Punjab National Bank Home Loan

• PNB Housing Finance Home Loan Features
• PNB Housing Finance Interest Rates
• PNB Housing Finance Home Loan Eligibility
• PNB Housing Finance Home Loan Schemes
• PNB Housing Finance Home Loan Types
• PNB Housing Finance Home Loans for NRI or PIO
• How to Apply For a PNB Housing Finance Home Loan
• Document Checklist for PNB Housing Finance Home Loan

 

Introduction

Punjab National Bank is one among India’s public sector banks operating with its headquarters in New Delhi. PNB was established in the year 1894. As per the statistics of 2019 the bank has over 7000 branches with over 600 employees well – trained and experienced to make the process of housing loans easy, quick and smooth. The bank also has branches in United Kingdom, Dubai, Almaty, Hong Kong, Kabul, Kowloon, Oslo, Sydney and Shanghai.

PNB offers a variety of financial facilities like home loans. You may also avail loans to build a new home on a property which you already own.

PNB Housing offers comprehensive and easy processes of availing housing loan schemes and repayment of the said loans. They offer various different repayment schemes that will fit the requirements and needs of the customer in accordance with their income and financial status.

PNB also allows you to apply for a housing loan scheme as an individual or jointly with others as co – applicants. Any other proposed property’s owner in question, will have to be a co – applicant on the loan scheme.

PNB Housing Finance also offers “Credit Link Subsidy Scheme” or the Pradhan Mantri Awas Yojana for the Economically Weaker Sections (EWS) of the society.

 

PNB Housing Finance Home Loan Features

PNB home loans offer various features like:

• A wide array of home loan facilities like Home Purchase Loans, Home Improvement Loans, Plot Loans and Home Extension Loans.
• Loans can be availed to purchase a newly built flat or house from the Development Authorities, Housing Boards and Approved Housing Projects.
• Loans can be availed to purchase land for the purpose of building a house.
• Enhancement in amount provided under the loan, in case of escalation of costs.
• Home loans can be availed for purchasing property in an existing Apartment Owners’ Association, Co – operative Society, and Development Authorities and also for homes built privately.

PNB Housing Finance also offers instant home loans, which can be availed in 3 minutes.

The house or property itself will act as the security towards the housing loan.

 

PNB Housing Finance Interest Rates

The Factors Determining PNB Housing Finance Home Loan Rates:

• Loan Amount : The rate of housing loan from PNB Housing Finance depends on the loan amount that a borrower applies for. Higher the amount of loan, lesser the rate will be.
• Borrower’s Salary : PNB Housing Finance’s rates depend on the borrower’s varying income. Higher the borrower’s salary, lesser the rate will be.
• Type of Loan : Different rates are applied by PNB Housing Finance under different schemes and under their fixed and floating rates. It also offers different rates for female borrowers.
• Existing Customer of Bank : PNB Housing Finance offers its lowest rates to borrowers that are existing bank account holders with them as they have a past relationship with each other.

PNB Housing Finance Ltd. Home Loan Interest Rates as of 2019

Loan Amount (in Rupees)	Interest rate	Interest rate (for female borrowers)	Overdraft
Up to 25 Lakh	8.85 %	8.65 %	9.85 %
INR 25 Lakh – INR 50 Lakh	8.85 %	8.65 %	9.85 %
INR 50 Lakh – INR 75 Lakh	8.85 %	8.65 %	9.85 %
Above INR 75 Lakh	8.90 %	8.70 %	9.85 %

 

PNB Housing Finance provides various repayment structures to accommodate your needs. They also have an experienced staff to make the loan process easy and transparent one. You can initiate the process by a single click by going online to their website.

Let us now take a look at the Eligibility Criteria for availing Home Loans from Punjab National Bank.

 

PNB Housing Finance Home Loan Eligibility

The loan amount will be approved by PNB Housing Finance only if the borrower meets the eligibility criterion it has in place.

In case the construction of the house or flat is already completed, the loan amount will be provided by PNB in lump – sum. On the other hand, if the construction of the house or flat is still underway, the loan amount will be disbursed in stages. PNB Housing Finance expects the borrower to contribute a certain percentage of the total amount of price of the house or property.

