Is your Credit Score >750?
- Get low interest loans & Lifetime FREE credit cards
- Get customized Credit Health Report
- Improve your creditworthiness
Punjab National Bank
Punjab National Bank offers home loans for self-employed and salaried individuals. With competitive rates of interest, you can get a loan for as much as 75 lakhs. Under the PMAY (Pardhan Mantri Awas Yojana), you can get even lower interest and subsidy on the loan repayment.
Punjab National Bank MIG I housing loans are for households with income of 6 to 12 lakhs while MIG II loans are for those with household income of Rs.12 to Rs. 18 lakhs. The carpet area allowed in under MIG I is 160 sqm. While that under MIG II is 200 sqm.
About Punjab National Bank Home Loan Interest Rate
- Punjab National Bank Current Home Loan Interest Rate
- Punjab National Bank Home Loan Overview
- Factors that affect interest rate on Home Loans
- Details of charges on Punjab National Bank Home Loans
- Punjab National Bank Home Loan Eligibility
- Punjab National Bank Home Loan Status
- How to apply for Punjab National Bank Home Loan?
- Punjab National Bank Home Loan Interest Rate FAQs
Punjab National Bank Current Home Loan Interest Rate
Punjab National Bank offers home loan to salaried and self-employed individuals to buy, construct or renovate a home. The current home loan interest is as follows:
| Amount of Loan | Rate of Interest |
|---|---|
| Rs 25 lakhs – Rs 75 lakhs(men) | 8.70% |
| Rs 25 lakhs – Rs 75 lakhs (women) | 8.65% |
| Above 75 lakhs (men) | 8.75% |
| Above 75 lakhs (women) | 8.70% |
Punjab National Bank Home Loan Overview
If you are looking to have your own home, you can take a home loan from Punjab National Bank which comes with a long tenure of 30 years. Some of the features and benefits include:
- You can get up to 90% of the value of the property
- Punjab National Bank provides doorstep service – a representative will visit you and help you with the loan application process.
- You can take long repayment terms which means lower EMI of up to 30 years
- Punjab National Bank does not charge any fees for foreclosure or prepayment of loan.
- You can pay your EMI via a number of channels such as PDC, direct bank debit and so on
- Punjab National Bank maintains high standards with respect ethics, integrity and transparency.
- You can have your loan customized to suit your eligibility, capacity, and budget
- Punjab National Bank has the benefit of decades of service as well as a wide network and infrastructure.
Factors that affect interest rate on Home Loans
The rate of interest on home loans of Punjab National Bank depends on several factors:
- Loan Amount :
The higher amount of loan you apply for, the lower the interest rate you are eligible for.
- Salary :
Applicants’ salary represents their capacity to repay the loan. Salary here means the net salary after all deductions including EMI for any previous loans. A high net salary qualifies for a lower interest rate.
- Applicant category :
Punjab National Bank offers different rates of interest to certain categories of individuals such as women and senior citizens. Depending on the category you belong to, you may qualify for lower interest rates.
- Existing customers :
Existing customers of the bank can get interest at competitive rates depending on the amount maintained in the account.
- Credit Score :
Banks check the credit score of applicants for computation of eligibility and interest rates.
- Down Payment :
If you are able to pay a part of the property cost yourself, you may be eligible for lower interest rates.
Details of charges on Punjab National Bank Home Loans
| Interest Rate | 8.65% onwards |
| Processing fee | Upto 0.50%, Minimum Rs 20,000 Maximum Rs 50,000 |
| Maximum tenure | 30 years |
| Prepayment charges | Nil |
| Age | 21 – 60 years for salaried 21- 65 years for self-employed |
Punjab National Bank offers floating rate of interest and fixed rate of interest on home loans. The floating rate of interest is 8.65% – 8.75% while the fixed rate of interest is 9.20% - 9.25%
Punjab National Bank Home Loan Eligibility
Punjab National Bank offers housing finance to salaried and self-employed employees such as IT professionals, employees of PSUs, PSBs, and Government employees. It offers loan for construction of a house, purchase of flat under construction of an approved private builder and ready to move in house or flat. The salaried employees should have three years of experience at the place of work.
The minimum amount of home loan available is Rs. 20 lakhs and the maximum amount is Rs. 75 lakhs, depending on loan to value ratio (LTV) and repaying capacity. The borrower has to bear the registration, charges, stamp duty, and other documentation charges and cannot include it in margin money. The property will be mortgaged to the bank to the extent of the amount of loan and interest.
The repayment of the loan will be calculated in the following manner:
| Period | Monthly repayment |
|---|---|
| During the moratorium period | Interest alone will be serviced |
| Next 120 months | EMI on the sanctioned amount for 360 months |
| Balance period | EMI will fully include the outstanding loan amount during the period. |
In case the housing loan applicant is buying a flat from an approved private builder, the moratorium period will be 36 months plus the remaining period until the date of possession, which can be up to 60 months. During the moratorium period, interest will be serviced when levied. It is mandatory to have term insurance equal to the loan amount and the premium – which must be paid by the borrower – will be over and above the EMI for the loan.
Punjab National Bank Home Loan Status
You can track your Punjab National Bank home loan application by entering the application number on the bank’s official website. You can also follow up with the bank branch where you submitted the application.
How to apply for Punjab National Bank Home Loan?
You can apply for Punjab National Bank home loan by visiting the bank website and downloading the application form. The form is also available at all bank branches. Having filled out the form, a representative will contact you and help you to complete the loan process. It will help speed up the process if you can keep the required documents at hand before the representative contacts you. Apart from KYC documents, the following documents will be required -
| Salaried | Self -Employed |
|---|---|
| Application form duly filled with photograph | Application form duly filled with photograph |
| Proof of Age (Passport, PAN Card, Any other certificate from Statutory Authority) | Proof of Age (Passport, PAN Card, Any other certificate from Statutory Authority) |
| Educational Qualifications- latest degree | Educational Qualifications- latest degree(for professionals |
| Residence Proof(Passport, Driving License, Telephone Bill, Election Card, Ration Card, Any other Certificate from Statutory Authority) | Residence Proof(Passport, Driving License, Telephone Bill, Election Card, Ration Card, Any other Certificate from Statutory Authority) |
| Latest Salary (Slips for 3 months) | Certificate and proof of Business Existence along with Business Profile |
| Bank statement for last 6 months (salary account) | Bank Account Statements of last 12 months ( self & business) |
| Form 16 for last two years | Last 3 years income tax returns (self and business) with Profit and Loss Account, & Balance Sheet duly certified/audited by a Chartered Accountant. |
| Photocopy of titled Documents of Property, Approved Plan | Photocopy of titled Documents of Property, Approved Plan etc. |
| Fee for processing cheque in favor of PNB Housing Finance Ltd. | Fee for processing cheque in favor of PNB Housing Finance Ltd. |
Please note that the bank representative may ask for other documents in addition to these depending on individual circumstances.
Punjab National Bank Home Loan Interest Rate FAQs
1. What is the procedure to apply for Punjab National Bank home loan?
To apply for home loan with Punjab National Bank, you can contact the nearest branch or visit the bank’s website.
2. How can I enhance my eligibility for home loan with Punjab National Bank?
You can club the income of your spouse to enhance the home loan amount with Punjab National Bank.
3. How can part-prepayment help in reducing the home loan EMI payment?
Part-prepayment helps in decreasing the amount of outstanding loan which will help to decrease the interest amount due to be paid. After making part-prepayment you can continue to pay the same EMI and repay the loan earlier.
Write a review
