Punjab National Bank

Punjab National Bank Loan Against Property

Apply Punjab National Bank Loan Against Property

About PNB Loan Against Property

With the rising cost of living across all major cities in India, financial problems have somehow become a part of modern day life. Though the retail inflation is rising steadily over the last few years, sadly the income levels are not increasing at the same pace. As a result, you are now more susceptible to financial exigencies which can come up unannounced such as medical expenses, repayment of credit card debts, wedding expenses, higher education expenses, and so on. Financial emergencies do not inform you before their arrival, and no matter how much you try; it is impossible to avoid them. Moreover, if you do not plan your finances accurately, the situation can become even more complicated. Usually, your savings help you tide over these difficult times, but in many cases, the requirement might be so significant that your savings might not suffice. Then you might consider availing a Personal Loan, but the amounts available as a Personal Loan might also not suffice your requirement. Additionally, the interest rates on Personal Loans are also very high, thereby increasing your financial burden.

In such a situation, you need a source of finance that not only offers you high-value loans but also does not burden you with interest cost. One such option that you can avail is a Loan Against Property.

Founded by Lala Lajpat Rai and Dyal Singh Majithia, Punjab National Bank, popularly known as PNB, is an Indian public sector bank which was found on 19th May 1894. It is one of the oldest banks in the country. It was nationalised by the Government of India in 1969 along with 13 other banks. As of now, PNB has over 110 million customers with 7000+ branches all across the nation. Punjab National Bank boasts of 10600+ ATMs across the country. PNB has its overseas branches in cities like Honk Kong, Dubai, and Kabul as well.

Loan Against Property offered by PNB is one of the most popular credit products from the bank. The high-value loans sanctioned to customers with low interest rates and extended repayment tenure, make PNB Loan Against Property an ideal option for addressing emergency financial situations. Some of the noteworthy features of PNB Loan Against Property are:

What is a Loan Against Property?

As the name suggests, Loan Against Property is a loan wherein the lender extends a loan to the borrower in lieu of a property that has to be mortgaged. The property could be residential, commercial or industrial, and the lender creates a primary charge against the property while the borrower can continue using the property for business or residential purpose. As Loan Against Property is a secured loan, lenders offer attractive interest rates and extended repayment tenures, making it easier for the borrowers to make the repayments. Financial institutions offer a Loan-to-Value (LTV) ratio between 40% to 90% for determining the maximum amount available as a Loan Against Property.

Due to the rising demand for a Loan Against Property, many financial institutions are now offering this facility for their customers. One of the most popular options presently available in the market is the PNB Loan Against Property.

Why PNB Loan Against Property?

With multiple financial institutions operating in India, the obvious question that will come to your mind is "Why PNB?" Apart from being one of the oldest and largest public sector banks with pan-India presence, PNB enjoys the trust of over 110 million customers. It offers multiple financial products which are highly sought after by the customers. The transparent and efficient working style also makes Punjab National Bank a popular financial institution in India. If you are looking for reasons as to why you should go for PNB Loan Against Property, then here are some of the standout qualities of the bank:

  • Wide network: Punjab National Bank has a huge branch network across all major cities of India. It is, therefore, easier for the customers to approach the bank in case of any questions or queries.
  • Multiple products: PNB offers an extensive range of financial products for its customers in addition to the standard banking services. Credit facilities like Home Loan, Loan Against Property, Car Loan, Mudra Loan, Credit Card, Personal Loan, and so on address all types of financial needs of the customer.
  • Excellent customer service: With multiple years of experience in the financial market, PNB boasts of efficient and friendly executives, who are always willing to offer the necessary guidance to the customers. Customers can resolve their queries through phone, email, or mobile app easily. The post-disbursal services offered by PNB are also customer-friendly.
  • Multiple repayment options: To offer convenience to customers while repaying the equated monthly instalments (EMIs), PNB accepts repayments through multiple modes. ECS, post-dated cheques, online transfer, and demand draft are some of the popular repayment channels available to PNB customers.
  • Transparent operations: PNB follows a transparent working process. There is no concept of hidden charges, and any applicable charges are disclosed to the customers at the time of submitting the application itself.
  • High value loans: PNB offers high-value Loan Against Property for personal as well as business requirements. The maximum amount available for personal needs is 25 Lakhs while the maximum amount available for business needs is 5 Crores.
  • Extended repayment tenure: PNB offers extended repayment tenure for its Loan Against Property. The maximum repayment period for personal needs is 120 EMIs or up to the age of 70 years, whichever is earlier. For business needs, the maximum repayment period is 144 EMIs for Traders (Retail & Wholesale) and 180 EMIs for Enterprises in Service Sector, Professional and Self-employed, Manufacturing concerns, and Education Institutions.
  • Attractive interest rates: Interest rate for PNB Loan Against Property are directly linked to the MCLR and the risk rating of the borrower. Presently, the interest rate for Loan Against Property as a term loan starts from 10.05% (MCLR + 1.75%) and for a Loan Against Property as overdraft start from 9.95% (MCLR + 1.65%).
  • Quick processing: With its efficient working, PNB is able to process and sanction the applications for a Loan Against Property within a few working days. Though, the approval would only be provided post a favourable report from the legal and technical team of PNB.
  • Freedom to use the money: PNB does not place any restrictions on the usage of the money borrowed as a Loan Against Property. You also need not seek approval from the bank regarding the usage of the money.

