PNB Bank Application form for demand loan/overdraft against bank deposit (Advance against Deposit –sanction letter PNB 1136) from Download

The PNB 1336 document is Punjab National Bank’s official Sanction Letter and Most Important Terms & Conditions (MITC) issued to a borrower upon the approval of a Demand Loan or Overdraft facility against their bank deposits (Advance ag… pp. 1, 3).

The key points from this document are broken down below:

• Precedence of Terms: This sanction letter forms an integral part of the final loan agreement (Advance ag… p. 2). If there is any inconsistency between this letter and the loan agreement, the terms in this Sanction Letter will prevail (Advance ag… p. 2).
• Fees & Costs: There is NIL upfront or processing fee (Advance ag… p. 1). However, incidental charges apply at ₹2 per entry, subject to a minimum of ₹100 and a maximum of ₹1,000 (Advance ag… p. 1).
• Acceptance: The borrower (and guarantor, if any) must convey acceptance by signing every single page of the sanction letter and the MITC (Advance ag… pp. 1-2).

• 6-Month Window: The sanction remains valid for six months from the approval date (Advance ag… p. 3). If not availed within this timeframe, it lapses (Advance ag… p. 3). The bank also reserves the right to withdraw the loan at any time before this period expires (Advance ag… p. 3).
• Strict Usage Restrictions: The loan amount cannot be used for speculative purposes, inter-corporate investments, or acquiring a controlling interest in any company (Advance ag… p. 5).
• Exposure Cap: The borrower must declare that their total aggregate credit exposure across the entire banking system is less than ₹5 crore and must notify PNB immediately if it crosses this threshold (Advance ag… p. 5).
• Matching Identity: For loans sanctioned against self-deposits, funds will only be disbursed into and recovered from an account holding the exact same Customer ID and name (Advance ag… p. 5).

• Interest Accrual: Interest is computed on the daily outstanding balance and is debited/charged on a monthly basis, compounding at monthly rests (Advance ag… p. 3).
• Margin Maintenance: The borrower must maintain the bank’s stipulated financial margin (Advance ag… p. 3). If a default causes the margin to erode, the borrower must add funds to clear the shortfall or face premature liquidation of their deposit to close the loan (Advance ag… pp. 3-4).

• Demand Loan Rules:
  • Single Deposit: The loan’s maturity date mirrors the maturity date of the pledged deposit (Advance ag… p. 4).
  • Multiple Deposits: The expiry date is aligned with the last maturing deposit (Advance ag… p. 4). Once the first deposit matures, the bank applies auto-closure/delinking, reducing the loan’s drawing power and resetting the interest rate based on the remaining deposits (Advance ag… p. 4). No further disbursements are allowed once a Demand Loan is active (Advance ag… p. 4).
• Overdraft (OD) Rules:
  • Single Deposit: Expiry aligns with the deposit’s maturity date (Advance ag… p. 4).
  • Multiple Deposits: The initial expiry date is set to the earliest maturing deposit (Advance ag… p. 4). As individual deposits mature and auto-renew/close (based on the borrower’s initial choice), the OD’s expiry date, drawing power, and interest rate continuously update to align with the next upcoming deposit maturity date (Advance ag… p. 4).

• No Payment Reminders: The bank explicitly states it is not obligated to send reminders or notices for regular monthly interest or principal due dates (Advance ag… p. 6).
• Premature Liquidation: If the borrower defaults on repayments, PNB is legally authorized to prematurely close the Fixed/Recurring Deposit to recover the outstanding debt (Advance ag… p. 6).
• CIBIL Reporting: Account performance metrics are sent to CIBIL (or other credit bureaus) monthly (Advance ag… p. 6). Defaulting on the loan will negatively affect the borrower’s credit score (Advance ag… p. 6).
• Legal Penalties: In case a standing instruction or NACH/ECS mandate fails due to insufficient funds, the bank can initiate legal criminal proceedings under Sections 138-142 of the Negotiable Instruments Act (Advance ag… p. 3).

• Document Turnaround: Copies of signed loan documents are provided within 7 working days (subject to an administrative fee) (Advance ag… p. 6). Original deposit receipts are returned within 3 working days of full loan closure (Advance ag… p. 6).
• Grievance Escalation: If a complaint registered via customer care (care@pnb.co.in) or a branch head is left unresolved for over 15 days, the borrower can escalate the issue directly to the Principal Nodal Officer at the PNB Head Office in Dwarka, New Delhi (Advance ag… pp. 6-7).

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PNB Bank Application form for loan against Deposit (Application form advance against deposit PNB 308 (R)) Download

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