PNB Personal Loan

This loan is devised for individuals who are availing a pension from any branch of the Punjab National Bank. The detailed features and benefits of the loan scheme are as follows:

• The loan can be used for meeting any type of personal needs of pensioners which might also include any type of medical expenses
• Every individual who is a pensioner and draws his pension from the branch of the bank can avail the loan
• The minimum amount of loan available is Rs.25, 000 while the maximum amount of loan depends on the age of the borrower. For borrowers aged up to 70 years the maximum allowable limit of loan would be Rs.10 lakhs or 18 times the net monthly pension drawn which is increased to 20 times the pension drawn in case of defense personnel, whichever is lower. For borrowers who are above the age of 70 years and up to 75 years, the maximum allowable loan amount is lower of Rs.7.50 lakhs or 18 times the net monthly pension drawn which is increased to 20 times the pension drawn in case of defense personnel. For ages above 75 years the maximum loan would be lower of Rs.5 lakhs or 12 times of monthly pension drawn.
• The loan does not have any margin requirement and is issued without any margin
• The rate of interest charged on the loan would be linked to the Marginal Cost of Fund Based Lending and would be MCLR + 2.60% per annum
• No processing charges would be payable as upfront fee because the loan has no processing fee requirement
• Documentation charges would be payable on the loan amount which would be Rs.500 and the applicable service taxes.
• The loan is issued as a secured loan where guarantee of the spouse who is eligible for family pension is required or the guarantee of children if they are earning and are government employees or a third party guarantee who is acceptable to the bank and whose net worth is equivalent to the loan amount availed would be required as security
• The repayment tenure also depends on the age of the borrower. For pensioners aged up to 75 years, a maximum of 60 months are allowed as repayment period while for pensioners above the age of 75 years, the repayment period is reduced to a maximum of 24 months. The repayment installments would be fixed on such basis that all deductions which also include the EMIs of the proposed loan should not be higher than the prescribed limit of 50% of the net monthly pension.

• All confirmed and permanent employees of State/ Central Government ,Public Sector Units
• All renowned corporates or any institutions including schools, colleges, universities, hospitals/nursing homes, autonomous bodies.
• The above employees must draw their salary through the accounts which are being maintained with the branches of the PNB or they have decided for check off facility.
• All professionally competent Doctors for example MBBS, BDS and above who has an annual income of more than Rs 4 lakhs and are paying tax for the last 3 years.
• All confirmed Defense Personnel which includes Military Station Headquarters Officials, Border Security force, Central reserve Police Force, Central Industrial Security Force, Indo Tibetan Border  Police.
• The eligibility criteria varies according to the following categories-

	Eligibility for Salaried Employee	Eligibility for Self employed Individual	Eligibility for Pensioners
Age	Min : 21 Yrs Max: 58 Yrs	Min : 21 Yrs Max: 65 Yrs	Pensioners drawing pensions from any branches of the Bank.
Minimum Income Needed	Semi Urban and Rural Rs 10000/month, Urban Rs 12500/ month, Metro Rs 15000/ month.	Rs 20000/ month	Not Applicable
Total number of years in Job/ Profession	2 yrs	2 yrs	Not Applicable
Number of years in current residence	Not Applicable	Not Applicable	Not Applicable

 The minimum loan amount is Rs 50000/-. The maximum rid can be classified as mentioned below:

• For all the borrowers – Its Rs 4,00,000 or 20 times net monthly salary whichever is lesser subject to the following net monthly salary grid.
  • For Metro: Rs 15,000/-
  • For Semi- Urban/ Rural:  Rs 10,000/-
  • For Urban: Rs 12,500/-
•  It is Rs 5,00,000 or 20 times net  salary whichever is lesser for salaried individuals who have completed 3 years in the current company and the monthly drawing is more than Rs 30,000/- per month.
• For all the employees who are drawing salary through one of  the branches of PNB bank and have also completed 3 years of service in the current organization the maximum loan amount offered is Rs 10 lakhs or 20 times of Net Monthly Salary for loans up to Rs 5 lakhs and 15 times of Net Monthly Salary for loan above Rs 5 lakh and upto Rs 10 lakh. However the same is subject to minimum net monthly salary as under:
  • Urban: Rs 40,000/-
  • Metro: Rs 50,000/-
  • Semi – Urban and Rural- Rs 30,000/-

For teachers and Defense personnel, the net monthly income has to be Rs 7500/- across all the centers.

