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PNB Home Loan Interest Rate

Last Updated 02nd Dec 2019

PNB Home Loan Rate Dec 2019

5th December 2019 – RBI keeps Repo Rate unchanged at 5.15%

PNB's home loan interest rate starts from 7.95%, which is one of the best home loan rates in India. Check Best Offers

Instead of MCLR, now PNB offers home loan linked to RBI's Repo Rate. Home loan rate will change after the announcment of repo rate change in monetory policy which is due on Feb 2020. Any change in Repo Rate will impact housing loan rates by the same basis points.

Loan AmountPNB Repo Rate Home Loan RateRate for Female BorrowerRatePNB Repo Rate Home Loan Rate New Repo Rate
Upto ₹ 30 Lakh8.10%7.95%N/A
₹ 30 Lakh - ₹ 50 Lakh8.35%8.20%N/A
₹ 50 Lakh - ₹ 75 Lakh8.35%8.20%N/A
Above ₹ 75 Lakh8.45%8.30%N/A
Apply for Home Loan @ 8.10%* Get upto ₹ 5,000* Cashback
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PNB Home Loan

PNB offers housing loan to people who want money to purchase a house, home renovation and home extension etc. The house itself acts as a security to the loan. PNB Housing loan rate of interest is best in the market.

    PNB Home Loan Details
    Lowest PNB Home Loan Rate7.95%
    Compare with Other Banks
    Interest Rate Linked toRLLR
    Processing Fee Upto 0.35%
    Minimum ₹ 2,500 Maximum ₹ 15,000
    Max Tenure30 years
    Lowest EMI₹ 730 per lakh
    Prepayment ChargesAllowed with Nil charges for floating rate loans
    Check Prepayment Rules
    AgeMin 21 and Max 60 years for Salaried
    Min 21 and Max 65 years for Self Employed

    Home Loan Interest Rates PNB

    PNB home loan interest rates are in the range of 7.95% to 8.45%, with special discounted rates for specific category of borrowers such as ladies borrowers for whom the bank offers the lowest rate of 7.95%.

    ProductsInterest Rates
    PNB Repo Rate Home Loan7.95% - 8.45%
    PNB Pride7.95% - 8.30%

    Latest PNB home loan rate starts from 7.95% , as applicable based on the RLLR. Any change in RLLR will translate into a similar change in the bank’s home finance rate.

    PNB housing finance interest rates depends upon
    • Loan amount: Housing loan rate in PNB depends upon the loan amount you apply for. Higher the loan amount, lesser will be the rate
    • Your Salary: Income helps in identifying the amount of loan that you can be eligible for. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate as higher will be the loan amount.
    • Type of loan opted for: PNB also offers differential rates for women borrowers under their fixed and floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers as per its features.
    • Existing bank customers: PNB offers one of the lowest home loan rates to its existing bank account customers in view of their past relationship with the bank.

    PNB Home Loan Processing Fee and Other Charges

    In addition to interest rates, home finance from PNB also carry some other charges which include:

    • Processing Fee - PNB applies 0.35% processing charges to account for its expenses incurred for conducting a credit appraisal and completing the lending process.
    • Technical and Legal Charges - PNB also charges technical and legal charges which are explained to the customer during the loan process. Once you go through the loan application process, you will need to pay these charges based on PNB rules.
    • Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to PNB. As per RBI rules, banks are not allowed to charge prepayment penalty on floating rate home loans. Hence, you can prepay your home loan with PNB at Nil charges.

    Affordable Housing Loan Scheme by PNB

    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) Pradhan Mantri Awas Yojna: Launched in 2015 to provide houses to the homeless. You can apply for PMAY scheme at PNB if you fulfil the eligibility criteria.

    b) Pradhan Mantri Gramin Awas Yojna: 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: Its a lottery scheme launched every year for buyers of varied income groups.

    f) Rajiv Awas Yojna: Launched in 2009 with the aim of bringing illegal construction under the formal system and encourage 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.

