Objective of the loan:-

The objective of providing this loan is to ensure the easy availability of the home loan at attractive rates to every individual who wants a home for himself but is unable to do so due to financial difficulties.

The motto behind this loan is to ensure ‘Home For All’.

Purpose of the loan:

The home loan provided by the PNB can be utilized for the following purposes:-

• For the construction of a new house or a flat.
• For the purchase of an already built house or a flat.
• The loan can be taken for the purchase of a new house or a flat from the Housing boards/Development authorities/Co-operative societies/Approved builders or any projects.
• The loan can be taken for making any kind of additions to the existing property, house or flat.
• The loan can be taken for making any kind of renovations, repairs, or alterations or for the furnishing of the existing house or flats.
• If there is a cost escalation in the under construction house or a flat that can be met by the existing home loan borrowers by taking this loan.
• Loan can also be taken for the purchase of land for building a house.

The loan can be taken in a single name or it can also have the joint owners.

Quantum of loan:-

The quantum of loan provided by the bank totally depends upon the following conditions:-

• Loan amount given for the construction, addition, or purchase of a new house or a flat is totally need-based and it completely depends upon the cost of the project and the repaying capacity of the borrower.
• The loan provided for the purchase of a land or a plot for the house building is a maximum of Rs.1 crore, if the borrower is from any metro cities. In other cases the loan amount does not exceed Rs. 50 lacs for any other cities.
• Sanctioning of higher amount is considered in the individual cases based on the individual’s merit.
• Loan amount for any kind of repairs, renovations or alterations cannot exceed the maximum amount of Rs.25 lacs.
• The cost of furnishing the house can also be included in the housing loan but it cannot exceed the limit of 10% of the eligible housing loan and can be the maximum of Rs.5 lacs only.

Margin (Borrower’s Contribution)

Category	Margin percentage
Housing Loan Up to Rs.75 lakhs	20%
Housing Loan Above Rs.75 lakhs	25%
Purchase of Land/Plot for House Building	25%

• The margin money for the loan amount taken upto Rs.75lacs is 20% which is the borrower’s share.
• The margin money for the housing loan taken above Rs.75lacs is 25%.
• The margin money on the loan taken for the purchase of the plot, land for house building is 25%.

Further the charges like stamp duty, registration fees, and other documentation charges are to be borne by the borrower and can by no means be included in the margin money. However such charges are included at the time of calculating Loan-to-Value (LTV) ratio but in special cases where the cost of house or dwelling does not exceed Rs.10 lacs.

Home Loan Interest Rate: 8.65% Onwards

Marginal Cost Lending Rate (MCLR): 8.45%

The rate of interest charged by Punjab National bank on the housing loan is:-

• If the loan is taken under floating/fixed rate option then the rate of interest is MCLR (8.45%) + 0.20% = 8.65% onwards

Processing charges and Upfront fees:-

• For a loan amount of up to Rs.1 crore the processing fees and upfront fees is 0.50% of the loan amount but can be the maximum of Rs. 20,000/-. This amount excludes the service tax applicable.

Documentation Charges:-

The documentation charges taken at the time of loan is Rs. 1350/- which excludes the GST and service tax and is subject to change from time to time.

Security:-

The Equitable or the registered mortgage of the property for which the loan is taken is considered is a security against the loan taken by the borrower.

Repayment of Loan:-

• Loan taken for the purpose of repairs, renovations or making alterations to the house or a flat the loan has to be paid within the period of 15 years. This also includes the repayment holiday if any.
• Loan taken for the other purposes has to be paid within the maximum of 30 years it also includes the loan repayment holiday if any.

Evaluation of the loan repayment capacity:-

• The income of the spouse and the earning children whether married or unmarried and of the joint owners can be clubbed with income of the borrower for evaluating the loan repayment capacity of the borrower. In such cases they should be made co-borrower along with the applicant.
• Father or mother can also be made the co-borrower in the case where the property is in the single name of his/her son and also the clubbing of their income is permissible to assess the repayment capacity of the borrower.
• If the property against which the loan is taken is to be let out then the likely income from the property as rental income can be included in the income of the borrower for the purpose of assessing his repayment capacity.

Repayment Holiday/Moratorium:

• For the loan taken for construction or additions to the house the repayment holiday can be till the date of completion of construction or 18 months from the date of the disbursement of the first installment of the loan whichever is earlier.
• For the loan taken for carrying out the repairs, renovations or alterations to the house or flat the repayment holiday can be till the date of completion of the job or 6 months from the date of the disbursement of the first installment of the loan whichever is earlier.
• For the purchase of the ready built flats or houses, land or flats the repayment holiday is till the date of possession of the property or 3 months from the date of advance whichever is earlier.