PNB Personal Loan Interest Rates

Loans upto Rs.10 lac -For individuals whose salary is being disbursed through our branches only (Including Defence Personnel).	MCLR + 3.55%
*Loans above Rs.5 lacs & upto Rs.10 lac* -For other categories i.e., applicants not having salary account with our bank irrespective of check off facility.(*Field functionaries are not empowered to sanction these cases.)	MCLR + 4.55%
Loans upto Rs.5 lac -For individuals who are availing the loan under check off facility (Including Defence Personnel)	MCLR + 5.55%
For others upto Rs.5 lac	MCLR + 6.55%

• Tenure of Personal Loan

The loan tenure is 12 months to 60 months.

Processing Charges /Documentation Charge/Upfront fee

• A processing charge of 1.80% is taken along with other service tax and education cess. The following is the documentation charge which is applicable:

Upto Rs 2 lakh : Rs 270 + service tax and  education cess.

Over Rs 2 lakhs: Rs 450 + service tax and education cess.

For Defense Personnel the processing and the documentation charges are nil

• Security

Punjab National Banks do accept the third party guarantee which are valid and are appropriate.

• Repayment

The repayment can be done either in term loan or through overdraft.

• Term Loan

This can be repaid within remaining term of service or in a maximum 60 EMIs whichever is earlier.

• Overdraft

This can be repaid by decreasing the Drawing power so as to make it equivalent to EMI.

The earnings of the spouse can be included while determining the repaying ability or the capacity of the loan applicant where the spouse is a permanent and a confirmed employee of a Central or State Government or Public Sector Units or renowned corporate/Institutions which includes schools or colleges universities , autonomous bodies or hospitals and nursing homes. In all these cases, the spouse can be made as co-borrower.

• Prepayment Charge

PNB has no prepayment charges for personal loans.

Applicants who wish to get a personal loan from PNB personal loan to finance any sort of  personal expenses can easily apply for this personal loan online using the website Paisabazaar.com very easily. This simple procedure may require few details of the applicant to determine their eligibility If the applicant fulfils the eligibility criteria as according to the bank, the website would then redirect the individual to another page which will help him  apply for a PNB personal loan.

• Who can avail personal loans issued by Punjab National Bank?

Personal loans from Punjab National Bank are issued to salaried employees, self-employed professionals and non-professionals and also pensioners who draw pensions from the bank

• For what  all purposes can the personal loan be used?

Personal loans issued to any individual can be used for all types of personal expenses, business related expenses and medical expenses for which an individual might require funding

• What is the age criterion for availing the personal loan?

Personal loans for salaried employees would be given to individuals who are aged between 21 years and 58 years. For self-employed professionals and non-professionals, the age limit is minimum 21 years and maximum 65 years. There is no age limit for pensioners who like to avail the loan. The only condition for pensioners is that they should be drawing a pension from the bank’s branch from where they want to apply for the loan.

• What is the minimum amount of loan which can be availed under the Personal Loan category?

The minimum amount of loan which can be availed is Rs.50, 000 for salaried and self-employed individuals and professionals. For pensioners, the minimum amount of loan granted is Rs.25, 000.

• What is the maximum amount of loan which can be availed?

The maximum amount of loan which can be availed depends on the net monthly income of the salaried and self-employed individuals. It would be calculated as a multiple of the net monthly salary or the net monthly income of self-employed individuals. For pensioners who avail the personal loan scheme designed exclusively for them the maximum amount would be calculated as a multiple of the net monthly pension. In all the calculations of the maximum loan amount, there would be an absolute amount which would be the maximum ceiling beyond which no loan would be allowed.

• What is the repayment tenure granted for the loan repayment?

The maximum repayment tenure allowed for paying off the loan is a maximum of 60 months for all personal loan variants. For pensioners above the age of 75 years the repayment tenure granted is a maximum of 2 years or 24 months only

• How can the repayment of the personal loan be done?

Borrowers can use multiple ways to make the loan repayments. The instalments can be repaid through post-dated cheques or Electronic Clearing System facility extended by every bank. One can also use the facility of placing a Standing Instruction wherein the loan instalment would be automatically debited from the borrower’s bank account and credited towards the loan account. This method prevents loan defaults and is widely popular besides the ECS facility.

• What is the rate of interest charged on the personal loan?

The rate of interest charged depends on the loan amount and the borrower’s profile. For loans up to Rs.5 Lakhs, the rate of interest charged is MCLR + 6.10%. For loans up to Rs.5 lakhs borrowed by individuals using the bank’s check-off facility, this includes defense personnel as well, the rate of interest would be MCLR + 5.10%. For loans up to Rs.10 lakhs where the salary of employed individuals is disbursed through the bank’s branch including those of the defense personnel, the rate of interest charged would be MCLR + 3.10%. Loan schemes for pensioners have a differentiated rate of interest calculation. Here the interest is linked to the marginal cost of fund based lending and is equal to MCLR + 2.60% per annum.