repayment Capacity
    Cash flows must support repayment of interest and principal.
    May include a moratorium period (up to 2 years including construction and up to 18 months post-COD).
    Escrow accounts and cash flow charges may be required.
  • 9. Risk Assessment and Mitigation
    Identification and mitigation of risks (cost overruns, delays, market risks).
    Insurance for project assets.
  • 10. Sector and Scheme Alignment
    Project should align with PNB’s focus sectors like infrastructure, MSMEs, or green initiatives.

Frequently Asked Questions (FAQs)

1. What are PNB project loans?
PNB project loans are financial products designed to fund the establishment of new projects or the expansion, diversification, or modernization of existing ones in infrastructure (e.g., roads, power plants) and non-infrastructure sectors (e.g., manufacturing, commercial projects). They include term loans, working capital loans, and non-fund-based facilities like letters of credit and bank guarantees.
2. Who is eligible to apply for a PNB project loan?
Eligible applicants include:
- Business entities such as proprietorships, partnerships, private/public limited companies, LLPs, or Special Purpose Vehicles (SPVs)
- Medium and small enterprises (MSMEs)
- Promoters with relevant industry experience and a clean credit history
Projects must be technically feasible, financially viable, and compliant with statutory requirements. For specific schemes like CBG loans, additional criteria (e.g., SATAT compliance) apply. Contact PNB for precise eligibility details.
3. What types of projects can be financed under PNB project loans?
PNB finances:
- Infrastructure projects: Roads, bridges, power plants, ports, airports, etc.
- Non-infrastructure projects: Manufacturing units, commercial real estate, retail, etc.
- Sustainable projects: E.g., Compressed Bio Gas (CBG) plants under the SATAT initiative
Projects involving new setups, expansions, diversification, or modernization are eligible.
4. What is the maximum loan amount for a project loan?
The loan amount depends on the project’s capital expenditure, working capital needs, and PNB’s appraisal. No specific maximum is mentioned, but amounts are customized based on project viability and promoter’s contribution. For precise limits, consult PNB directly.
5. What is the tenure of a PNB project loan?
Term Loans: Up to 12 years, including a moratorium period of up to 2 years (covering construction and up to 18 months post-Commercial Operation Date).
Working Capital Loans: Sanctioned for 1 year, subject to annual renewal.
6. What are the interest rates for PNB project loans?
Interest rates are competitive and vary based on project type, credit rating, and scheme. For example, CBG loans under SATAT offer a 0.25% concession on the card rate. Exact rates are determined during appraisal. Contact PNB or visit www.pnbindia.in for current rates.
7. What documents are required to apply for a project loan?
Typical documents include:
- Completed application form
- Detailed project report (technical and financial feasibility)
- Business registration documents (e.g., Certificate of Incorporation, Partnership Deed)
- Promoter KYC (e.g., PAN, Aadhaar, photographs)
- Financials (e.g., audited balance sheets, ITRs, bank statements for 2–3 years)
- Property documents for primary security and collateral
- Statutory approvals (e.g., environmental clearances, licenses)
- For CBG loans, additional documents like Letters of Intent with Oil Marketing Companies
Check with PNB for a project-specific checklist.
8. What security or collateral is required for a project loan?
Primary Security: Hypothecation of project assets (e.g., machinery, stocks) and mortgage of project land.
Collateral Security: Minimum 25% of loan exposure in liquid security or real estate. If the realizable value of mortgaged land/buildings exceeds 110% of the exposure, no additional collateral is needed.
For land acquisition, the loan cannot exceed 50% of the term loan, with a 50% margin on land cost.
9. How can I apply for a PNB project loan?
Online: Use PNB’s WebLenS platform or visit www.pnbindia.in to fill out the application and upload documents.
Offline: Visit a PNB branch to submit the application and physical copies of documents.
For large projects, consult a PNB loan officer or relationship manager.
10. What is the moratorium period for project loans?
The moratorium period is up to 2 years, including the construction phase and up to 18 months after the Commercial Operation Date (COD). During construction, interest may be capitalized; post-COD, interest must be serviced.
11. Are there any special schemes under PNB project loans?
Yes, PNB offers specialized schemes like PNB Compressed Bio Gas (CBG) loans under the SATAT initiative, which support sustainable projects with concessions (e.g., 0.25% lower interest rates) and tailored terms. Other schemes may focus on infrastructure or MSME projects. Check with PNB for details.
12. What factors does PNB consider when approving a project loan?
Key factors include:
- Project viability (technical and financial feasibility)
- Promoter’s creditworthiness and industry experience
- Security and collateral (primary and additional)
- Statutory compliance (e.g., environmental clearances)
- Market demand and repayment capacity
- Debt-equity ratio and risk mitigation plans
Large projects may involve third-party appraisals or site visits.

List of PNB Project Loans

  • PNB Compressed Bio Gas (CBG) Loan
  • PNB Sampatti Scheme
  • GST Express Loan Scheme
  • PNB e-Mudra Scheme
  • PNB Artisan Credit Card
  • PNB Project Finance and Infrastructure Finance
  • PNB Corporate Term Loans
  • PNB Working Capital Loans
  • PNB Non-Fund Based Limits
  • PNB Renewable Energy Financing