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Comparing Business Loan Of A Bank And An App

Author: Apoorv Chaudhary
by Apoorv Chaudhary
Posted: Feb 21, 2021

The market of business loans has reached new heights due to internet penetration. The big banks were already in the market. However, new players such as digital lenders have emerged in the market.

So, today we have brought two business loan lenders who are the market leader in their own segment. They are PNB Business loan and Ziploan. The former is a prominent national bank, while the latter is a leader in digital lending.

For your next business loan, they could be an excellent choice. However, it is essential to know their details, which we will mention. Then you can decide which one is better for you.

PNB Business loan

Punjab National Bank is one of the oldest banks in India. It was instituted way back in 1894. Currently, it has over 6500 branches all over India. Its business loan is quick, competitive, and transparent.

  • PNB Business loan amount Is offered up to Rs 15 lakh.

  • The rate of interest starts at 12.60% per annum.

  • The loan tenure is up to 5 years.

  • The documentation charge is NIL to Rs 50,000, depending upon the loan amount.

  • The prepayment charge is allowed after 6 EMIs.

  • The prepayment charge is 2% of the outstanding loan amount.

  • No due certificate charge is Rs 150 per certificate.

Types of PNB Business loan

Currently, PNB business loans offer 6 types of business loans.

  1. Mudra Loan under PMMY

  2. Super Trade

  3. PNB Professional schemes

  4. PNB Vanita

  5. PNB Sanjeevani

  6. PNB Green Ride

The eligibility criteria for PNB Business loan

  • The borrower's age should be from 21 years to 58 years.

  • The business turnover should be at least Rs lakh P.A

  • The applicant should have a minimum of 2 years of work experience.

  • The required CIBIL Score is from 600 to 750.

  • The business should be profitable for a minimum of 1 year.

  • The business should be continued for at least 2 years.

Features & Benefits of PNB Business loan

  • You can instantly check the eligibility for the PNB Business loan online.

  • There is easy documentation.

  • PNB does not require collateral to offer the loan.

  • There is insurance cover for a business loan.

  • There are no hidden charges.

  • There is complete transparency in the process.

Required documents for PNB business loan

  • Identity proof

  • Address proof

  • Bank statement

  • Residence proof of all directors

  • Business address proof

  • VAT Return

  • Copy of MSME/SSI registration

  • Rent agreement

  • Copy of title deeds/lease deeds

How to apply for a PNB Business loan?

You can visit PNB's official website to apply for its business loan. The second way is to visit the PNB nearest branch to do it. Now, let's move on to the next lender, Ziploan Business loan.

Ziploan business loan

After PNB, let's focus on Ziploan, which is an NBFC offering business loans. It was set up in 2015 to help those borrowers who do not have access to traditional lenders' business loans.

  • Ziploan offers a loan amount of up to Rs 5 lakh.

  • The rate of interest is from 1% to 1.5% per month.

  • The processing fee is 3% of the loan amount.

  • The loan tenure is up to 2 years.

Why did you choose Ziploan?

  • Ziploan uses its own system called 'Zipscore' to determine the borrower's credibility.

  • You do not need a balance sheet to apply.

  • There is no hidden charge and complete transparency.

  • There is no prepayment penalty.

  • There is the competitive rate of interest on a flat rate basis.

Features of Ziploan business loan

  • There are multiple types of loans.

  • It requires minimal documentation to apply.

  • The loan is instantly disbursed after the verification process.

  • There is flexible loan repayment.

Types of Ziploan business loan

  1. Working capital loans

  2. Collateral free equipment loans

Ziploan eligibility criteria

  • The business turnover should be a minimum of Rs 10 lakh.

  • The minimum ITR should be at least Rs 2.5 lakh.

  • The business premise should be in the applicant's name.

  • The business should be in existence for a minimum of two years.

Required documents for Ziploan Business loan

  • Proof of identity ( Aadhar card, PAN Card, Voter ID card)

  • Proof of address ( Lease agreement, Telephone bill, water bill)

  • Bank statement for the last 1 year

  • ITR for the previous three years

  • Business address proof

How to apply for a Ziploan Business loan?

Download the Ziploan app from the Google play store to apply for a business loan. Registering on the app follows the steps to apply.

Conclusion

Both PNB Business loan & Ziploan Business loan information is in front of you. Analyze them, compare them to find out which one is best for your business requirement. Once you figure out the lender, choose one of them, then apply.

About the Author

Experienced Search Engine Optimization Executive with a demonstrated history of working in the Information technology and services industry. Strong marketing professional with a focus on Finance & Marketing.

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Author: Apoorv Chaudhary

Apoorv Chaudhary

Member since: Nov 13, 2020
Published articles: 6

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