Everyone wishes to have their very own dream home. Some have the capital to make this dream come true while others may have to wait for funds. A home loan is a way of giving a much-needed boost to individuals who wish to buy a home but do not have the financial capacity right now to do so. PNB Housing recognises this fact and offers its PNB Housing Loan schemes for Indian citizens across the country. This scheme intends to make the purchasing of a home or a plot an affordable exercise for the vast majority of middle-class Indians.
PNB Housing is a publicly listed housing finance company that is promoted by Punjab National Bank, the second largest bank in India. It has branches all over the country and has a strong brand value and therefore enjoys a lot of trust among its customers.
The company has categorised its housing loans into two segments – Home Loans and Non-Home Loans.
Home Loans: This category includes
- Home Purchase Loans
- Home Construction Loans
- Home Extension Loans
- Home Improvement Loans
- Plot Loans
Non-Home Loans: The following loans are covered under this category:
- Loan for Purchase and Construction of Commercial Property
- Loan Against Residential and Commercial Property
- Lease Rental Discounting
PNB Housing offers loans at affordable rates for customers who wish to buy their own home or piece of land. The loan can also be availed for facilities such as the purchase of a home, renovation, furnishings and repairs. These loans are given at an interest rate of 8.50%-9.80% for a period of up to 30 years. These have to be paid back through Equated Monthly Instalments (EMIs) till the entire loan has been paid back.
The applicants can apply for a loan for a specified period according to their requirements. Then, they can plan the repayment accordingly. It must be noted that loans taken for a long duration have a much higher interest when compared with shorter duration loans as the interest adds up. Therefore, it is best to try out all combinations through the EMI calculator to ascertain the best loan option possible.
- The company offers housing loan for many purposes such as purchase, maintenance, and repair.
- PNB Housing provides loan amount in the range of 75% to 90% of the property’s value. The remaining amount is to be provided by the applicant.
- PNB Housing offers housing loans at an interest rate of 8.50%-9.80%. These are some of the lowest interest rates when compared with other banks and NBFCs.
- The applicant will loan will be provided only if they meet the bank’s eligibility criterion. Further, the property to be bought will be under the bank’s title and will be transferred to the applicant’s name only when the loan repayment is complete. If for some reason, the applicant fails to repay the loan, then the said property will be forfeited.
- The loan amount is disbursed as a lump sum if the house or flat has already been constructed and the purchase is in the nature of a resale. In case, the house/flat is under construction, then the loan is disbursed in stages. PNB Housing expects the borrower to contribute his / her / their share of the total cost before the loan amount is disbursed.
- These loans can be paid back through EMIs over a period of up to 30 years. The applicant can plan their repayment strategy accordingly.
- The minimum contribution from the borrower should be at least 10% of the total cost of the property. This total cost will be inclusive of the stamp duty and registration charges.
- All necessary documents such as ID proof and residence proof along with salary slip, bank statements, tax returns and photocopy of the documents relating to the property will have to be submitted to the bank.
One of the primary eligibility conditions is that the borrower’s age should be 70 years or less at the time of maturity of the loan. PNB Housing also takes into account the borrower’s income, age, qualification and occupation, among others.
In case of co-applicants, their income will be clubbed to get to the total amount of loan for which they are eligible.
The amount of funding one gets from PNB Housing is based on total loan amount. The maximum funding that PNB Housing offers is given below:
- For loans up to Rs. 30 lakh: 90% of the market value
- From Rs. 30 lakh to Rs. 75 lakh: 80% of the market value
- Above Rs. 75 lakh: 75% of market value
The interest rate on PNB Housing can be segmented into three categories: Ghar Utsav, fixed and floating rate.
- Ghar Utsav: These rates are effective from February 25, 2017 for the first 12 months and then move to the floating rate of interest. They are as follows:
- Salaried People: 8.50%
- Self-Employed Professionals: 8.50% – 9.00%
- Self-Employed Non-Professionals: 8.70% – 9.20%
- Fixed Rate: PNB Housing offers home loans at fixed rates for 3, 5 and 10 years. The rates vary for salaried and self-employed professionals, and self-employed non-professionals. The rates are:
|Fixed Rate Tenure||Salaried and Self-Employed Professionals||Self-Employed and Non-Professional Borrowers|
|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%|
- Floating Rate: The PNB Housing floating rate varies for salaried individuals, self-employed professionals and for other self-employed individuals. The rates are:
- Salaried People: 8.90%
- Self-Employed Professionals: 8.90% – 9.40%
- Self-Employed Non-Professionals: 9.10% – 9.60%
Note: These rates are valid for loans disbursed after 1st March 2017.
- Application Form: This form has all the basic information such as name, age, phone / mobile number, email address, etc. In addition, the photograph of the applicant has to be submitted along with the form.
Age Proof: The applicant must be less than 70 years of age. A self-attested copy of any one of the following documents can be submitted as proof of age:
- Aadhaar Card
- Driver’s Licence
- PAN Card
- Voter’s ID Card
Residence Proof: The following documents are considered as proof of address. A self-attested copy of any one of them has to be submitted:
- Electricity Bill
- Telephone Bill
- Driving Licence
- Voter’s ID Card
- Education Qualification: PNB Housing asks for a self-attested copy of the last degree obtained by the applicant.
- Salary Slip: The salaried applicants must deposit their self-attested salary slips for the last 3 months. This is done to see whether the applicant has the financial capacity to repay the loan. Self-employed people have to provide a self-attested certificate and proof of business existence along with a business profile.
- Income Tax Returns: The salaried applicants have to submit their self-attested Form 16 for the last 2 years. Self-employed people have to provide the self-attested income tax returns for self and for the business with Profit & Loss Account and Balance Sheets duly certified and audited by a Chartered Accountant for the previous 3 years.
- Bank Statement: Salaried applicants have to submit their self-attested bank statements for the account in which their salary is credited, for the last 6 months. The self-employed applicant has to provide self-attested bank statements for self and for the business for the last 12 months.
- Property Papers: Self-attested photocopy of title documents of the property and the approved plan have also to be submitted. Further, the PNB Housing may ask for proof of payments already made to the builder or seller.
- Processing Fees: A cheque favouring ‘PNB Housing Finance Ltd.’ has to be submitted to PNB Housing.
The company offers doorstep services that ensure easy and fast approval as well as quicker disbursement of loans. PNB Housing also provides the option to enhance the loan amount in case the cost of acquisition rises after initial loan disbursement.
PNB Housing Loan: Non Home Loans Particulars
- Eligibility Criteria: The company offers allows an individual to take a commercial property loan provided he or she is less than 50 years old at the time of application. For firms or companies, the firm has to be at least 3 years old.
- Rate of Interest: PNB Housing offers different rates of interest for its various non home loans.
- The NBFC’s rate of interest for commercial property purchase under its Ghar Utsav scheme is 9.75% – 10.25% (floating rate) for the first 12 months and then increase to PNB Housing’s floating rate plus the margin.
- The floating rate currently stands at 9.15%
- The fixed rates for the commercial loans are 10.25% – 10.75% for 3 years, 10.25% – 10.75% for 5 years and 10.50% – 11.00% for 10 years. After the fixed interest period ends, the loan would be automatically converted into a floating rate of interest loan