A Home loan, as the name suggests, is funds offered by a bank to help an individual purchase a new house/flat/apartment, an old property, land for the construction of the house or renovation of the existing house/property. With PNB home loan, acquire a resource that is immensely customer centric, involving a transparent and quick processing cycle, the goodwill that is associated with a renowned banking organization and importantly, the PNB home loan interest rate that is one of the most attractive in its class.
At least 18 years old
Less than 70 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Earn more than the minimum
Loan capped @ 90% of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years or 70 years of age whichever is earlier
Alternatively add your parents
|Interest Rate||8.65% to 8.75%|
|Processing Fees||Upto Rs 300 lacs-0.50% , Max Rs.20000/- exclusive of service tax
Above Rs 300 lacs - Rs 50000/- exclusive of service tax
|Loan Tenure||30 years or 70 years of age whichever is earlier|
|Pre Closure Charges||Nil|
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!
The following features are the highlights of the PNB Home Loan:
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:
|Category||Floating Interest Rates|
|Self Employed Professionals||8.90% – 9.40%|
|Self Employed Non Professionals||9.10%-9.60%|
|Fixed Interest Rates||Salaried & Self Employed Professionals||Self Employed Non-professionals|
|3 years||8.80% – 9.30%||8.99% – 9.49%|
|5 Years||8.80% – 9.30%||8.99% – 9.49%|
|10 Years||9.10% – 9.60%||9.30% – 9.80%|
PNB’s Marginal Cost of Funds-based Lending Rate (MCLR) with effect from 01.01.2017, are as outlined below:
|MCLR - Tenure||Existing||Revised|
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-
Next, when applying for the home loan, the following documents must be kept ready for verification-
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.
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:
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
The Margin (Borrower’s contribution has been given in the table below)
|Home Loan Amount||Margin|
|For loans up to Rs.20 lakh||10%|
|For loans above Rs.20 lakh and up to Rs.30 lakh||20%|
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.
The borrower will need to provide an equitable security or a registered mortgage of the property in question.
The repayment can be made by the borrower up to the age 70 or 15 years, including the moratorium period, whichever is earlier.
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
Features of PNB Gen-Next Housing Finance Scheme For Public
|Home Loan Amount||Margin|
|Loans up to Rs.75 lakh||20%|
|Loans above Rs.75 lakh||25%|
Charges such as stamp duty, registration charges etc. shall be charged towards the borrower and not considered towards the margin money.
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.
Punjab National Bank, the Delhi based public sector lender has followed suit on RBI’s rate cuts. While the RBI slashed its repo rates by 25 basis points, PNB has also reduced its MCLR or Marginal Cost of Lending Rates and the new rates that stand between 9.3% and 9.75% will take effect from 5th October 2016. The MCLR was introduced on 1st April 2016 as a way to combat the drawbacks on base rate regimes and BPLR systems. While the rates have been slashed by banks like PNB, RBI still remains slightly vary on its implementation.
27th October 2016
Punjab National Bank in a recent announcement revised its MCLR lending rates that came into effect from October 1, 2016. The Marginal Cost of Lending Rates saw a revision the range between 9.05 - 9.60%. PNB fixed the overnight lending rate at 9.05%, the one-month rate at 9.10%, the three-month rate at 9.20% while the six month lending rate stood at 9.25%. For the three-year tenor, the lending rate was kept at 9.30% while the the five year tenor rate was fixed at 9.60%. MCLR rates are usually considered for revision on a monthly basis upon taking into account various factors including repo rates, reverse repo rates and interest rates on other parameters. In accordance with RBI guidelines, banks are supposed to revise benchmark MCLR rates for various tenure periods ranging from overnight to one-year and above.
19th October 2016
Punjab National Bank, has revised its Marginal Cost of Lending rates which are to take effect from 1st October 2016. The revised rates come after the RBI slashed its repo rates and the new rates are set at 9.05% for an overnight tenor, 9.0% for one month tenor, 9.20% for three month tenor and the one year tenor has a rate of 9.30%. Three year tenors have rates set at 9.45% and five year tenors have rates set at 9.60%. According to guidelines set by RBI, the MCLR should be revised monthly and banks are to set a benchmark rate for different time periods.
10th October 2016
Under the MUDRA scheme and Stand Up India scheme, Punjab National Bank organized a series of workshops and seminars. As part of their Monsoon Festival Bonanza for their customers, the bank launched a ‘Loan Mela’ which involves giving out loans to select customers of the bank.
The loans offered under this scheme have a variety of waivers attached to them such as waiver of processing fees and document fees for select loans such as housing loans and education loans. Along with providing loans, the Loan Mela also serves as a workshop which offer educational seminars as well as target other products such as such as term plans and health policies.
25th August 2016
As a part of monthly exercise mandated by the RBI (Reserve Bank of India), PNB (Punjab National Bank) has reduced its benchmark MCLR (Marginal Cost Based Lending Rate) by 0.05 basis points. The new MCLR for one-year loan is now 9.35%, bringing that much needed respite to home loan borrowers.
The MCLR system replaced the conventional base rate system as mandated by the RBI. It was brought in by the apex bank to ensure fair offering in the market where lenders pass on the benefits of rate cuts to consumers more frequently on the basis of market conditions.
10th August 2016
Punjab National Bank, one of the largest public sector banks in the country has set its one year MCLR at 9.40% and the overnight MCLR at 9.15%. Besides these two, the one month MCLR has been set at 9.20%, three months at 9.30%, six months at 9.35%, and three years at 9.55% and five years at 9.75%
MCLR or the Marginal Cost of Funds based Lending Rate is the new system which will be adopted by the banks in India instead of the base lending rate that was prevalent till date. MCLR is more flexible and more accommodating in terms of a lot of external factors that should go in determining the lending rate for a customer. As per the latest ruling of the RBI, all banks are supposed to introduce MCLR for home loan customers.
7th July 2016
The Punjab National Bank announced that it has set its marginal cost of funds based lending rate (MCLR) at 9.40 per cent for one year. In addition to this, the bank has also set MCLR rates for another six tenors. The overnight MCLR rate has been set at 9.15 per cent, 9.20 per cent for one month, 9.30 % for three months, 9.35 per cent for six months, 9.55 per cent for three years and 9.70% for five years. From a stock perspective, shares of Punjab National Bank closed at Rs 76.75, which signified a drop of 2.97% or Rs 2.35 from its previous position of Rs 79.1 on the BSE. With the stock trading lower than its 200 DMA, the market cap of the bank currently stands at Rs 15532.06 crore, while the holdings by promoters, institutions and non-institutions stand at 62.08%, 31.16% and 6.75% respectively.
13th June 2016