- Avail the loan, the following eligibility criteria need to be met by the borrower.
- The borrower must be a salaried employee or a self-employed professional or non-professional
- At the time of maturity of the loan, the age of the salaried employee should not exceed 60 years and that of the self-employed professional or non-professional should not exceed 65 years
Updated: 11-04-2019 09:08:33 AM
PNB Housing Finance Limited offers its customers loans against their properties wherein the loan is given against the mortgage of residential or commercial properties. The loan has various features which are enumerated below:
Features of PNBHFL Loan Against Property
- The loan is available against mortgage of property irrespective of the fact whether it is a residential property or a commercial one. The property is supposed to be mortgaged to the bank against the value of which the loan will be issued.
- The loan amount availed can be used for various purposes like business expansion, foreign travel, personal expenses like education, the marriage of children, family function, medical expenses, furnishing the house, purchasing expensive consumer durables, etc. The loan amount, however, cannot be used for any illegal or illegitimate purposes.
- The maximum amount of loan which would be offered would be 50% of the value of the property based on the certification of the PNBHFL’s approved value or repayment capacity of the borrower whichever is lower
- The loan eligibility will be determined by the institution after considering the income, age, qualification, occupation, etc. of the borrower to determine the credit worthiness or the repayment capacity
- Income of the borrower(s) or co-borrower(s) can be clubbed together for calculating the loan eligibility of the borrower
- The borrower is advised to get the property and the respective loan repayments insured to avoid loan liability in case of any unfortunate event during the repayment of the loan. For this, PNBHFL has tied up with Bharti AXA and ICICI Lombard to provide life and property insurance respectively. The companies offer the best products at competitive rates and even offer doorstep services for the convenience of customers.
- For availing the loan, security is required which is in the form of an equitable mortgage of the property to be financed and other collateral securities which the institution deems fit. Interim security may be called for by PNBHFL in cases where it sees fit.
- The disbursement of the loan will occur when the institution’s value has appraised the property completely and all legal documents have been duly submitted and accepted by PNBHFL. The loan is disbursed in a lump sum directly to the customer’s bank account.
The loan repayment mode through Equated Monthly Instalments (EMIs). You can repay the loan directly through Electronic Clearing System (ECS) or as per the instructions of the bank to debit the loan amount and credit it towards the loan amount. You can also repay by a post-dated cheques.
Eligibility Criteria for Availing the Loan
Interest Rate
PNB Housing Finance Limited offers both floating and fixed rates of interest. The floating rate is linked to the benchmark rate of 14.35% per annum and is as follows:
Loan Based on Type of Property | Floating Rate of Interest |
Loan against commercial property | 11.00% - 11.50% |
Loan against residential property | 10.75% - 11.25% |
Loan against commercial or residential plot | 12.00% - 12.50% |
PNBHFL also offers a 3 year, 5 year and 10 year fixed rate scheme, post which the rate gets converted to floating rates automatically. The rates are:
Loan Based on Type of Property | Fixed for 3 years | Fixed for 5 years | Fixed for 10 years |
Loan against commercial property | 11.25% - 11.75% | 11.25% - 11.75% | 11.50% - 12.00% |
Loan against residential property | 11.00% - 11.50% | 11.00% - 11.50% | 11.25% - 11.75% |
Loan against commercial or residential plot | 12.00% - 12.50% | 12.00% - 12.50% | 12.50% - 13.00% |
Documents Required
The following self-attested documents are required for availing the loan:
For salaried employees:
- Age proof –Passport, PAN card or any other certificate from a statutory authority
- Address proof – Ration card/ electricity or telephone bill/ election card/ passport/ driving license or any other certificate from a statutory authority. The applicant needs to submit any one of the afore-mentioned documents which state the correct address of the applicant needed for the verification process of the bank.
- Latest degree for education qualification
- Last 3 month’s salary slips
- Last 2 year’s Form 16
- Last 6 month’s bank statement of the salary account
For self-employed professionals and non-professionals
- Age proof – Passport / PAN card / Aadhaar Card
- Address proof – Ration card / Aadhaar Card / Electricity or telephone bill/ election card/ passport/ driving license.
- Latest degree for education qualification for professionals
- Certificate and proof of existence of business along with business profile
- Last 3 year’s income tax returns of self and of business with profit & loss account and balance sheets duly certified or audited by a chartered accountant
- Last 12 month’s bank account statements of self and business
- The relevant processing fee cheque was drawn in favor of PNB Housing Finance Limited.
Advantages of Availing a Loan Against Property from PNBHFL
There are numerous advantages attracting a borrower to apply for a loan from PNBHFL. Let us take a look at those reasons:
- The institution has a pan-India presence and thus customers can contact any branch present anywhere for availing a loan
- The services delivered by the institution are at par with the best facilities including doorstep services wherein the customer does not have to undertake any pains to get the loan sanctioned. The company comes to the customer’s doorstep to help him avail the loan easily and hastily.
