This article is the Complete guide of Home Loan from PNB. Let’s get started
Eligibility of Home Loan from PNB
Individuals or group of individuals (co-borrowers) who are resident of India and having an assured source of regular income are eligible to avail PNB Home Loan. Like:-
- Salaried employees
- Pensioners
- Professionals
- Self Employed persons
- Businessman
- Farmers
- PNB Staff members are also eligible under Public Scheme
Read Also: How to Get Personal Loan from Shriram Finance
Purpose of Home Loan from PNB
PNB Home loan can be availed any of the following need:-
- For construction of house/flat
- For purchase of built house/flat.
- For purchase of under construction house/flat from Housing Boards/ Development Authorities/ Co-operative Societies/ Private Builders.
- For carrying out Additions to the house/flat.
- For carrying out repairs/ renovation / alterations/ cost of furnishing to the house/flat.
- For meeting cost escalation in the cases of under-construction flats to existing Home Loan borrowers.
- For purchase of land/plot for construction of house building.
Limit of Home Loan from PNB
| For Construction/Additions/Purchase of House/Flat | Need based loan depending upon the project cost and repaying capacity of the borrower |
| For standalone purchase of Land/ Plot for construction of House Building | Maximum Rs.50 lac. |
| For Composite Loan: for plot purchase and construction thereon | Need based loan depending upon the project cost and repaying capacity of the borrower. |
| For repairs / renovation / alterations | Maximum Rs.50 lac. |
PNB Home Loan amount to be arrived at the cost of unit i.e Realizable Value or sale consideration value whichever is lower
Maximum Permissible Deduction for Home loan from PNB
| Gross Annual Salary/Income | Max. Permissible Deduction of GAS/I |
|---|---|
| Upto Rs.5.00 lakh | 50% |
| Above Rs.5.00 lakhs upto Rs.10.00 lakhs | 60% |
| Above Rs.10.00 lakhs | 70% |
Margin for Home Loan from PNB
| Parameters | Margin | |
| For All purposes except to purchase of Land/Plot | Home loan Upto Rs.30 lac | 20% |
| Home Loan above Rs. 30 lac and Upto Rs.75 lac | 20% | |
| Home Loan above Rs.75 lac | 25% | |
| Purchase of Land/Plot for House Building | 25% | |
Charges e.g. stamp duty, registration charges and other documentation charges, if any, paid by the borrower shall not be considered towards margin money. However, Acquisition cost of plot acquired by the borrower from his/her own sources within 12 months to date of submission of proposal for sanction of home loan for construction of house be considered towards Margin Money.
In such cases registered value or realizable value (RV) whichever is lower will be considered towards margin. (In case plot/land is not considered towards margin, valuation of the same is not mandatory
Security in Home loan from PNB
- Equitable/registered mortgage of the property
- Where mortgage cannot be created immediately in situations like house/flat is being purchased/allotted by the Housing Board, Development Authorities or Co-operative Society/Builder, and title/conveyance deed is executed in favour of purchaser only after completion of construction & possession/ making full payment of the cost of house/flat, a stamped Tripartite Agreement be executed amongst Housing Board/ Development Authority/ Co-operative Society/ Builder, the intending borrower and the Bank before release of the loan. (By entering into Tripartite Agreement among Board/ authority/society/Builder/ seller, allottee/ purchaser and bank, bank gets direct privity with the Housing Board/ Development Authority/ Co-operative Society /Builder.)
Documents required for Home Loan from PNB
- Two recent passport size color photos
- Copy of Identity proof i.e. PAN, Driving License, Passport
- Copy of Address proof i.e. Driving License, Aadhar Card, Passport
- Copy of local address proof (In case of current address is not updated on Aadhaar card) i.e. Utility Bills
- Income proof
- For all class of borrower(s):- The regularity of income of the borrower(s) over the entire span of loan should be clearly established before sanction of loan. ITR of minimum two years etc. be taken & perused.
