Fuel Your Growth with PSB Contractor Plus and Flexi Term Loan
Punjab & Sind Bank (PSB) offers a specialized loan scheme called PSB Contractor Plus, designed specifically for contractors and subcontractors in the MSME sector. This plan provides financial assistance to ensure smooth project execution, the purchase of tools or machinery, and guarantees required for large-scale projects.
What is PSB Contractor Plus?
The PSB Contractor Plus scheme caters to the diverse financial needs of contractors and subcontractors. It ensures easy access to funds for critical requirements, such as procuring tools and materials or paying workers, to prevent delays or disruptions in project execution.
Purpose of PSB Contractor Plus
The PSB Contractor Plus scheme is designed to address three primary financial needs:
- Working Capital
Offers fund-based and non-fund-based facilities to manage day-to-day expenses, including material procurement, labour payments, and statutory obligations.
- Term Loan
Provides funding for purchasing machinery, equipment, or transport vehicles essential for contractual work.
- Bank Guarantee
Offers guarantees required for bidding on tenders, securing advance payments, and fulfilling contractual performance obligations.
By addressing these financial requirements, PSB Contractor Plus serves as a reliable financial partner for businesses executing large-scale projects.
Eligibility Criteria for PSB Contractor Plus
To qualify for PSB Contractor Plus, applicants must meet the following criteria:
MSME Contractors: Businesses engaged in contractor or subcontractor activities.
Sub contractors: Those working under main contractors with a registered agreement and have necessary permissions or licenses.
Business Entities: Eligible entities include individuals, sole proprietorships, partnership firms, Hindu Undivided Families (HUFs), joint ventures, or joint-stock companies engaged in contract work.
PSB Flexi Term Loan: A Perfect Companion to PSB Contractor Plus
The PSB Flexi Term Loan is an additional pre-approved loan offered alongside PSB Contractor Plus. This loan simplifies the process of obtaining funds for contractors when needed and is designed to support long-term requirements.
Key Features of Flexi Term Loan
- Eligibility
- Existing MSME customers with a satisfactory credit history of at least one year.
- A working capital facility secured by property is required.
- Purpose
- Funding for purchasing equipment, machinery, commercial vehicles, or furniture to ensure smooth project execution.
- Loan Amount
- Available only to contractors with a working capital loan of ₹1 crore or more under PSB Contractor Plus.
- The term loan amount is capped at 25% of the working capital loan. For example, if the working capital loan is ₹1 crore, an additional ₹25 lakh can be availed as a term loan.
- Repayment Terms
- Repayable over five years (60 EMIs), offering flexibility to manage cash flows.
The Flexi Term Loan complements PSB Contractor Plus, creating a comprehensive financial solution for contractors.
Why Choose PSB Contractor Plus?
The PSB Contractor Plus scheme is ideal for contractors and subcontractors due to its numerous advantages:
- Flexible Funding Options
- Provides customized solutions such as working capital for daily operations and term loans for purchasing machinery or tools.
- Higher Loan Amounts
- Loan amounts range from ₹10 lakh to ₹2,000 lakh, based on the value of the property mortgaged.
- Simplified Processes
- Integration with Flexi Term Loan ensures a hassle-free process, making funds accessible for equipment and machinery purchases.
Security and Repayment Terms
To avail of the loan, applicants must provide collateral, such as property or demarcated land. The bank offers up to 80% of the property’s value as a loan.
- Working Capital (ODP): Repayable on demand.
- Term Loan: Repayable within 10 years.
- Bank Guarantee: Valid for up to 10 years.
How to Apply for PSB Contractor Plus and Flexi Term Loan
Applicants must submit the following documents:
- Application Form: A completed and signed form.
- Photographs: Two recent passport-sized photos.
- Identity Proof: Aadhaar card, PAN card, or passport.
- Address Proof: Utility bill, Aadhaar card, or registered rental agreement.
- Age Proof: Any government-issued ID.
- Income Proof:
- For salaried applicants: Last three months' salary slips and tax forms.
- For business owners: Proof of business registration and tax returns for the last three years.
- Bank Statements: 6–12 months of bank account statements.
- Business Proof: Documents such as a certificate of incorporation, trade license, or GST registration.
Conclusion
Punjab & Sind Bank’s PSB Contractor Plus and Flexi Term Loan schemes offer tailored financial solutions for MSME contractors. By addressing both short-term and long-term financial needs, these schemes empower contractors to focus on delivering high-quality projects.
To learn more, visit the nearest Punjab & Sind Bank branch or explore the official website to discover how these schemes can support your business growth.
FAQs
Q: What is PSB Contractor Plus, and who can apply?
A: PSB Contractor Plus is a loan scheme for MSME contractors and subcontractors. Individuals, sole proprietors, partnership firms, HUFs, joint ventures, and joint-stock companies engaged in contract work can apply.
Q: What types of financial assistance are available under PSB Contractor Plus?
A:
- Working Capital: For daily business needs like materials and wages.
- Term Loan: For purchasing machinery, tools, or vehicles.
- Non- Fund based Facility (Bank Guarantee): For bidding on tenders, securing advance payments, or fulfilling contract requirements.
Q: What is the PSB Flexi Term Loan, and how does it work?
A: The Flexi Term Loan is a pre-approved loan under PSB Contractor Plus for contractors with a working capital loan of ₹1 crore or more. It provides additional funding of up to 25% of the working capital limit for purchasing equipment or machinery.
Q: What documents are needed to apply?
A: Applicants need:
- A completed application form.
- Identity, address, and age proof.
- Income proof (salary slips or business tax returns).
- Bank account statements (6–12 months).
- Proof of business existence for contractors.
