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PNB Home Loan Interest Rates 2020

PNB Housing Loan Interest Rate

Last Updated 17th Sep 2020

Current PNB Home loan interest rates for Sep 2020 starts at 7.15% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.35%, Minimum ₹ 2,500 and Maximum ₹ 15,000. PNB offers a special discount of 0.05% on interest rates for women borrowers.

Loan AmountPNB Repo Rate Home Loan RateRate for Female Borrower
Upto ₹ 30 Lakh7.20%7.15%
₹ 30 Lakh - ₹ 50 Lakh7.35%7.30%
₹ 50 Lakh - ₹ 75 Lakh7.35%7.30%
Above ₹ 75 Lakh7.35%7.30%

PNB Home Loan Interest Rates

PNB offers various products on home loan. PNB home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • PNB Home Loan Interest Rate starts from 7.15%.
  • PNB charges a processing fees of Upto 0.35%, Minimum ₹ 2,500 and Maximum ₹ 15,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from PNB is ₹ 675 per lakh offered at the lowest interest rate of 7.15% at the longest loan tenure of 30 years.
  • PNB allows prepayment of home loans with Nil charges on floating rate loans.
  • PNB has an average customer rating of 3.9/5.0 from customers who have taken a home loan from the bank.

PNB Home Loan Rate

Current PNB home loan interest rates are in the range of 7.15% to 7.80%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.15%. The table below gives the interest rates on various housing finance schemes of PNB.

PNB Home Loan Scheme Interest Rates
PNB Repo Rate Home Loan7.15% - 7.80%
PNB Pride7.15% - 7.30%

PNB Bank Home Loan Charges

PNB Home Loan Processing Fee

PNB home loan processing charges are upto 0.35% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 2,500 and has capped the maximum processing fees at ₹ 15,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to PNB housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

PNB Home Loan Prepayment

PNB charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to PNB for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from PNB, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with PNB.

PNB Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Home Loan PNB Schemes

PNB offers customized schemes for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Repo Rate Linked Home Loan

  • This loan is available for individuals who want to buy a residential property through a home loan.
  • Existing home loan borrowers can also choose to transfer their loan under this scheme.
  • As per RBI guidelines, it is mandatory for all banks to link their loan interest rates with the repo rate.
  • The scheme is available for new borrowers as well as existing borrowers.
Key Loan Terms
  • Home loan available at the age of The minimum age required to avail the loan is 18 years, while the maximum age is 60 years.
  • Loan amount that you can borrow ranges from ₹ 10 Lakh to ₹ 1 Cr
  • Option to apply for a maximum ltv of 80% of value of the property
  • Housing loan for a maximum period of 30 years

PNB Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at PNB if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on PNB Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)7.15% to 7.8%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • PNB Home Loan Interest Rate: 7.15% to 7.80%
  • Processing Fee payable to PNB: Upto ₹ 10,000. Current offer for processing fee is Upto 0.35%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 675 for a 30 years ₹ 1 Lakh loan at 7.15% (lowest rate, longest time period) to ₹ 2,018 for a 5 years ₹ 1 Lakh loan at 7.80% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,085 for 5 years loan to ₹ 1.53 Lakh for 30 years loan

PNB’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of PNB.

FAQs

What is PNB Home Loan interest rate?

PNB Home Loan interest rate ranges between 7.15% to 7.80%.

Why should I opt for balance transfer to PNB?

PNB offers competitive Home Loan rates with the best EMI of ₹ 675 per lakh availed at a low-interest rate of 7.15% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 675 per lakh, you should consider the option for a loan transfer to PNB from your existing bank. EMIs can be calculated through PNB Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from PNB?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on PNB housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on PNB housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will PNB housing loan rate of interest change in the future?

  • On conversion of loan from fixed rate to floating rate, charges are 2% of the outstanding loan amount and applicable tax
  • On floating rate to fixed rate loan conversion, you will be charged 0.5% of the outstanding principal and applicable tax

How much margin would I have to pay on Home Loan?

S. NO. Loan Amount Margin
1Up to ₹ 20 Lacs15%
2Above ₹ 20 Lacs to upto ₹ 75 Lacs20%
3Above ₹ 75 Lacs25%

Can I convert my Home Loan rate from fixed rate to floating rate or vice-versa? What are the charges applicable?

Yes, you can convert your Home Loan rates from fixed rate to floating rate and vice-versa. The charges applicable are as following:

Am I eligible for top up on my existing Home Loan?

PNB allows you to top up your existing Home Loan at any time during your loan tenure.

What is the current PNB Home Loan rate?

The current PNB Home Loan rate starts from 7.15% with a processing fee of Upto 0.35%, Minimum ₹ 2,500 and Maximum ₹ 15,000

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PNB Home Loan News - Sep 2020
  • 2020-08-25 : PNB to offer one-time loan restructuring option
    Punjab National Bank is planning to provide a one-time loan restructuring window to corporate and retail loans like home, personal, gold, two-wheeler, car, along with business and mudra loans. The plan is to assist customers whose income has decreased due to COVID-19 pandemic and subsequent lockdown.
  • 2020-08-24 : PNB Q1FY21 net profit at Rs. 475.19 crore
    Punjab National Bank posted a net profit of Rs.475.19 crores for the period ended June 30, 2020, as against a net loss of Rs.596.99 crores for the period ended March 31, 2020. In addition to this, the bank reported total income of Rs.24727.72 aided by retail loans like home, personal, car, two-wheeler and gold loan along with business and mudra loans.
  • 2020-02-05 : PNB reported a net loss of Rs. 492 crores for quarter ending December
    Punjab National Bank reported a net loss of Rs. 492 crores for Q3 2019 which was Rs. 247 crores in the same quarter a year ago.The net loss was mainly due to the increase in provision of bad loans which stood at Rs. 4,471 crores. Total income during Q3 was Rs. 15,967 crores driven by Home Loans, Personal Loans and Business Loan.
  • 2019-10-07 : Punjab National Bank aims at digital transformation
    Punjab National Bank is all set to transform into a technology-driven large bank, after its collaboration with United Bank and Oriental Bank of Commerce. Through digital services, the bank aims to offer better loan terms by estimating the accurate risk level and financial stability of the customer. Also, customers could easily get information on their finances, and on any retail or business loans before opting for one.
  • 2019-10-01 : Punjab National Bank to co-originate loans with NBFCs
    In a bid to provide more credit flow, Punjab National Bank is all set to provide loans by co-originating funds with NBFCs. The Bank is planning to co-originate loans amounting to Rs 4,000 crores. The Bank has already funded some potential NBFCs regarding the co-origination that is expectedly beneficial to the Bank and to the customers due to affordable retail loans.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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