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PNB Housing Finance Land Loans

Many prefer to build their own dream house rather than buying from real estate dealers. Constructing your own house gives a sense of satisfaction as you can build according to your convenience and comfort. One must need a piece of land to build a house. When you do not have a huge amount of money to purchase a land, you can always look up to banks for help. Most of the public and private banks provide plot loans for construction.

A Land loan or plot loan as the name suggests is a loan provided by banks and NBFCs to purchase a plot. PNB Housing Finance, one of the popular housing finance companies in India, provides plot loan for construction to varied customers. If you are looking for a plot loan, PNB Housing Finance could be the best option.

What are the advantages of taking a plot loan from PNB Housing Finance?

  • The bank has branches across the country
  • Excellent customer service
  • Multiple repayment options
  • Outstanding post disbursement services
  • Transparent working system

Key Features of PNB Housing Finance Plot Loan

Loan AmountNo ceiling on the upper limit
Loan Tenure The maximum loan tenure is 30 years
Margin30% of loans above INR 75 Lakhs
Pre-Payment ChargesNil
EligibilityMaximum of 70 years of age at the loan maturity

Features of PNB Housing Finance Plot Loans

PNB Housing Finance provides land loans for the purchase of land to build your dream home for both salaried/self-employed people. After the purchase of land, the person must begin construction of their home within 5 years from the date of land loan disbursement.

Purpose: Loans provided for plot purchase which has to be used for construction of houses.

Loan Amount: No ceiling on the upper limit, you can get up to 75% of the value of the property for loans higher than INR 75 Lakhs

Margin: It differs for various loan amounts, for up to INR 25 Lakhs –10%, below INR 75 Lakhs – 20% and above INR 75 Lakhs – 30%.

Collateral: Any equitable mortgage to the plot or any other security accepted by the bank

Repayment Period: Minimum of 3 years and maximum of 30 years

Eligibility Criteria for PNB Housing Finance Plot Loans

The applicant should have the following eligibility criteria to get a plot loan

Age Limit: The borrower should not be above 70 years of age at the time of loan maturity

Nationality: The applicant should be an Indian resident to get the loan.

Employment: The borrower must be a salaried or self-employed individual with good repaying ability.

PNB Housing Finance Land Loan Interest Rate and Other Charges

Following is the rate of interest rate charged on PNB plot loans

Floating Rate

SalariedSelf Employed ProfessionalsSelf Employed Non-Professionals
9.85%-11.25%9.85%-11.25%9.99%-11.75%

Fixed rate

Salaried & Self-Employed Professionals

Fixed for 1 yearFixed for 2 yearsFixed for 3 yearsFixed for 5 years
10.00% – 11.25%10.00% – 11.25%10.00% – 11.25%10.25% – 11.25%

Self Employed Non-professionals

Fixed for 1 yearFixed for 2 yearsFixed for 3 yearsFixed for 5 years
10.20% – 11.75%10.20% – 11.75%10.20% – 11.75%10.50% – 11.25%

Prepayment:No charges are levied on prepaying the plot loan.

Repayment Options

PNB Housing Finance Plot loan can be repaid through post-dated cheques or Electronic Clearance System (ECS).

Difference Between a Plot Loan and Home Loan

Both land loan and home loan are often confused for its similarities in terms and conditions. Find below some of the differences between both the loans.

Difference 1: A home loan is provided for a property that is built, under construction and or undergoing restoration and extension, while a land loan is predominantly given for purchase of a piece of land or plot

Difference 2: The Loan to Value ratio for a home loan is about 80%, for loans above 3 lakhs the LTV is 90%; while the LTV for a plot is 50-70%

Difference 3: The tax benefits which are available on a home loan are not available on the land and plot loans

Difference 4: Home loans tend to be longer up to 30 years even, while the land plot loans are extended up to 15 years

Difference 5: Another factor that is considered while taking up a land loan is the presence of 2-5% of foreclosure charges that are absent in a home loan. These are the primary differences between a home loan and a land loan.

Credit Score and Land Loan

For any loan applicant, a credit score is an important facet that is considered by banks and other lenders when they are about to make lending decisions for any loan including your land loan. It is the onus of the applicant to maintain a good credit health especially for those who are looking to take big ticket and medium to long term loans, the presence of a poor credit score or no credit score could lead to unwanted situations such as unfavourable terms or sometimes even rejection.

To avoid loan rejection, learn more about your credit health, start with your free credit score.

PNB Housing Finance Land Loan Documents Required

List of papers/ documents applicable to all applicants:

  • Duly filled-in application
  • Age proof – PAN card, Passport or any other certificate from staturory authority
  • Address proof – Passport, Driving license, Ration card, Telephone bill etc.
  • Educational certificates
  • Processing fee cheque in favour of PNB Housing Finance Ltd
  • Property documents

For Salaried:

  • Pay slip of last 3 months
  • Form 16 for last 2 years
  • Bank statement of last 6 months

For Self-Employed:

  • Proof of business operations and business profile
  • Income tax returns for the last 3 years
  • Bank statement for the last 12 months

Land Loan EMI Calculator

Customers can use the home loan EMI calculator to know how much EMI they will be paying each month. Customer can make use of the CreditMantri Home Loan EMI calculator and the lender Home Loan EMI calculator.

The importance of this is that customers will know how much EMI they will have to pay based on their loan requirement. This helps them to plan far ahead.

CreditMantri’ s Home Loan EMI Calculator and lender Home Loan Calculator are among the best and probably the easiest ways to compare various home loan offers and choose the loan best suited to your requirements. Using the Home Loan EMI Calculator, you get a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.

PNB Housing Finance Land Loan FAQs

1. How can I apply for a land loan from PNB Housing Finance?

You can either apply online or at the nearest PNB Housing Finance branch.

2. How long will it take for PNB Housing Finance land loan approval?

It will take at least 1 week for the bank to do their due diligence and verify all the documents.

3. What is the maximum loan amount I can get from PNB Housing Finance Land Loans?

The maximum loan amount from PNB Housing Finance land loans is 90% of the land value

About PNB Housing Finance

Head quartered in Delhi, PNB Housing Finance is a public-sector housing finance company promoted by Punjab National Bank. It is a 30-year-old company with branches and offices in most of the major cities in India. The company provides housing loans & loan against property as a part of its product portfolio and holds the license to accept public deposits.

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