PNB Housing Finance Loan Against Property

Financial emergencies have become part and parcel of modern lives. Expenses like higher education, marriage, starting a new business, medical treatment, etc. require you to spend a lot of money upfront. If you do not have such amount of money in your account, there is a possibility that you might panic. In such a situation property, a piece of land or a completely built home can be a great asset for you.

Most banks and financial companies provide Loan Against Property that can help you meet your upcoming expenses. The best thing about this loan is that the financial institution doesn't have to know what the end purpose is, and you can continue using the property against which you have availed the loan. Whatever your end requirement is, when you need urgent cash and own a property, financial institutions like PNB Housing Finance Limited, provide loans against property for your financial requirements.

Features and Benefits of PNB Housing Finance Loan Against Property

PNB Housing Finance Loan Against Property allows you to meet your upcoming financial requirements in an efficient manner, without stretching your finances. If you are wondering as to why you should apply for a PNB Housing Finance Loan Against Property for your financial needs, here are some reasons that you must make a note of:

  • High-value loans: PNB Housing Finance Loan Against Property is a secured loan. Hence, the main advantage of opting for this type of loan is that the loan amount available is substantial and directly linked to the value of the property. Depending on your credit profile, you can get loan amount as high as 60% of the value of the property.
  • Low interest rates: Interest rates for PNB Housing Finance Loan Against Property start from 9.50% per annum for residential properties and 9.50% against commercial properties. Since PNB Housing Finance Loan Against Property is a secured loan, the interest rates are substantially lower than other unsecured loans such as personal loans. This means you are eligible for high-value loans and entitled to lower interest rates.
  • High chances of approval: Generally, people who don't have a conventional job or a credit history often find it harder to get conventional loans. In such cases, opting for a PNB Housing Finance Loan Against Property increases one's chance of getting the required financial assistance. The reason being that as the property is offered as collateral, the company has the confidence that the risk associated with the loan has reduced significantly.
  • Improve your credit score: Finally, paying off the Loan Against Property on time helps you improve your credit score. As the information is automatically received by the credit bureau, if you successfully pay off the loan on time, your credit score definitely becomes better.
  • Longer repayment tenure: The loan can be repaid in maximum 20 years

PNB Housing Finance Loan Against Property Interest Rates

PNB Housing Finance offers some of the lowest interest rates on loans against property currently available in India today. Depending on the type of Loan Against Property, the interest rates applicable are as follows:

Credit Score (Any Loan Amount)Loan Against Commercial PropertyLoan Against Residential PropertyLease Rental Discounting
Less than Zero10.15%10.15%10.15%
Upto 65010.15%10.15%10.15%
650 to 7009.95%9.95%9.95%
700 to 7509.80%9.80%9.80%
750 to 8009.75%9.75%9.75%
8009.50%9.50%9.50%
Credit Score (Any Loan Amount)Loan against Plot/ Loan against Special PropertyLoan for Purchase of Non-Residential PropertyNRPL-Unnati
Less than Zero10.50%10.15%12%
Upto 65010.50%10.15%12%
650 to 70010.50%9.95%12%
700 to 75010.50%9.80%12%
750 to 80010.50%9.75%12%
80010.50%9.50%12%
  • Cases approved under special program will be charged higher rates above the existing grid (except Unnati cases) as follows: Banking (+0.25%), LIP (+0.50%) and Rental Income Program (+0.50%)
  • Top-up Loans will be priced as per the card rates of "Non-Home Loan".
  • Special property is defined as Educational Institutes/Hotels/Schools/Hospitals/Industrial sheds.

*New festive rates will be with effect from 26th October 2020 till 20th January 2021.

PNB Housing Finance Loan Against Property - Processing Fee and Other Charges

The processing fees and other charges charged for PNB Housing Finance Loan Against Property are as follows:

Processing fees2% of loan + Applicable taxes
Conversion from floating to the floating rate of interest1% of principal outstanding + Applicable taxes
Conversion from fixed to the floating rate of interest3% of principal outstanding + Applicable taxes
Overdue charges2% p.m. on overdue payment + Applicable taxes
Statement of accountRs. 200 + Applicable taxes
Part/full prepayment by the individual borrower (Floating interest rate loan)Free of charge
Part/full prepayment by the non-individual borrower, being applicant or co-borrower (Floating interest rate loan)3% of principal prepaid + Applicable taxes
Part/full prepayment by the individual borrowers/non-individual borrower, being applicant or co-borrower (Fixed interest rate loan)3% of principal prepaid + Applicable taxes
Loan pre-closure  statement or List of original property documents or Photocopies of original property documentsRs. 500 + Applicable taxes

Types of Loan Against Property Offered by PNB Housing Finance

Depending on the type of property provided by the customer as collateral, PNB Housing Finance Loan Against Property can be further classified into three types:

  • Loan against commercial property
  • Loan against residential property
  • Loan against plot (residential/commercial)

Obviously, since the cost and the value of different types of properties are different, the amount of loan provided will also differ. The general policy of PNB Housing Finance is that the maximum loan amount approved will be 60% of that of the value of the property. Additionally, depending on the type of loan applied for, the interest rates will also change.