Different applicants come with different needs and expectations and PNB Housing Finance Ltd understands this completely. They have a simple list of criteria to determine the Borrower’s eligibility.

 

Following are the eligibility requirements for PNB Housing Finance housing loans.

Eligibility Criteria	PNB Home Loan
Eligible Age of borrower	21 – 70 years
Minimum eligible income	Rs. 25,000 and above
Loan amount eligibility	Rs. 10 Lakh to Rs. 10 Crore

 

PNB Home Loan eligibility for salaried applicants is:

• Age Limit: From 21 years to 70 years.
• Maximum Loan Amount Granted: Rs. 10 crore
• Equated Instalment for monthly payment per lakh rupees: Rs. 823
• Interest rate linked to PLR: 9.05% per annum onwards.

 

PNB Home Loan eligibility for self – employed applicants is:

• Age Limit: From 21 years to 70 years.
• Maximum Loan Amount Granted: Rs 10 crore.
• Equated Instalment for monthly payment per lakh rupees: Rs 823
• Interest Rate linked to PLR: 9.05 % per annum onwards.

The approval of home loans from PNB is based on various factors like the applicant’s age, net monthly income, and the total property value involved, the CIBIL score and the fixed obligation to income ratio.

 

Eligibility Based On Age

The applicant’s age plays a key role in determining the eligibility and repayment capacity for a home loan. In order to be eligible for PNB Housing Finance home loan, the applicant must be at least 21 years of age at the time and the maximum age of 70 years is eligible, for both self – employed as well as salaried applicant(s).

Younger the applicant, longer is the time period available to repay the loan, and hence, the higher is the home loan amount eligibility. PNB Housing Finance offers 30 years as the maximum period for home loans. This means both self – employed and salaried applicants may get a maximum 30 year period to repay the loan in total.

 

Eligibility Based On Income

The net monthly income (after deductibles like PF, gratuity etc.) of an applicant plays a vital role in determining the loan eligibility. This indicates how much of the home loan amount an applicant can repay every month after the meeting the costs of living expenses, depending on the standard of living.

For example, say an applicant earns Rs. 25,000 a month and the value of the house he or she is buying is Rs. 40 lakh. Now, considering that PNB Housing Finance offers an interest rate of 9.05 %, of the amount of loan the applicant will be eligible for is Rs. 35.99 lakh to Rs. 40.21 lakh, depending on the age.

In another instance, an applicant with a salary of Rs. 75,000 is eligible for a sum of Rs. 71.99 lakh to Rs. 80.42 lakh for the same property as first applicant and at the same rate, depending on the age.

Thus, you can see, the higher the net income of the applicant, the higher amount of the loan that can be granted to him or her. The amount of loan can be increased by two individuals co – applying for the home loan, as the net income value rises.

PNB Housing Finance will do a background check on the applicant in the nature of employment, salaried or self – employed, as well as the company and sector in which he or she is working. It will also look at the experience of applicant in years and the income stability.

 

Eligibility Based on Value of Property

Home loans from any financial establishment will not be to the full property value, and PNB is the same. PNB has certain parametres on the maximum home loan eligibility, depending on the property’s value. Loan – to –v alue (LTV) is the ratio of the amount of loan to be granted to the property’s value.

If the property’s value is less than Rs. 30 lakh, the maximum loan amount which can be granted is 90 % of property’s value. If the property value is between Rs. 30 lakh and 75 lakh, LTV is 80 % and for property value above Rs. 75 lakh LTV is 75 %.

 

Eligibility Based on CIBIL Score

The CIBIL score or credit score of the applicant is another important factor determining eligibility of home loans from PNB Housing Finance. CIBIL score is basically the applicants track record of past credit transactions and record in relation to past lenders.

PNB will look at the full CIBIL report of the applicant, which will inform them of his or her past loan and repayment record. Higher CIBIL score increases the applicant’s chances of getting approval for PNB home loan, while low score will decrease chances of approval.

PNB Housing Finance has a minimum eligibility CIBIL score for loan approval. A candidate is only eligible to apply for a loan scheme from PNB if they have a minimum CIBIL score of 650.

