| Particular | Complete Details |
|---|---|
| Name of Scheme | PNB Shikhar for Jammu & Kashmir and Ladakh |
| Bank | Punjab National Bank (PNB) |
| Applicable Area | Union Territories of Jammu & Kashmir and Ladakh only |
| Target Beneficiaries | MSME borrowers, including exporters |
| Type of Borrowers | Existing as well as new borrowers |
| Main Objective | To meet the short-term and long-term credit requirements of MSMEs in J&K and Ladakh |
| Special Focus | MSMEs, including exporters, in J&K and Ladakh |
| Processing | Faster TAT (Turnaround Time) compared with normal cases |
| Interest/Charges | Concessional Rate of Interest and service charges compared with the bank’s existing guidelines |
| Government Objective | To augment economic activity in Jammu & Kashmir and Ladakh |
| Document Division | MSME & Mid Corporate Credit Division, Head Office, PNB |
| Head Office Address Mentioned | Plot No. 4, Sector 10, Dwarka, Delhi – 110075 |
The scheme was formulated in view of the Government’s emphasis on promoting business activities, including exports, in Jammu & Kashmir and Ladakh.
2. Eligibility
| Eligibility Parameter | Details |
|---|---|
| Geographical Eligibility | The scheme is applicable only in the Union Territories of Jammu & Kashmir and Ladakh |
| Proprietorship Firms | Eligible |
| Partnership Firms | Eligible |
| Limited Liability Partnerships (LLPs) | Eligible |
| Private Limited Companies | Eligible |
| Public Limited Companies | Eligible |
| Other Legal Entities | Eligible |
| New Borrowers | Eligible |
| Existing Borrowers | Eligible |
| Primary Requirement | Borrower should fall within the eligible MSME/business framework and operate in the applicable UTs |
The document specifically states that proprietorships, partnerships, LLPs, private/public limited companies and other legal entities can be covered, including both existing and new borrowers.
3. Purpose of the Scheme
| Business/Activity | Coverage |
|---|---|
| Hotel Industry | Eligible |
| Tour & Travel | Eligible |
| Transport | Eligible |
| Manufacturing Industries | Eligible |
| Export of Goods | Eligible |
| Export of Services | Eligible |
| Ship/Boat/Shikara Industry | Eligible |
| Traditional Activities of J&K and Ladakh | Eligible |
| Other MSME Activities | Other activities related to MSME business can also be covered |
| Nature of Credit Requirement | Both short-term and long-term credit requirements |
The scheme is intended to meet various credit requirements of MSMEs in J&K and Ladakh, with specific coverage for hotels, tourism, transport, manufacturing, exports, ship/boat/shikara activities, traditional activities and other MSME-related businesses.
4. Quantum of Loan
| Particular | Details |
|---|---|
| Maximum Loan Amount | Up to ₹200 lakh (₹2 crore) |
| Loans up to ₹10 lakh | Proposals up to ₹10 lakh will be classified under Pradhan Mantri Mudra Yojana (PMMY) of PNB |
| Collateral for loans up to ₹10 lakh | No collateral shall be sought |
| Guarantee for loans up to ₹10 lakh | CGTMSE guarantee coverage shall be obtained |
| Maximum limit under scheme | ₹200 lakh |
Thus, the maximum loan amount mentioned in the document is ₹200 lakh, i.e. ₹2 crore. For proposals up to ₹10 lakh, the document provides special treatment under PMMY, with no collateral and CGTMSE guarantee coverage.
5. Nature of Credit Facilities
| Facility | Details |
|---|---|
| Term Loan | Available |
| Working Capital | Available |
| Export Credit | Working capital can include Export Credit |
| Non-Fund Based Limit | Available |
The scheme therefore covers both fund-based and non-fund-based requirements, including term loans, working capital/export credit and non-fund-based limits.
6. Repayment Period
| Facility | Repayment Details |
|---|---|
| Term Loan | Maximum 7 years, including the moratorium period |
| Moratorium | Maximum up to 12 months, based on merits |
| Interest During Moratorium | Interest is payable as and when due |
| Working Capital | 12 months, subject to annual renewal |
For term loans, the maximum repayment period is 7 years, including a moratorium of up to 12 months on merits. Even during the moratorium, interest remains payable as and when it becomes due. Working capital facilities have a 12-month period subject to annual renewal.
7. Rate of Interest – Regular Limits
| Loan/Limit | Rate of Interest (ROI) |
|---|---|
| Up to ₹50,000 | RLLR + BSP + 0.10% |
| Above ₹50,000 up to ₹20 lakh | RLLR + BSP + 1.00% |
| Above ₹20 lakh up to ₹200 lakh | CARD Rate or RLLR + BSP + 1.35%, whichever is lower |
The document specifies different interest-rate slabs depending upon the loan amount.
8. Interest Rates for Export Credit
| Export Facility | Rate of Interest |
|---|---|
| Export – Pre-shipment | RLLR + BSP + 0.35% |
| Export – Post-shipment Advances | RLLR + BSP + 0.35% |
| Overdue Export | RLLR + BSP + 4.00% |
| Export Credit Not Otherwise Specified (ECNOS) | RLLR + BSP + 6.00% |
These export-specific rates are separately provided under the scheme.
9. Additional Interest Rate Concession Against Collateral
| Condition | Concession |
|---|---|
| Collateral available | Customer offers collateral security |
| Collateral value condition | Value of collateral security offered is more than 75% |
| Additional concession | 0.50% concession in Rate of Interest |
| Authority | Respective sanctioning authority |
| Minimum rate condition | Rate after concession cannot go below RLLR + BSP |
Therefore, where eligible collateral security is available and its value is more than 75%, an additional 0.50% interest-rate concession can be provided, subject to the minimum rate of RLLR+BSP.
10. Margin Requirements
| Particular | Required Margin |
|---|---|
| Stocks | 20% |
| Book Debt | 25% |
| Term Loan – Others | 20% |
| Term Loan – Purchase of Land | 50% |
| Non-Fund Based Limit | Minimum cash margin of 15% |
The margin requirements are specified separately for stocks, book debts, term loans and land purchases.
11. Special Margin Concessions/Conditions
| Particular | Details |
|---|---|
| Stock Margin Reduction | Reduction in margin by 10% can be allowed |
| Book Debt Margin Reduction | Reduction in margin by 10% can be allowed |
| Basis of Reduction | Case-to-case basis |
| Land Purchase Margin | 50% of the cost of land, including registration cost |
| Maximum Loan for Land Purchase | Loan amount for purchase of land cannot exceed 50% of the total term loan amount sanctioned |
| Non-Fund Based Facility | Minimum cash margin of 15% required |
The document specifically allows a 10% reduction in stock and book-debt margins on a case-to-case basis. For land purchase, the 50% margin is calculated including registration cost.