A Brief of Punjab National Bank Loan Against Property

Types of loan

  • Loan against residential property
  • Loan against commercial property
  • Loan against industrial property

Repayment

Up to 120/144/180 EMIs

Quantum of finance

  • For personal needs: 1 Lakh to 25 Lakhs
  • For business needs: 5 Lakhs to 5 Crores

Purpose

Personal as well as business needs

Prepayment charges

Nil

Security

Equitable mortgage of the unencumbered residential house/flat or commercial or industrial property (in the shape of building/industrial shed) self-occupied or vacant.

Features & Benefits of PNB Loan Against Property

The major reason behind the significant popularity of Punjab National Bank Loan Against Property is the amazing features offered. Here are some of the noteworthy features of PNB Loan Against Property:

  • The Loan Against Property offered by Punjab National Bank can be used for personal as well as business-related requirements of the customer. There is no need to inform the bank regarding the end usage of the money.
  • If you are seeking a Loan Against Property for a personal requirement, then the amount of loan available ranges between 1 Lakh to 25 Lakhs. If you are taking the loan for business-related requirements, the amount available ranges between 5 Lakhs to 5 Crores.
  • The assessment of the maximum amount that can be sanctioned as a PNB Loan Against Property would be performed by the bank on the basis of three parameters. Out of which the lowest amount will be sanctioned as a Loan Against Property. The parameters followed by the bank are:
  • LTV ratio should not exceed 75% of the market value of the property specified by the valuer.
  • If the Loan Against Property from Punjab National Bank is availed in the form of a term loan, a maximum of three times the gross annual income or the gross profit, whichever is lower.
  • If the loan from Punjab National Bank is taken in the form of overdraft, a maximum of the gross annual income or the gross profit, whichever is lower.

Additionally, the repayment capacity is also considered by the bank to determine the maximum available amount as a Loan Against Property.

  • If any individual wants to avail the facility of Loan Against Property, his/her net income should be at least double of the EMI amount.
  • If any business enterprise wishes to avail a Loan Against Property, the net annual income should be 1.5 times the EMI.
  • In case of a term loan, the bank charges a processing fee of 0.90% of the total amount of loan sanctioned, subject to a maximum of 45,000.
  • In case of an overdraft facility, the processing fee that needs to be paid by the customer is 225/lakh of the loan amount sanctioned.
  • An amount of 1,500 plus GST would be charged in the form of documentation charges
  • PNB does not levy any foreclosure charges on pre-payment of the Loan Against Property
  • The term loan granted should be repaid back with interest within a period of 120 months or before the applicant attaining the age of 65 years.
  • In the case of an overdraft facility, the drawing power would be decreased every month on a pro-rata basis.

PNB Loan Against Property - Rate of Interest

One of the biggest benefits of PNB Loan Against Property over other lenders is the extremely competitive interest rates offered to the customers. The rate of interest payable on Punjab National Bank Loan Against Property is directly linked to the Marginal Cost of Funds Based Lending Rate (MCLR). PNB revises its MCLR periodically and then charges a premium over it based on the risk profile of the customers as well as the expenses and profits for the bank.

The current 1-year MCLR of the bank is 8.30% with effect from 01.08.2019. Presently, the interest rate for PNB Loan Against Property (Term Loan) starts from MCLR +1.75% and goes up to MCLR +6%. The interest rate for PNB Loan Against Property (Overdraft) starts from MCLR +1.65% and goes up to MCLR +5.50%.