- The services granted by the company post the sanction and disbursement of the loan are also excellent and they help the customer at every single step till the loan is not completely repaid
- If the customer requires additional amounts due to escalation of costs, there is also a provision for increasing the loan amount granted to take care of the additional costs
- PNBHFL engages a team of well-trained and specialized staff to take care of the customers and to assist and guide them through the loan application, sanction, and repayment processes
- The institution promises high standards of ethics, integrity, and transparency to give genuine services to the customers and to avoid any fraud in the loan sanction process
- There are various repayment options available to the borrower to repay the loan easily. The borrower may choose the option which is the most suitable to him or her and repay the loan conveniently.
Loan Against Property EMI Calculator
- EMI on property loan is the amount that is paid by the borrower every month to the lender (PNB Housing) to repay the loan. It is important to know the approximate EMI before taking a loan against property in PNB Housing. An EMI calculator is provided on the PNB Housing website for the convenience of borrowers so that they can get an idea of the monthly outlay they will have to incur to clear the loan from PNB Housing.
- The loan against property EMI calculator is a simple, user-friendly tool designed to instantly give the approximate value of monthly EMI for a property loan from PNB Housing. One has to enter the desired principal loan amount, the tenure of loan and expected interest rate. The tool calculates the EMI amount instantly and gives the borrower a reasonable idea of the money that he / she will have to repay in monthly mode for the PNB Housing property loan.
- The interest payable constitutes the major portion of the EMI in the initial loan years as the principal amount is large. As the loan matures, the interest component decreases and the principal component gradually increases.
Apply Loan Against Property from PNB Housing
Applying Online
You can apply at Paisabazaar website by following few simple steps:
- Visit the website and click on loan against property at our homepage
- The website will direct you to a loan application page
- Fill in the loan application with your personal details and loan requirements
- Select a few loan schemes to make comparisons based on your requirements
- Select loan against property from PNB Housing and click ‘Apply’
Frequently Asked Questions (FAQs)
Q. What all purposes can a loan against property be used for?
Ans. A property loan from PNB Housing can only be used for legitimate purposes. The funds can be utilised for business expansion, overseas travel, child’s education and marriage, medical care, home improvement, purchase of consumer durables, etc. The only pre-condition is that use should be for lawful and valid objectives.
Q. Who all are eligible for a loan against property?
Ans. The eligibility criteria for the PNB loan against property scheme states that the borrower should be a salaried employee or a self-employed professional/ non-professional. If the borrower is a salaried employee, his/ her age should not be more than 60 years at the time of maturity of the loan. In case the borrower is a self-employed professional or non-professional, his/ her age at loan maturity should not be greater than 65 years.
Q. What documents are required for a property loan from PNB Housing?
Ans. In order to avail a loan against property from PNB Housing, the following self-attested documents have to be submitted to the company. All the documents require self-attestation.
List of documents required for salaried employees:
Filled loan application form with a coloured passport size photograph
Age proof in the form of one of the following:
- PAN card
- Passport
- Any other certificate issued by a statutory authority
Residence proof in the form of one of the following:
- Passport
- Driving license
- Telephone bill
- Ration card
- Voter ID card (election card)
- Any other certificate issued by a statutory authority
- Most recent education qualification degree
- Recent salary slips (for previous 3 months)
- Form 16 (for previous 2 years)
- Salary account bank statement (for previous 6 months)
- Cheque for processing fee drawn in favour of PNB Housing Finance Limited
- Photocopy of the title documents and approved plan of the property
List of documents required for self-employed professionals and non-professionals:
Filled loan application form with a coloured passport size photograph
Age proof in the form of one of the following:
- PAN card
- Passport
- Any other certificate issued by a statutory authority
Residence proof in the form of one of the following:
- Passport
- Driving license
- Telephone bill
- Ration card
- Voter ID card (election card)
- Any other certificate issued by a statutory authority
- Most recent education qualification degree (for professionals)
- Certificate and business existence proof with business profile
- Income tax returns (self and business) for previous 3 years with profit & loss account and balance sheets certified and audited by a chartered accountant
- Bank account statements (self and business) for previous 12 months
- Cheque for processing fee drawn in favour of PNB Housing Finance Limited
- Photocopy of the title documents and approved plan of the property, etc.
Q. What is the extent of loan given against a property?
Ans. The maximum loan amount of a PNB Housing property loan is lower of the following:
- 50% of the market value of the property as certified by PNB Housing’s approved valuer
- Repayment capacity of the borrower
Q. What are the benefits of a loan against property from PNB Housing?
Ans. PNB Housing offers the following advantages to customers:
- Range of options for a loan against property. Loans are available by mortgaging commercial properties, residential properties as well as residential and commercial plots.
- Pan-India network of branch offices with 14 branches in the north, 9 in the west and 10 in the south
- Strong service delivery model with doorstep services ensuring quick approval and disbursal of loans
- Superior post-disbursement services
- Option to enhance the loan due to an increase in cost
- Experienced and dedicated staff give their best to ensure customer satisfaction
- End-to-end enterprise system solution and best-in-class information system network help in faster loan processing
- High standards of ethics, integrity and transparency
- Multiple loan repayment options available