Punjab National Bank Home Loan

PNB Home Loan

Punjab National Bank, or PNB as it is popularly known, boasts of 120 years of fruitful experience and an enviable 6081 branches across the country, including 5 overseas branches. The bank counts ‘PNB Flexible Housing Loan’ as an important product in its arsenal. The bank ‘banks’ on its traditional image, strong banking fundamentals, nationwide presence and immaculate brand image to woo its target customers. And, considering the impressive returns that the bank is registering year-on-year, the plan is working!

Features of Punjab National Bank Home Loan

The following features are the highlights of the PNB Home Loan:

1. This loan can be used for the construction of a new house/flat/apartment, purchase of an existing house, land for construction of the house, repairs and renovation of existing building and furnishing.
2. Choose between floating and fixed interest rates.
3. Repayment tenure ranges up to 30 years (Also, EMI of just Rs.896/lakh- Conditions Apply).
4. Fast, transparent process with zero hidden charges.
5. Enjoy flexible or graduated repayment option.
6. Shift your existing home loan from another insurer to PNB and enjoy lower EMI.
7. Loan amounts are disbursed as per the following structure-
• For purchase/construction/additions to house- Depends on requirement.
• For home renovations/repairs- Rs. 25 lakhs (max)
• For furnishing the house- Rs. 5 lakhs (max)
• For purchasing a new plot of land- Rs. 50 lakhs (max)

PNB Home Loan Eligibility:

The eligibility criteria set for the acquisition of a home loan from PNB are as simple and customer centric as possible, amounting to the following-

• This loan can be applied for by both individuals as well as joint owners.
• The applicant(s) must not be younger than 18 years and older than 70 years at loan maturity.
• The applicant(s) must have an established, regular source of income. In case of co-applicants like spouse, children and/or parents, their individual income can also be added.
• For flexible home loan- Applicant must be an existing home loan borrower, not older than 50 years and must have availed the existing home loan as per PNB’s Housing Loan schemefor the public.

Documents Required for PNB Home Loan:

Next, when applying for the home loan, the following documents must be kept ready for verification-

1. Completed application form with photographs.
2. Proof of Identity: Passport, PAN Card, Driving Licence, etc.
3. Proof of Residence: Passport, Driving License, Telephone Bill, Ration Card, Voter’s ID, etc.
4. Proof of Age: Passport, PAN Card, Driving Licence, SSLC marks card, Voter’s ID, etc.
5. Educational Qualifications: Documents in this regard, latest degree.
6. Income Proof: Salary slips from the last 3 months, Form 16 for the last 2 years, Last 6 month’s bank statement detailing the salary account. For Self Employed- Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly audited by a Chartered Accountant, Last 12 month’s bank account statement detailing for self and business.
7. Copies of title documents of the property and the approved plan.

Punjab National Bank (PNB) Home Loan Interest Rate:

Currently, PNB Home Loan is one of the popular home loan products available in the Indian market. One of the fundamental reasons for its enduring popularity is the PNB home loan interest rate that is comparable to some of the most competitive available options. You can avail this loan at the interest rate of 8.65% to 8.75% over a maximum repayment tenure of 30 years.

The interest rates for various home loan products of PNB are as follows:

Punjab National Bank MCLR:

PNB’s Marginal Cost of Funds-based Lending Rate (MCLR) with effect from 01.01.2017, are as outlined below:

PNB Pride Housing Loan For Government Employees

The PNB Housing Loans for Government Employees is a scheme that has been set up to ensure availability of Housing Loans at attractive interest rates for all government employees so that every government employee can afford to buy a house for himself/herself.

• The government employee will be able to avail this loan to construct a house or flat, to purchase a house or flat, to purchase a unit in an ongoing residential project from Housing Boards/Development Authorities/Co-operative Societies/Approved Private Builder.
• To carry out additional construction on constructed property, to repair or renovate an existing construction, to meet escalation of prices during the construction of a house/flat, to purchase a plot of land to build a house/flat.

PNB Housing Loans for Government Employees Eligibility and Documentation:

Individuals or Joint owners who are permanent employees of the central/state governments, defence personnel, paramilitary forces are eligible to avail the PNB Housing Loans for Government Employees.

Listed below are the various documents the applicant will need to furnish to avail this category of home loan and Punjab National Bank:

• Completed application form with photographs.
• Proof of Identity: Passport, PAN Card, Driving Licence, etc.
• Proof of Residence: Passport, Driving License, Telephone Bill, Ration Card, Voter’s ID, etc.
• Proof of Age: Passport, PAN Card, Driving Licence, SSLC marks card, Voter’s ID, etc.
• Educational Qualifications: Documents in this regard, latest degree.
• Income Proof: Salary slips from the last 3 months, Form 16 for the last 2 years, Last 6 month’s bank statement detailing the salary account. For Self Employed- Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly audited by a Chartered Accountant, Last 12 month’s bank account statement detailing for self and business.
• Copies of title documents of the property and the approved plan.
• Proof of Employment: The individual will need to carry some form of identification to prove that he/she falls within the eligibility criteria to avail PNB Housing Loans for Government Employees.

Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All

The PNB Housing Loan for Public – Pradhan Mantri Awas Yojana – Housing For All is a scheme set up by the Punjab National Bank to ensure availability of housing finance to economically weaker sections of society and low income groups at low interest rates and charges with the objective of providing housing for all in India. The scheme will allow the recipient to use the funds for the construction of additional rooms, kitchen, toilet etc. It also allows the recipient to utilize the funds to purchase a new house or flat or to start a new construction. This scheme will cover all 4041 Statutory Towns as per the Census of 2011.

Features of Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All

• Under the Pradhan Mantri Awas Yojana scheme the beneficiaries will receive a subsidy between Rs.1 lakh and Rs.2.3 lakh from the central government treasury. This subsidy will allow people from Low Income Categories and Economically Weaker Sections of society to afford housing.
• From the date of disbursement of the loan for 15 years the beneficiary will enjoy a subsidized interest rate of 6.5%.
• The subsidy will be available for loans up to Rs.6 lakhs. Loan amounts higher than Rs.6 lakh will not be subsidized.
• This scheme is targeted towards female applicants, therefore, female applicants will get houses allotted faster.
• Differently abled and aged applicants will receive preference for allotment of ground floor houses.
• The maximum subsidy amount under this scheme will be Rs.2,20,187.
• The Net Present Value of the subsidy on interest will be calculated at a discounted rate of 9%.
• This scheme has no charges for processing or documentation.

The Margin (Borrower’s contribution has been given in the table below)

Loan Disbursement

The disbursement of the loan will take place as per the existing housing loans offered to the public. The loan disbursement should not exceed 4 instalments depending on the progress of construction, the bank will receive the subsidy from the National Housing Bank in 4 instalments.

Security

The borrower will need to provide an equitable security or a registered mortgage of the property in question.

Loan Repayment

The repayment can be made by the borrower up to the age 70 or 15 years, including the moratorium period, whichever is earlier.

Moratorium

• For construction purposes the moratorium period will be up to 18 months from the first disbursement of the loan or till the completion of the construction, whichever is earlier.
• For renovation or repairs being made the moratorium period will last up to 6 months or till the completion of the renovation, whichever is earlier.
• For the purchase of a ready built house/flat or plot of land the moratorium period will last up to 3 months or till the date of possession, whichever is earlier.

PNB Gen-Next Housing Finance Scheme For Public

The PNB Gen-Next Housing Finance Scheme For Public is a scheme set up by the Punjab National Bank to provide housing finance for people with higher incomes such as IT Professionals, Government employees, PSUs, etc. to provide them with decent housing options. This loan may be availed to purchase ready to move houses or flats, for the construction of a house, for the purchase of an under construction flat from an approved builder.

Eligibility to Avail PNB Gen-Next Housing Finance Scheme For Public

• The individual should be a salaried employee, with a minimum of three years experience. The co-borrower should also be a salaried employee.
• The maximum age of the borrower at the time of disbursement should be 40 years. If there are multiple borrowers whose income has been taken into consideration to arrive at the eligible loan amount, at least one of the borrowers should be 40 years of age and the other may be a maximum of 45 years of age at the time of disbursement.
• The minimum net monthly income of the borrower should be Rs.35,000.
• (Net Monthly Income=Gross Salary-Statutory Deductions such as Income Tax, Provident Fund etc.)

Features of PNB Gen-Next Housing Finance Scheme For Public

• The quantum of finance will be 1.25 times the loan amount, which will be calculated according to the regular housing loan method, this is subject to maintenance of the prescribed Loan to Value (LTV) ratio.
• The minimum loan amount a borrower may avail under this scheme is Rs.20 lakh.
• There is no ceiling on the maximum loan amount, it is need-based. This is subject to the maintenance of the LTV ratio and the repayment capacity of the borrower.

Margin

Charges such as stamp duty, registration charges etc. shall be charged towards the borrower and not considered towards the margin money.

Loan Repayment

• The repayment period of PNB Gen-Next Housing Finance Scheme For Public is 30 years.
• The borrower will make monthly payments to service the loan.
• During the moratorium period only the interest on the loan will need to be serviced.
• The EMIs for the 120 months after the moratorium period will be at the sanctioned limit for 360 months.
• During the remaining period EMIs to fully amortize the remaining amount will need to be paid.

Moratorium Period

• For flats under construction from approved builders the moratorium period will last 36 months plus the remaining period till the date of possession, this will last a maximum of 60 months.
• In all other circumstances the moratorium period will last 36 months.

Insurance

It is mandatory to get a term insurance policy equal to the loan amount. The borrower may choose to finance the cost of premium of such a loan. The cost of premium will be over and above the extent of the loan.