PNB Score/ Risk Rating Overdraft Term Loan

A1/>80

1Y MCLR + 1.65 = 9.95%

1Y MCLR + 1.75 = 10.05%

A2/>70=80

1Y MCLR + 1.75 = 10.05%

1Y MCLR + 2.25 = 10.55%

A3/>64=70

1Y MCLR + 2 = 10.30%

1Y MCLR + 2.45 = 10.75%

A4/>58=64

1Y MCLR + 2.35 = 10.65%

1Y MCLR + 2.75 = 11.05%

B1/>52=58

1Y MCLR + 2.55 = 10.85%

1Y MCLR + 3 = 11.30%

B2/>46=52

1Y MCLR + 3 = 11.30%

1Y MCLR + 3.50 = 11.80%

B3/>40=46

1Y MCLR + 3.50 = 11.80%

1Y MCLR + 4 = 12.30%

C1/>35=40

     1Y MCLR + 4 = 12.30%

1Y MCLR + 4.50 = 12.80%

C2/>25=35

1Y MCLR + 4.50 = 12.80%

1Y MCLR + 5 = 13.30%

C3/=25

1Y MCLR + 5.50 = 13.80%

1Y MCLR + 6.50 = 14.80%

Punjab National Bank also offers concession in the interest rate on the basis of the realizable value of the collateral.

  • If the value of the collateral is 200% to 250% of the loan amount, then the concession available would be 0.25%.
  • If the value of the collateral is 250% to 300% of the loan amount, the concession available would be 0.50%.
  • If the value of the collateral is above 300% of the loan amount, the concession available would be 0.75%.
  • Term loans that are to be repaid in 3 years or more, attract a supplementary term premium of 0.50% per annum.

Types of Loan Against Property Offered by PNB

Punjab National Bank provides three different types of Loan Against Property for its customers. The maximum amount available to the customer depends upon a number of factors such as type of property, the value of the property, credit profile of the customer, repayment capacity, etc. Following are the three different types of Loan Against Property offered by PNB:

  • Loan Against Residential Property: Residential properties like flats, apartments, villas, houses can be mortgaged with the bank to avail a Loan Against Residential Property.
  • Loan Against Commercial Property: Customers owning commercial properties like offices, shops, showrooms, etc., in approved buildings and markets can avail a Loan Against Commercial Property from PNB.
  • Loan Against Industrial Property: Customers owning industrial properties like factories, warehouses, godowns, etc. can avail Loan Against Industrial Property for their business-related requirements.

Documents Required for PNB Loan Against Property

Applicants who wish to avail the facility of Punjab National Bank loan against the property must submit these documents in order to get quick and easy approval.

Common Documents

  • Address and proof of age (anyone of the following)
    • Voter ID card
    • Passport
    • SSC Certificate
    • PAN Card
    • Ration Card
    • Driving License
    • 2 coloured passport-sized photos of the applicant, guarantor, and co-applicant(s)

Income Documents

  • For Salaried Individuals:
    • Salary slip or certificate of the salary of the previous 3 months
    • Income tax assessment order or income tax returns for the previous 3 years
  • For Professionals:
    • Copies of balance sheets and income statement for the past 3 years certified by a chartered accountant.
    • IT assessment order or IT returns for the previous 3 years
    • Bank account statement from the existing bank for the previous 6 months
  • For Businessmen:
    • Copies of the balance sheet and profit and loss account for the previous 3 years certified by a chartered accountant
    • IT assessment order or IT returns, and tax paid receipts for the previous 3 years Bank account statement from the current banker for the previous 6 months

Note: If the applicant is not running an account with the bank, he/she will have to provide post-dated cheques or ECS mandate or EMI repayment through their bank account.

Property Documents

  • Registered sale deeds/conveyance/lease deeds
  • Past sale deeds chain (each transaction in respect of this property since the first allotment)
  • Latest house tax returns/receipts
  • Approved building plan from the municipal corporation
  • Property title documents and all the link documents that prove the title of the property, like sale deed and earlier title deeds.
  • Updated certificate of encumbrance for the previous 13 years
  • The latest property tax paid receipts
  • The legal opinion from the Punjab National Bank approved advocate on the title to the property
  • Copies of approved plan and license of building
  • Report on property valuation from approved civil engineer
  • Copy of Occupancy Certificate issued by the appropriate local authority

Eligibility Criteria for PNB Loan Against Property

For the approval of Punjab National Bank Loan Against Property, individuals must fulfill the below-mentioned eligibility criteria:

  • Loan for personal needs is provided to those individuals who are employees of any central or state government body, schools, colleges, public sector undertakings, reputed companies, and other income tax assesses. They should be below the age of 70 years.
  • Business enterprises seeking Punjab National Bank Loan Against Property needs to be an existing customer of the bank with a satisfactory track record for the last 3 years. The track record of the customer is represented by the net income in the last 3 years and net profit in the preceding year.
  • Salaried employees should have a minimum net monthly salary of 25,000
  • Other income tax assesses should have a net annual income of minimum 3 Lakhs
  • Business enterprises should have a minimum net annual income or net profit of 3 Lakhs

Quantum of Finance

The maximum amount available as a Loan Against Property from Punjab National Bank depends on a number of factors such as credit profile of the customer, the value of the property, and risk assessment of the bank. PNB has capped the maximum amount available as a Loan Against Property for the customers based on the nature of the requirement, specified below:  

  • For personal needs: 1 Lakh to 25 Lakhs
  • For business needs: 5 Lakhs to 5 Crores

PNB Loan Against Property Assessment of Limit

The assessment criterion followed by PNB to arrive at the maximum amount to be offered as a Loan Against Property is based on three parameters: -

  • Maximum of 75% of the realizable value of the property
  • Maximum three times of the Annual Gross Income/Gross Profit, whichever is less (in case of term-loan).
  • Maximum four times of Annual Gross Income/Gross Profit, whichever is lower (in case of over-draft)

Maximum permissible subtraction of Net Monthly Salary/Annual Profit after Tax is as given below:

Parameters Max. Permissible deduction of NMS/I/ANPAT

 

For salaried/other IT assesses/business enterprises

NMS/I/up to 0.50 Lakh or ANPAT up to 5 Lakhs

50%

NMS/I/above 0.50 Lakh up to 1.25 Lakhs or ANPAT above 5 Lakhs to 15 Lakhs

60%

NMS/I above 1.25 Lakhs or ANPAT above 15 Lakhs

70%

PNB Loan Against Property - Balance Transfer & Top Up Features

Loan Against Property from Punjab National Bank offers a variety of benefits to the customers. One of the noteworthy benefits that you can get with the Punjab National Bank is an option for the Loan Against Property Balance Transfer. Herein, if you are currently running a high-interest bearing Loan Against Property from another financial institution, you can transfer that loan to PNB at lower interest rates and friendlier terms and conditions. PNB will pay-off your existing loan, helping you to close your Loan Against Property account with the previous lenders and then open a new loan account under your name. However, this facility is subject to the eligibility criteria of the bank.

PNB Loan Against Property - Processing Fee & Other Charges

The charges associated with PNB Loan Against Property are as follows:

Types Charges

Processing fees

  • Term Loan Loan Against Property: 0.90% of loan amount (minimum 5,000 and maximum 1,25,000) + GST.
  • Overdraft Loan Against Property: 300 per lakh or part thereof on yearly basis + GST.

Documentation charges

  • For loan up to 25 Lakhs: 2,500 + GST
  • For loan above 25 Lakhs: 5,000 + GST

Security inspection and verification charges

  • 250 + GST
  • To be paid at least once every year for regular accounts, at least once every half year for irregular accounts, and at least once in 3 months for NPA accounts.

Why Apply for PNB Loan Against Property on MyMoneyMantra?

You avail multiple benefits when you apply for Punjab National Bank Loan Against Property on MyMoneyMantra, as the entire process is online, effortless and convenient. Being in partnership with more than 90 banks and other financial institutions, our experts have the knowledge and expertise to make your journey, right from the application to the disbursal, as easy and hassle-free as possible. Additionally, for most people, the world of finance seems complicated; hence, having someone knowledgeable by your side to navigate you through this process can make it easier and more convenient. MyMoneyMantra is an online platform where financial specialists assist applicants and help them through the entire process of application, document submission, verification, and disbursement and thus help customers avail the loan in the most hassle-free and convenient manner possible. Moreover, as all the operations are conducted online, you don't even have to leave the comfort of your home to avail the advantage and convenience offered by our services.

How to Apply for PNB Loan Against Property Using MyMoneyMantra?

Having a financial expert like MyMoneyMantra help you when applying for a Loan Against Property is advantageous and convenient. Getting on board is very easy; all you have to do is to visit our website and provide your information, and we will take care of the rest. Following are the steps that you need to follow:

  • Go to our website
  • Hover on the loans tab and select "Loan Against Property"
  • Enter your details and click on "Submit"
  • Enter the OTP that you will get to your registered mobile number

And, you are through; all you have to do now is to wait for a call from our representative who will walk you through the entire process of applying for and getting a Punjab National Bank Loan Against Property simply, quickly, and conveniently.