    If you want to get a housing loan from PNB, the process of getting the loan is fairly easy. All you need to do is to apply for a home loan at MyLoanCare. We are a channel partner of all top banks in India including HDFC, SBI, Axis Bank, Citibank. Your loan application will be processed online, and PNB’s representatives will get in touch to begin the process of getting a home finance. You will also be assisted by MyLoanCare’s housing loan advisor to ensure that all the lending process is smooth, quick and you get the best house loan from PNB.

    You can also make a comparison of PNB’s Home Loan Interest rates and other charges using the MyLoanCare comparison tool. Once you apply online, you can check the real time status of your home loan application in your customer account section of MyLoanCare.

    PNB Home Loan 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
    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.
    Who is Eligible?
    • Salaried and Self-employed individuals, with a monthly income of Rs. 25,000, and more.
    • Salaried and self-employed individuals who intend to avail of a home loan to buy a residential property can avail repo rate linked home loan.
    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
    Illustration on PNB Home Loan Interest Rates
    Maximum Annual Percentage Rate (APR)7.95% to 8.45%
    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: Rs. 1 Lakh
    • Time period: 5 years to 30 years
    • PNB Home Loan Interest Rate: 7.95% to 8.45%
    • Processing Fee payable to PNB: Upto Rs. 10,000. Current offer for processing fee is Upto 0.35%
      Minimum Rs. 2,500 Maximum Rs. 15,000
    • Fee payable to MyLoanCare: NIL
    • Total Monthly Cost – From Rs. 730 for a 30 years Rs. 1 Lakh loan at 7.95% (lowest rate, longest time period) to Rs. 2,049 for a 5 years Rs. 1 Lakh loan at 8.45% (highest rate, shortest time period). This is inclusive of principal repayment.
    • Annual Percentage Rate (APR) of charge including all applicable fees: 7.95% to 8.45%
    • Total cost payable over loan tenure: Rs. 32,954 for 5 years loan to Rs. 1.73 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.

    Frequently Asked Questions

    What is PNB home loan procedure?

    You can apply for a PNB home finance by contacting the bank directly or by applying through online marketplaces like myloancare.in. Availing a loan through an online market place improves the chances of getting the best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process, which includes checking your CIBIL score, property valuation, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results. You can also check your PNB home loan status by logging into your customer account with MyLoanCare.

    Why should I opt for balance transfer to PNB?

    PNB offers competitive home loan rates with the best EMI of ₹ 730 per lakh availed at a low-interest rate of 7.95% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 730 per lakh, you should consider the option for a loan transfer to PNB from your existing bank.

    What is the maximum loan tenure I can opt under PNB house loan?

    PNB offers you a longer tenure of 30 years to repay your loan with the benefit of paying less EMI per month.

    Do I get tax benefit on 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.

    Can I foreclose my home loan? What are the charges applicable?

    Yes, you can foreclose your loan with Nil charges.

    Can I transfer my house loan from another bank to PNB?

    Yes, Bank gives you the facility to transfer your existing loan with a hassle-free process. Availing loan transfer to PNB can allow you to save interest, pay lower EMIs, and save money.

    Can I club the income of my spouse with mine and apply for joint home loan?

    You can club the income of your spouse to increase your home loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

    What is the benchmark applicable for housing loan?

    The benchmark applicable for home loan in PNB is RLLR .

    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 loan.

    How will PNB housing loan rate of interest change in the future?
    • PNB offers RBI Repo Rate linked home loan which starts at 7.95%. Current Repo Rate of RBI is 5.15%. Bank adds a mark up on RBI’s repo rate which is called Repo Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains same throughout the tenure. Bank applies a premium of 2.8% to the Repo Rate to arrive at this rate.
    • When RBI increases rates, the bank may increase its Repo Rate linked home loan rates by the same basis points for all existing and new home loans. When RBI cuts interest rates, the bank will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
    • For instance, if RBI slashes Repo Rate by 0.15%, then PNB's Repo Rate linked home loan rate will cut from 7.95% to 7.8%.
    How much margin would I have to pay on home loan?
    S. NO. Loan Amount Margin
    1Up to Rs. 20 Lacs15%
    2Above Rs. 20 Lacs to upto Rs. 75 Lacs20%
    3Above Rs. 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:

    • 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
    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.

    PNB Home Loan News - Dec 2019
    *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