 

PNB Housing Finance Home Loan Schemes

India is a country of hugely diverse people. A single home loan scheme will not necessarily work for everyone. Different people have different means and resources at their disposal and hence, it is inevitable that financial institutions offer different schemes that best fit their needs and abilities.

PNB Housing Finance is no different; they understand this need for varying schemes for different people and so offer a variety of home loan schemes. The starting interest rate of the housing loan schemes is 8.60 %.

Take a look at the different home loan schemes and interest rates on offer by PNB Housing Finance:

 

PNB Home Loan Scheme	Interest Rate (per annum)
PNB Unnati Loan	8.90 % and onwards
Plot Loan	8.90 % and onwards
Home Loan	8.60 % and onwards
Home Improvement loan	8.90 % and onwards
Home Extension loan	8.90 % and onwards

 

Advantages of PNB Housing Finance Loans

• PNB offers funding of up to 90 % of property’s value in question
• It also offers an increase in the amount of the loan in case costs of construction increase
• They provide customized eligibility and repayment programs to fit the needs of the customer
• The borrower can avail Income Tax benefits
• PNB provides an easy, ethical and transparent loan process

 

PNB Housing Finance Home Loan Types

PNB Housing offers loan schemes for the purchase of property or even construction of property. They provide a wide array of services to meet the needs of their customers’ home loan needs. They have made the process of applying for housing loan schemes easy, all with good post disbursal services as well. They have in place a robust pan Indian branch network.

 

PNB Home Construction Loan

PNB offers home loan schemes for customers who wish for self – construction of residential property. This housing scheme is exclusive to customers who already own land property and simply require funding for the construction expenses.

 

PNB Home Extension Loan

PNB Housing offers home loan extension loan schemes for customers who already own a house, but wish to add more space to it for their growing family requirements.

 

PNB Home Improvement Loan

PNB Housing offer loans for customers who wish to make improvements and upgrade their homes. This loan schemes covers the expenses of the following nature;

• Upgradation of the home
• Renovation of a property already owned by customer
• Repair of house
• Renovation of property
• Water – proofing
• Electrical work and Plumbing work
• Woodwork
• Paint work (external and internal)

 

Unnati Housing Loan Scheme

India is a country that is home to countless hard – working individuals. Every person dreams of living in a house that he or she owns, even those individuals who earn a fixed income every month; or those who have completed their education and hold a degree or diploma and are now focusing on buying a home of their own.

 

PNB Unnati Housing Loan Scheme is made available to those individuals who:

• Individuals who hold a Professional Degree, Diploma, Post – Graduate Degree etc.
• Individuals employed at local and stable businesses like restaurants, retail shops, jewellery shops, petrol pumps etc.
• Individuals earning a fixed income of INR 10,000 per month. In case of co – application, combined income is also valid.

 

Let us take a look at some of the aspects of the Unnati home loan schemes:

• Loan Amount

PNB Housing Finance offers loan amounts up to INR 25 Lakhs for salaried clients, which will cover up to 90% funding of the market value of property.

It offers up to Rs. 25 Lakhs for self – employed clients, which will cover up to 67 % of funding of the market value of property.

• Interest Rate

PNB Housing Finance offers an interest rate of 8.90 % per annum for salaried and self – employed professionals; while for non – professional self – employed individuals and businessmen an interest rate of 8.95 % per annum.

 

Let us now take a look at the documents required for the Unnati Housing Loan Scheme:

• The filled application form with a photograph of client.
• Age Proof (PAN Card, Passport, etc.)
• Proof of Residence ( Driving License, Telephone bill, Passport, Ration Card or any other document from Statutory Authority)
• Latest salary certificates for last 3 months for salaried clients; certificate and business profile and proof of business existence for self – employed clients.
• Form 16 of last 2 years for salaried client; Income Tax Returns for the last 2 years of client and business for self – employed clients.
• Bank statement of last 6 months (salary account); bank account statements of last 6 months (self and business account), for self – employed clients.
• Processing fee cheque addressed to ‘PNB Housing Finance Ltd.’
• Photocopy of approved plans, Title document of property.