- For Salaried class:- Latest salary slip, Form16/ITR for the 2 years be taken, perused and placed on record. Assessment of Loan/ Repaying capacity be arrived at on the basis of latest salary slip and other regular income, i.e., dividends, interests, rent etc. as declared in salary certificate, form 16 and/ or income tax returns. Where 2 years ITRs/Form 16 is not available on account of lesser service period, the sanctioning authority may consider sanction of loan provided last 12 months salary is verified either from salary slips/form 16 or Statement of Account. (Salary certificates must be independently verified from HR Deptts. of the Co./concern)
- For other than Salaried class:- While ITRs and Balance Sheets [(only in case where getting benefit of point 3.12 below) (Audited wherever applicable)] for the last 2 years of business/activity shall be taken and perused to ascertain continuity of income, assessment of loan/repaying capacity be arrived at on the basis of average income as reported in the last two ITR
- At least 13 years of Chain of Title of property. Original Deeds, Transfer letter, Allotment/Re-allotment letter etc., Original Map of the property
- KYC and Income proof documents of Guarantor (if required)
- Legal Report (Search Report or NEC) and Valuation of property. (it is to be done at the end of bank)
Repayment Period for Home Loan from PNB
| For Construction/ Additions of House/ Flat/Purchase of ready built house/ flat | Loan along-with interest is to be re-paid in equated monthly installments within a period of 30 years inclusive of moratorium period, if any. |
| For carrying out repairs/ renovation / alterations to the house/flat | Loan along-with interest is to be re-paid in equated monthly installments within a period of 15 years inclusive of moratorium period, if any. |
Repayment Period in Home Loan From PNB
| For Construction/ Additions of House/ Additional construction in Flat | Till completion of construction (including additions) or 18 months, from the date of disbursement of first installment of the loan, whichever is earlier |
| For carrying out repairs/ renovation / alterations to the house/flat | Till completion of repairs/ renovation / alterations or 6 months, from the date of disbursement of first installment of the loan, whichever is earlier |
| For purchase of ready built House/ flat OR land/plot | The repayment to start after the date of possession or 3 months from the date of advance, whichever is earlier. |
| For under-construction flats/houses built by approved private builders | Till possession is handed over to the purchaser (borrower); OR Maximum 48 months or as declared in RERA by the Builder/Developer whichever is lower from the date of disbursement of first installment of the loan; Whichever is earlier, subject to interest being collected on monthly basis (as and when debited) during the moratorium period. |
Charges in Home Loan from PNB
| Home Loan | Service Charges |
|---|---|
| Home Loans irrespective of Loan Amount | 0.35% of the loan amount Minimum- Rs. 2,500/- Maximum- Rs. 15,000/- |
| Takeover of Loan | Rs. 2,500/- |
| Documentation Charges | Rs. 1350/- (Irrespective of amount) |
Pre-payment Charges
LOANS SANCTIONED UNDER FLOATING RATE OF INTEREST BASIS
- No Prepayment charges be levied on floating rate of interest on Home Loans
LOANS SANCTIONED UNDER FIXED RATE OF INTEREST BASIS
No Prepayment charges are to be levied in the following cases:-
- Where the loans are prepaid by the borrowers from their own sources.
- Where the borrower shifts to other bank within 30 days from the date of issuance of circular for upward revision in the rate of interest to be charged in his account or change in other terms of sanction.
- Where closure of loan is on instance of the Bank on account of size of irregularity, possibility of default in future or any other technical or other specific reasons, pre-payment penalty would not be applicable in such accounts.
- However, a flat pre-payment charge of 2% be recovered from all other borrowers, i.e., on fixed rate home loans, who intend to shift their Home Loan Accounts to some other Banks / Financial Institutions by way of availment of loan from such banks / financial institutions.
Penal Interest
Where loan is sanctioned for purchase of plot/land & in case construction of the house is not completed within 3 years from date of disbursement of the loan or in case the plot/land is sold, penal interest at 2% over & above the prescribed rate of interest will be charged from the first date of disbursement of the loan.
PNB Home Loan Interest Rate 2023
| Margin & Loan Amount | CIBIL | Rate of Interest |
|---|---|---|
| For loan above Rs. 30 lacs LTV Ratio <= 80% | 800 & above | 8.60% |
| Irrespective of Loan Amount LTV Ratio <= 80% | 750 and above | 8.65% |
| 700 – 749 | 9.00% | |
| 600 – 699 | 9.35% | |
| Loan Amount upto 30 lacs LTV Ratio more than 80% but upto 90% | 750 and above | 8.75% |
| 700 – 749 | 9.10% | |
| 600 – 699 | 9.45% |
Click here to learn How to use PNB Loan Calculator to calculate EMI