Documents required:

• Duly filled loan application form
• Self-attested passport size Photograph
• Identity Proof (PAN Card/ Voter’s ID card/ Passport/ Driver’s License)
• Age Proof (Class 10th Certificate, Passport)
• Residence Proof (Utility Bills (Telephone Bill/ Electricity Bill/ Water Bill/ Piped Gas Bills) or Driving License/Passport)
• Last 6 months’ Bank Statement
• Property Papers ( NOC from Builder) (Sale’s agreement)(Chain of all old Sale Agreements)

Income Proofs Required:

For Salaried class: The salary certificate issued by the employer indicating both gross and net monthly salary and the Income Tax Return (ITR).

For Agriculturist: The record of the land-holding and the cropping pattern along with the details of the other sources of income.

For all the other individuals: The last three year income tax return or assessment order and the statement of computation of income with the Bank statements for the last 6 months.

• Income proof of the spouse or the earning children in case they are the joint borrowers.
• Property documents as per the property check-list to be attached.
• Any other document required at the time as per requirements.

This variant of the housing loan is to provide the benefit to the borrower of substantial savings on the interest component through the following facility:-

• To deposit their surplus funds in the overdraft account and
• Withdrawing the same as and when required by the borrower

Eligibility for the home loan

Customers who are below the age of 50 years and are the existing housing loan borrowers who have availed loan under the housing loan scheme for public subject to the fulfillment of certain terms and conditions can apply for this loan.

Purpose of the home loan

• For the construction of a new house or a flat.
• For the purchase of an already built house or a flat.
• The loan can be taken for the purchase of a new house or a flat from the Housing boards/Development authorities/Co-operative societies/Approved builders or any projects.
• The loan can be taken for making any kind of additions to the existing property, house or flat.
• The loan can be taken for making any kind of renovations, repairs, or alterations or for the furnishing of the existing house or flats.
• If there is a cost escalation in the under construction house or a flat that can be met by the existing home loan borrowers by taking this loan.

Loan under this scheme is not given for the purchase of land or plots.

Nature of Facility:

The total loan sanctioned by the bank is the form of term loan which comprises of 80% of the loan and the rest 20% is the overdraft facility.

Extend of loan

• The first enhancement on the loan can be taken after 3 years. The overdraft limit can be increased by maximum of 50% of the total loan amount sanctioned. But the extent of enhancement is equal to the reduction in the term loan amount.
• Borrowers are entitled to the 20% increase in the total loan amount sanctioned only after the lapse of 5 years.
• The borrower can also take enhancement for his or her personal needs in the shape of another overdraft limit.

Margin:-

The margin of payment for the loan is 20% and 25% for the term loan and overdraft respectively.

Repayment:-

For the term loan component the repayment is as follows:

• For the loan taken for the purpose of repairs, renovations or making alterations to the house or a flat the loan has to be paid within the period of 15 years. This also includes the repayment holiday if any.
• Loan taken for the other purposes has to be paid within the maximum of 30 years it also includes the loan repayment holiday if any.

For the overdraft component the repayment facility is as under:

• For the borrowers below the age of 55 years the payment of interest as and when charged i.e.on the monthly basis.
• For the borrowers above 55 years of age the interest shall be serviced as per the drawing power of the individual on monthly basis.

Processing Fees and Documentation charges

• For the loan amount upto Rs.300 lacs the processing fees and upfront fees is 0.50% of the loan amount but can be the maximum of Rs. 20000/-. This amount excludes the service tax applicable.
• For the loan amount above Rs.300 lacs the processing fees and upfront fees is Rs.50000/-but it excludes the service tax applicable.

The documentation charges taken at the time of loan is Rs. 1350/- which excludes the service tax and is subject to change from time to time.

Objective:-

The objective of this overdraft facility is to give an additional facility in the form of overdraft for personal use to the existing or new housing loan borrowers.

Eligibility:

This loan is only available to the existing or the new borrowers of the housing loan of the bank or for the takeover of home loan in some cases.

Loan is not permitted for the purpose of trade or any kind of business or for any speculative purposes.

Purpose:

The purpose of the loan is totally personal based.

Extent of Loan:

The extent of loan permissible under this scheme is minimum of Rs. 50000 and maximum of Rs. 25 lacs.

Nature of Facility:

The nature of facility available is in the form of overdraft only.

Margin:

The margin money required for this facility is NIL.

However, the LTV of 80% and 75% on (housing loan + overdraft limit) realizable value of house or flat is required.

Repayment

The loan amount is required to be renewed every year.

Rate of Interest

The rate of interest for this loan is MCLR (8.45%) + 0.40%.

Security

The security on overdraft is given by extending the charge on the immovable property which is already mortgaged with the bank.

PNB also offers various other home loans for its customers. To check and compare various loan options, you can simply visit paisabazaar.com and pick from the numerous available options. Get the best deal as per your need and requirement by comparing it with loan options at paisabazaar.com. However you can also go the official website of PNB or visit the bank branch to avail home loan.