 

PNB Housing Finance Home Loans for NRI or PIO

PNB Housing Finance offers Non – Resident Indians (NRIs) and Person of Indian Origin (PIOs) home loan facility if they wish to buy homes in India. This niche market is catered to by PNB, offering loans for purchase, repair, construction and home improvement of residential property. It also has a team of dedicated employees who are well – experienced in this market in order to assist and guide you.

They offer quick and prompt service for quick approval and disbursal of loans.

 

PNB has eligibility criteria for availing of NRI home loans which are as follows:

Age Limit	Should not be more than 70 at loan maturity
Nature of Employment	Salaried, self – employed, professionals and non – professionals
Residence type	Should be a PIO holding Indian passport with NRI status or Overseas Citizen of India (OCI)

PNB Housing Finance requires the customer to contribute at least 20 % of property’s value themselves for loan to be granted. Once that 20 % is paid by customer, the amount is paid in lump – sum to seller of property. In case of purchase of property under construction, the loan is disbursed in steps, depending on the progress of said construction.

The repayment is to be done through EMIs over a maximum period of 15 years via Post – dated Cheques or Electronic Clearance System for home purchase or construction, and 10 years for home improvement loan. A client wishing to stay abroad, a person with Power of Attorney can delegate on the NRI loan on his or her behalf.  PNB offers a comprehensive service with door step services for fast and easy approval and disbursal of the loans.

 

Home Loan Eligibility for NRIs or PIOs

More than 30 million Indians reside outside of the country. Non – Residential Indian (NRI) or Person of India Origin (PIO) is a special status given to Indian citizens who have resided outside the country for more than 182 days in a year. This category of the population resides abroad for various reasons like employment, education and other personal reasons.They may still want to buy property in their homeland. PNB Housing Finance offers them a chance to fulfil their wish by offering home loans to NRIs without them having to necessarily travel to India.

PNB has a comprehensive processing system in place to take care of all the administrative needs of such schemes.

The NRIs may also allot their Power of Attorney to another person, which gives that person the authority to complete formalities on the client’s behalf. This makes the process quite simple. The client can then keep an eye on the progress from wherever they are.

 

What are the requirements to avail this scheme?

The following are the minimum requirements in order to avail this scheme from PNB;

• The individual must be a legally recognised NRI, an Overseas Citizen of India (OCI) and or Person of Indian Origin (PIO).
• The said individual must be among those named in the home loan application.
• The individual must be at least one part of property’s co – applicant or co – owner.

 

Let us now look at the eligibility criteria and certain aspects of the NRI home loan scheme:

Employment Duration	Minimum 1 year experience in foreign employment
Loan Tenure	Loan repayment period is max. 15 years for home purchase or construction; 10 years for home improvement
Loan Amount	Determined based on income, age, occupation etc.
Interest rate	8.90 % and onwards
Processing fee	1 % of loan amount + applicable tax
Re – payment method	Electronic Clearing System (ECS) or post – dated cheques
Late payment fees	2 % per month on overdue payment
Nationality of applicant	Indian Citizen
Resident type	NRIs PIOs

All individuals who meet the above criteria are eligible to apply for housing loans from PNB Housing Finance.

 

What are the required documents?

The following documents are required to be presented in order to avail NRI housing loans;

• Filled Application form with photograph of applicant
• A copy of Passport or PIO card
• A Copy of Work Permit
• Education Qualifications (if applicable)
• Age proof (PAN card, passport etc.)
• Latest salary slips (3)
• Appointment letter of current employer
• Income statement from employer (last 2 years)
• Bank statements of last 6 months
• Photocopy of the Title documents of property, approved plan etc.
• Detailed cost – estimate from architect or Valuer (for construction or improvement loan).

It is recommended that the applicant acquire the approval before deciding on the property to buy. Financial establishments usually do sanction the loans as long as the property is maintained adequately.

Decide on the co – applicant and also the process of Power of Attorney.

The Indian Embassy may also be approached for guidance.

 

In order to finalize the loan process, the following documents are required to be submitted:

Identity Proof

• Valid Passport
• Valid driving license
• Voter ID card
• Aadhar card

Address Proof

• Voter ID
• Valid driving license
• Aadhar card
• Valid passport

Proof of income

• Appointment letter of current employer
• Bank statements of last 6 months
• Salary slips of applicant with his name and date of joining etc.
• Credit assessment by a reputable firm.