Eligibility Criteria for PNB Housing Finance Loan Against Property

Just like any other financial institution, PNB Housing Finance Ltd. also has specified eligibility criteria that you need to check out before applying for a Loan Against Property.

Here are the eligibility norms that you must consider before applying for a PNB Housing Finance Loan Against Property:

  • The minimum age for applying for this loan is 21 years. The maximum age, at the time of maturity should not be over 60 years for salaried applicants and 65 years for self-employed applicants.
  • Loan Against Property can be availed by salaried employees and self-employed professionals/ non-professionals. The main criterion considered while applying for this loan is that the applicant should have the potential to repay it.
  • The EMI amount for the loan should not be more than 45% of the monthly income of the applicant.
  • In case of salaried applicants, they should have been employed for at least the last three years. In the case of self-employed applicants, they should have been in business for more than three years with a steady income.

The credit history of the borrower should be clean. This doesn't mean that you shouldn't have had borrowed anything up to that point; the only requirement is that you should have been making on-time payments for the loans you have been approved for previously. Making on-time payments results in a good credit score. A good credit score not only makes getting a loan easy; it will also provide you with leverage to negotiate for a lower interest rate. Ideally, you should have a credit score of 650+ in order to be approved for a PNB Housing Finance Loan Against Property.

Documents Required for PNB Housing Finance Loan Against Property

Listed below are the documents required to be submitted to avail a Loan Against Property by salaried persons, self-employed persons:

ParticularsSalaried personsSelf-employed/ Professionals
Application formDuly filled application form affixed with passport photographDuly filled application form affixed with passport photograph
Age proofPAN Card/ Passport/ Any other certificate issued by Statutory AuthorityPAN Card/ Passport/ Any other certificate issued by Statutory Authority
Residence proofPassport/ Driving License/ Ration Card/  Telephone Bill/ Election Card/ Any other certificate issued by Statutory AuthorityPassport/ Driving License/ Ration Card/  Telephone Bill/ Election Card/ Any other certificate issued by Statutory Authority
Educational qualificationsLatest degreeLatest degree for professionals
Income proof
  • Salary slips for the last 3 months
  • Form 16 of the last 2 years
  • Bank account statements of salary account for the last 6 months
  • Certificate and proof of business existence with Business Profile
  • ITR for the last 3 years (for self and business) with Profit & Loss Account and Balance Sheets (duly certified or audited by a CA)
  • Bank account statements of last 12 months (for self and business)
Property documentsPhotocopy of Property's Title Documents, Approved Plan, etc.Photocopy of Property's Title Documents, Approved Plan, etc.
Processing fee chequeIn favour of 'PNB Housing Finance Ltd.'In favour of 'PNB Housing Finance Ltd.

Calculation of PNB Housing Finance Loan Against Property EMI

The most convenient method to calculate the EMI for PNB Housing Finance Loan Against Property is online. Simply visit the MyMoneyMantra website and you are provided with an automatic EMI Calculator that does the math for you. All you have to do is:

  • Visit the MyMoneyMantra
  • Go to the Financial Tools option and select "EMI Calculator"
  • Simply enter the required information, and you will be provided with the amount of EMI you are expected to pay for a specific loan amount, interest rate, and loan repayment tenure.

You can contact PNB Housing Finance to get any query answered through the following ways:

Phone number: 1800 120 8800

Email Address: customercare@pnbhousing.com

Corporate Office Address:

PNB Housing Finance Ltd, 9th Floor, Antriksh Bhavan, 22 Kasturba Gandhi Marg, Near Connaught Place, New Delhi 110001

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Preapproved ICICI loan against property @8.35% p.a 

ICICI bank loan against property up to 5 crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

PNB Housing Finance Loan Against Property - FAQs

How long does it take to get the Loan Against Property?

It takes around 5-8 days from the day you submit your documents till the loan disbursement, subject to positive reports from the technical and legal department.

How is the disbursement of the loan made?

The total loan amount will be directly paid to the customer's bank account. The disbursement will be made only after the proper appraisal and legal documentation.

How old should I be to get the loan?

The minimum age to apply for a Loan Against Property is 21 years while the maximum age is 60 and 65 years for salaried and self-employed applicants respectively.

Are there any charges for prepayment of the loan?

Prepayment (part/whole) of loan for individual borrowers and at floating interest is completely free of charge.

Can I change the way I pay the monthly EMIs?

Yes, but you will have to provide an application at the office of the PNB Housing Finance regarding your request for the change of the payment method.

What is the credit score I require?

The bank requires a minimum credit score of 650+to approve the loan application.

How long is the maximum repayment tenure of the loan?

The maximum loan tenure permitted by the financial institution is 20 years.