PNB vs LIC Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Punjab National Bank and LIC Housing Finance— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
PNB vs LIC — Business Loan Comparison
Key parameters compared side by side.
| Parameter | PNB | LIC |
|---|---|---|
| Interest Rate (p.a.) | 10.35% – 14.75% | 11.5% – 15% |
| Processing Fee | 1.00% (min Rs 5,000) | 1.50% (min Rs 10,000) |
| Max Loan Amount | Rs 5 Cr | Rs 3 Cr |
| Max Tenure | 7 Years | 5 Years |
| Bank Type | Public Sector | NBFC |
| Founded | 1894 | 1989 |
| Headquarters | New Delhi | Mumbai |
Interest Rate (p.a.)
PNB
10.35% – 14.75%
LIC
11.5% – 15%
Lower/better: PNB
Processing Fee
PNB
1.00% (min Rs 5,000)
LIC
1.50% (min Rs 10,000)
Max Loan Amount
PNB
Rs 5 Cr
LIC
Rs 3 Cr
Lower/better: PNB
Max Tenure
PNB
7 Years
LIC
5 Years
Lower/better: PNB
Bank Type
PNB
Public Sector
LIC
NBFC
Founded
PNB
1894
LIC
1989
Headquarters
PNB
New Delhi
LIC
Mumbai
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 20 Lakh business loan for 5 years at each bank's lowest rate.
PNB
LIC
Savings: Choosing PNB saves you approximately ₹1,146 per month, or ₹68,760 in total interest over the loan tenure.
Feature Comparison
Key features offered by PNB and LIC for business loan.
| Feature | PNB | LIC |
|---|---|---|
| PNB Pragati scheme for MSME | ||
| MUDRA loans available | ||
| Working capital for traders | ||
| Agriculture business loans | ||
| Property-backed business loans | ||
| Competitive NBFC rates | ||
| Quick processing | ||
| Pan-India presence |
PNB Pragati scheme for MSME
MUDRA loans available
Working capital for traders
Agriculture business loans
Property-backed business loans
Competitive NBFC rates
Quick processing
Pan-India presence
Which Is Better — PNB or LIC?
It depends on your priorities. Here is a quick guide.
Choose PNB If...
- Lower starting interest rate (10.35% vs 11.5%)
- Higher max loan amount (Rs 5 Cr vs 3 Cr)
- Longer max tenure (7 yrs vs 5 yrs)
- Government-backed (public sector bank)
Choose LIC If...
- Trusted brand with strong business loan offerings
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
PNB Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
LIC Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 15 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about PNB vs LIC business loan.
Which bank has a lower business loan interest rate in 2026 — PNB or LIC?
PNB currently offers a lower starting rate of 10.35% p.a. for business loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum business loan amount I can get from PNB vs LIC?
PNB offers a higher maximum loan amount of up to Rs 5 Cr. PNB offers up to Rs 5 Cr while LIC offers up to Rs 3 Cr for business loan.
Which bank charges a lower processing fee for business loan — PNB or LIC?
PNB charges a processing fee of 1.00% (min Rs 5,000), while LIC charges 1.50% (min Rs 10,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose PNB or LIC for business loan in 2026?
The best choice depends on your specific needs. PNB offers rates from 10.35%–14.75% with a max tenure of 7 years, while LIC offers 11.5%–15% with 5 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a business loan from both PNB and LIC?
Yes. Money Matrix Hub is an authorised DSA partner for both PNB and LIC. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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