Property documents

• Title deed
• Blueprints of the site, approved by local authorities
• Buyer agreement letter
• Payment receipts to developer
• Cost estimation by architect and civil engineer

Miscellaneous documents

• Valid resident visa proof
• Occupational history
• Processing fee cheque to ‘PNB Housing Finance Ltd’
• Filled out form of housing loan with photographs of applicant(s)

 

How to Apply For a PNB Housing Finance Home Loan

Buying a home is a big step in anyone’s life. It cannot be taken lightly and has to be a well thought out decision. PNB Housing Finance offers a well – rounded support with a safe, secure, easy and transparent process of availing a housing loan.

Take a look at the comprehensive layout of the process to be followed for a housing loan:

 

Check Your Eligibility

The first step is to make absolutely sure you are eligible for a housing loan before starting the process. Financial institutions consider various aspects of your life before granting you a loan. Make sure you meet those criteria and are valid to apply. Factors like age, income, credit history, your dependents etc. should be well – organized as they will be a part of the housing loan.

Once you are satisfied you meet the eligibility criteria, you can proceed to apply for a loan.

 

Apply for the Loan

To apply for a loan, locate your nearest PNB Housing Finance branch and pay a visit or you can also go online and visit their website. You can download the form online and fill it to bring to the bank. You can use the branch locator on the website to mark the branch nearest to you as well.

You will need to carry the following documents with you along with your loan form.

• Identity proof
• Proof of residence
• Property registration documents
• Income tax returns of previous 3 years
• Bank statement of the last 6 months

Proceed to the bank with all these documents, where you will be attended by the resourceful staff of the PNB Housing Finance Ltd. They will guide you through the process of the housing loan as well.

We have compiled an ultimate checklist for you so that you do not stutter at any point during the initial stages of the loan application.

Here are the common documents you need:

Address proof

• Registered rent agreement
• Electricity bill of the last three months
• Valid passport

Appointment letter from the place of employment (required if working at the place for less than a year)

 

Document Checklist for PNB Housing Finance Home Loan

•  Form 16 (Income Tax Filings) going back 2 years
•  Mandatory 3 month salary slip
•  Bank statement form the last 6 months

Identification proof

•  Valid passport
•  Driving license
•  PAN card

These are all the common documents that you will be required to carry and submit. Now let us take a look at the documents required specifically for the housing loan purpose:

Filled out loan application form	Enclosed with passport size photograph
Income proof	Consisting of salary slips, bank statements of the last 1 year and Form 16
Proof of employment continuity	A letter from the Human Resources department and an appointment from the place of employment
Photo proof	Passport size photo, driver’s license, voter ID, PAN card
Relevant property documents	Enclosed with sale deed, Katha, transfer of ownership
Proof of address	Sale deed and rental agreement
Financial documents for self- employed individuals	Income tax returns going back 2 years, approved by a CA
Financial documents for self – employed non – professionals	Income tax returns going back 2 years approved by a CA

 

However, there are some additional documents for those applicants who are self – employed.

Applicants falling under this category should have the following documents as well;

• Business existence proof

Company registration license, shop establishment act and a 3 year old SARAL form copy

• Income proof

Income tax returns from the last 3 years, profit and loss account copy, income computation, audit reports and company balance sheets

• Office address proof

Property documents and the utility bill

• Office ownership proof

Property documents, utility bill and the maintenance bill

• Residence address proof

Registered rental agreement, utility bill and the license with a single enclosed passport-sized photograph

That is the complete list of the documents you will require to initiate the process of your housing loan. So now you are ready to kick start the process of buying your own dream home or making changes to your home all with the financial assistance of PNB Housing Finance.

Not only does PNB offer numerous varieties of housing loan schemes, they also construct repayment structures that will complement your ability to pay back the amount of  loan without having to break the bank. PNB is one of the leading financial establishments that have in place a well-organized and experienced staff and experts that will do all they can to help you to understand the loan schemes and go through the process.