Calculation of PNB Loan Against Property EMI

The most convenient method to calculate the EMI for PNB Housing Loan Against Property is online. Simply visit the MyMoneyMantra website, and you can access our EMI Calculator that will do the math for you. All you have to do is:

  • Visit MyMoneyMantra
  • Go to the "Financial Tools" tab 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 tenure.

PNB Loan Against Property - Customer Care

The process of getting a Loan Against Property is complex and requires you to execute all the steps carefully. It is obvious to have queries in mind while going through such a complicated process. With Punjab National Bank, you can easily get all your queries answered. Punjab National Bank provides you with the facility to call their customer care for any kind of complaint or query. The bank's representatives are very polite and clear all your doubts with utmost sincerity.

For any query you can call at- 1800-180-2222 or 1800-103-2222

These are toll-free numbers and are available during working hours or you can even mail your concerns at care@pnb.co.in.

PNB Loan Against Property - FAQs

What is the quantum of loan available from PNB as a Loan Against Property?

The quantum of the standard Punjab National Bank Loan Against Property is in the range of 1 Lakh to 25 Lakhs for personal needs and 5 Lakhs to 5 Crores for business needs. The quantum of loan sanctioned is also dependent on the repayment capacity of the applicant and the market value of the property. 

Which type of charges are levied against PNB Loan Against Property?

PNB is very transparent in its dealing with customers and does not levy any hidden charges. All processing charges and other applicable fees are conveyed to the customers at the time of submission of the application itself. The charges levied presently for a Loan Against Property are processing fees, documentation charges, and security inspection and verification charges. Additional GST will be applicable with these charges.

What is the customer care number of Punjab National Bank?

Customer can call either at 1800-180-2222 or 1800-103-2222. These numbers are toll-free and are available 24x7.

What are the three parameters on which the assessment of limit of the amount to be offered as a Loan Against Property is fetched out?

The assessment limit for a Loan Against Property from PNB is fetched out on the basis of 3 parameters: -

  • Maximum of 75% of the realizable value of the property
  • Maximum 3 times of the Annual Gross Income/ Gross Profit, whichever is less (in case of term loan)
  • Maximum 4 times of Annual Gross Income/Gross Profit, whichever is lower (in case of overdraft)

What is PNB Loan Against Property Transfer Feature?

Punjab National Bank offers the facility of balance transfer of Loan Against Property. Herein, if you have an existing Loan Against Property with another financial institution, you can transfer the loan amount to PNB at lower interest rate. This will help you reduce your EMI payments and save on the interest cost that you will have to bear.

What is the time taken by PNB to process an application for a Loan Against Property?

Although the time taken to process the application is highly subjective generally speaking, if you are able to provide all the documents along with a completed application form, PNB will process your application within two weeks.

Will I have to vacate the property after availing a Loan Against Property from Punjab National Bank?

No, when you avail a Loan Against Property from Punjab National Bank, you need not vacate the property. The bank creates a primary charge against the property in CERSAI, which stops you from selling the property, but it does not mean that you need to vacate the property. You can continue using it like before as long as you repay your EMIs on time.

Can I foreclose my Loan Against Property with Punjab National Bank?

Yes, you can foreclose your PNB Loan Against Property account without any problems as the bank does not levy any foreclosure charges. This helps you repay your loan before the scheduled closure and save on your interest cost.

Latest News Snippets

25 July 2019: Punjab National Bank plans to raise 5,000 crore equity capital

Punjab National bank on 25 July said its board has approved raising 5,000 crore through public offer. This decision was taken in the board meeting that was held on 25th July. The board has granted approval for raising equity capital amounting up to 5,000 crore in one or more tranches through Qualified Institutional Placements (QIP) or Follow-on Public Offer (FPO) or Rights Issue.

08 August 2019: Punjab National Bank Recovers 278 crore minimum balance penalty from account holders

Punjab National bank has recovered 278.66 crores as a penalty in the financial year 2018-19 from the poor account holders for not maintaining a minimum balance. This was disclosed after an RTI activist in Madhya Pradesh's Neemuch district, Chandrashekhar Gaur sought information from the Punjab National Bank on the amount recovered from the account holders in the last two financial years for not maintaining a minimum balance in savings and current account. This amount has been recovered from about 12.7 million customers across the country.

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