PNB Housing Finance Limited is a subsidiary of Punjab National Bank and is a registered housing finance provider with National Housing Bank, NHB. PNB HFL was incorporated under the Company’s Act 1956 and started its operations in the year 1988. The company has over two decades of housing loan experience and leverages its wide network of branches to provide financial assistance to people from across the length and breadth of the country. PNB HFL entered into a partnership with Destimoney Enterprises Private Limited, in the year 2009.
The bank provides financial products and services ranging across a wide spectrum. These include home loans, non-home loans and deposits. Programs from PNB HFL have been rated well by the rating agency CRISIL; out of these the fixed deposits by the company have been rated FAAA, which signifies a high level of trust and stability. PNBHFL provides housing loans to individuals as well as to corporate bodies for construction, repair and purchase of land and house.
Fixed deposits accounts held with the company provide attractive returns to depositors over varying periods - shot, medium or long-terms.
The following entities are eligible to get a Fixed Deposit from PNB Housing Finance Limited -
Broadly, fixed deposits by PNB Housing Finance Limited are categorized into cumulative and non-cumulative deposits. Cumulative fixed deposits earn an interest rate payable at the end of the maturity period whereas non-cumulative deposits fetch interest that can either be credited to the depositor’s account quarterly or half-yearly.
The minimum amount needed to open a cumulative deposit is ₹ 10000 whereas for non-cumulative deposit the amount required is ₹ 20000.
There is no maximum limit on the deposit amount with which a customer can open a PNB Housing Finance Limited fixed deposit.
PNB Housing Finance Limited offers a minimum deposit tenure of 12 months and the maximum allowed deposit tenure is 120 months or 10 years.
You will need to visit the nearest PNB Housing Finance Limited bank branch with a duly filled application form along with the required KYC documents and cheque or demand draft of the amount to be deposited. Partner HDFC collection centres can also be visited for dropping these documents.
The rates offered on fixed deposits of PNB Housing Finance Limited vary with respect to the deposit tenure. They range between 9.25% per annum and with the option of reinvestment fetch effective yields as high as 14.47%.
Yes. Fixed Deposits which have a locking period of 5 years or more are subject to an income tax rebate under section 80C of the Income Tax Act.
Yes. PNB Housing Finance Limited fixed deposits are taxable and are essentially split up into two categories. First is those deposits for which the account holder has furnished his/her PAN number while the other is for which the PAN number has not been furnished.
In case the interest on the FD is equal to or more than ₹ 5000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 5000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.
Here are a few important points to know about PNB Housing Finance Limited fixed deposits.
Yes. Loans can be availed against fixed deposit; these loans can be availed from either PNB or PNB HFL. The applicable maximum loan amount is 75% of the fixed deposit amount.
Yes. Senior citizens are offered 0.25% more over and above the regular fixed deposit rates.
No. Currently, PNB Housing Finance Limited does not have any credit card related scheme to be offered to its customers.
Yes, PNB HFL allows premature withdrawal of your fixed deposits. But, you can do that only after completion of a minimum lock in period of 3 months. If an individual applies for premature withdrawals after three months and before six months, an interest rate of 4% will be payable to him/her. However, non- individuals will not receive any interest at premature withdrawal. If you opt for premature withdrawal after 6 months and before the date of maturity, both individuals and non-individuals will be eligible to receive 1% lower than the interest rate applicable to a public deposit. The same lock in period of 3 months is applicable to both individuals and non-individuals fixed deposits with Punjab National Bank Housing Finance Limited.
Yes, PNB Housing Finance Limited offers fixed deposits for non-Indian residents as well. As per the Reserve Bank of India regulations concerning the acceptance of deposits from non-resident Indians, PNB Housing Finance Limited accepts deposits from NRIs and persons of Indian origin on non-repatriation basis. PNB Housing Finance Limited accepts NRI fixed deposits for a maximum period of 3 years. NRIs need to have an operative NRO account to invest in fixed deposits with Punjab National Bank Housing Finance Ltd. Both interest rate as well as repayment of deposits will be credited to your NRO accounts. Also, income tax will be deducted at source as applicable to NRO fixed deposits.