PNB HFL Home Loan: A Borrower’s Guide on Terms & Conditions

17 Dec 2019 // 24 min read // Home Loans
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PNB Housing Finance Ltd. is a prominent housing finance company in India. The NBFC offers various types of financial products for its customers, including Home Loan, Loan Against Property, and Fixed Deposits. Out of the various products offered by the company, the most popular offering is the Home Loan. Every year, thousands of prospective homeowners realise their dream of buying their own home through Home Loans offered by PNB Housing.

Though, you must remember that a Home Loan is a significant financial responsibility. Therefore you must avail of a PNB Housing Loan only after thoroughly researching various aspects of the offer.

Key features of PNB Housing Loan

  • Maximum loan amount: The maximum amount available as a Housing Loan depends on the market value of the property.
    • For property with a value up to Rs. 30 Lakhs – Up to 90% of the market value
    • For property with a value between Rs. 30 Lakhs to Rs. 75 Lakhs – Up to 80% of the market value
    • For property with a value above Rs. 75 Lakhs – Up to 75% of the market value
  • Interest rate: PNB housing loan interest rates are based on floating rate structure and vary according to the nature of employment of the applicant.
    • For salaried individuals – The rate of interest varies between 9.25% to 11% per annum.
    • For self-employed professionals – The rate of interest varies between 9.25% to 11% per annum.
    • For self-employed businessmen – The rate of interest varies between 9.50% to 11%.
  • Repayment Tenor: The maximum repayment tenor available for Home Loan by PNBHFL is 30 years. The loan amount must be repaid in EMIs through ECS facility or post-dated cheques only. Customers can foreclose the loan account only after completion of a period of one year since the disbursal of the loan.
  • Processing Fee: You will have to pay a processing fee of 1% of the loan amount plus GST as applicable at the time of submitting your application. In case your Housing Loan application is rejected, the processing fee will be refunded after deducting Rs. 3,000 (plus taxes) towards property valuation charges.

Important terms and conditions of PNB HFL Home Loan

It is imperative for you to understand the terms and conditions of the PNB Housing Home Loan offers before signing on the loan agreement. Here are the important terms and conditions:

Home Loan Interest Rates Online

  • Interest Rate: The rate of interest applicable to Housing Loans can vary as fixed, floating, or fixed + floating.
    • Under the fixed interest rate system, the rate of interest remains unchanged during the entire tenor of the loan.
    • Under the floating rate system, the interest rate will be revised periodically as per market conditions.
    • Under the fixed + floating rate system, the interest rate will remain fixed for a fixed period and will then be revised as per the discretion of PNB Housing Finance Limited.
    • Borrowers need to pay switch charges to covert from a fixed-rate system to a floating rate system. It is available at the sole discretion of the company.
    • Any changes in the interest rates will be communicated through email, SMS, and post.
  • Fees and charges: PNB Housing finance reserves the right to revise applicable fees and charges periodically. The below-mentioned details are valid as of 31st October 2019.
    • Processing charges are 1% of the loan amount plus taxes.
    • The income tax certificate is provided without any additional charges.
    • The statement of account is provided on payment of Rs. 200 plus GST.
    • Part-prepayment of loan on floating rate can be made without paying any additional charges by individual borrowers.
    • Part/ full prepayment of loan on fixed rate can be made by paying 3% pre-payment charges by individual borrowers.
    • Full pre-payment of Housing Loan on floating rate can be made without paying any charges.
    • Overdue charges of 2% per month are applicable on the overdue payment.
  • Security for the loan: PNB Housing Finance will create the first and exclusive charge on the property purchased with the loan amount. The property must have clear & marketable title. All original document, maps, and deeds shall remain in the custody of PNB Housing Finance.
  • Insurance: It is the responsibility of the borrower(s) to make sure that a valid insurance policy is in place securing the property as well as the life of the borrower(s). The beneficiary of the policy should be PNB Housing Finance Ltd. The payment of premium is the responsibility of the borrower.
  • Repayment: The borrower must ensure that the EMI is paid in full every month on the due date. EMI must be paid either through post-dated cheques or ECS option. In case of any delay in the payment or bounce of cheque, penal charges shall be levied by the company at prevailing rates. PNB Housing Finance can revise the EMIs or repayment tenor under certain circumstances. The borrower must provide fresh cheques or ECS mandate.
  • Prepayment: The borrower can make pre-payment against the Home Loan account by providing 30-day advance notice in writing to the company.
  • Recovery:In case the loan comes to an NPA due to non-payment of EMIs, PNB Housing Finance reserves the right to initiate recovery proceedings as per prevailing rules and guidelines. If required, PNB Housing Finance can attach the secured property and auction it to recover the outstanding amount.

PNB Housing Finance offers a host of Home Loans for customers. You must understand which option is most suitable for your requirements before proceeding ahead with your application. Having a thorough understanding of terms and conditions will help you in making an informed decision.

 

Also read : Let’s Review 2019 PNB Housing Loan Offers

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