PNB Home Loan Interest Rates

Punjab National Bank offers home loans under different schemes. Each category of home loan caters to different customer needs and therefore has distinct features. 

The rate of interest under each category varies too. The PNB home loan interest rates for various schemes are as under:

Tip: 50 Lakh Home Loan EMI Interest Rate 2024 before applying for a loan

Punjab National Bank offers home loans at competitive rates of interest. A comparison chart of home loan interest rates with other top banks is as follows:

Additional Info: Also Check Best Banks for Home Loan in India in 2024

Punjab National Bank home loan interest rates range between RLLR + 0.15% to RLLR + 0.40% per annum. As of date (w.e.f. 1st September 2022), the current RLLR applicable is 7.90% per annum. This makes the effective rate of interest between 7.90% – 9.35% per annum. Applicants who meet certain criteria enjoy the advantage of a lower rate of interest. The factors affecting such decisions are:

 Principal amount: At Punjab National Bank, the loan size determines the rate of interest. If the loan value is low, the rate of interest applicable on PNB home loans is on the lower side. For a loan value up to Rs. 30 lakh, the rate of interest charged is RLLR+30%, whereas if the loan value is up to Rs. 75 lakh, the rate of interest is RLLR + 40%.

Applicant’s income: If the applicant’s monthly income is high and is financially stable, he is a preferred candidate for a PNB home loan. The applicant can negotiate the rate of interest with the bank to get a home loan approved at a lower rate of interest. 

Applicant’s credit history: Credit history and CIBIL score are of utmost importance for PNB when it decides its rate of interest. PNB offers home loans at a lower rate of interest if the CIBIL score of the applicant is high. Furthermore, a woman applicant with a CIBIL score above 800 points can further avail of a home loan at the RLLR rate.

Existing relationship with the bank: In case of an existing customer who has a good relationship with the bank backed by a commendable banking record, PNB can negotiate the rate of interest and will approve a home loan at a lower rate of interest.

Type of loan: The purpose for which the loan is availed is also taken into consideration when deciding the applicable rate of interest. Depending upon home loan for constructed properties, purchase of land or a home loan for construction on pre-owned land; the rate of interest will differ under each category.

 Location of Property: If the property is listed in the list of approved properties of the bank or if it is being procured from a trusted builder, the rate of interest can be negotiated with the bank.

Employment Status:  PNB offers preferential rates of interest on home loans to individuals employed with the Central and State government.

Women Applicant: PNB offers a concession of 0.5% per annum in the interest rate to women applicants. Women borrowers with a credit score above 800 can avail of the PNB home loan at the RLLR rate (currently 6.80% per annum).

Additional Info: Best Home Loan Interest Rates @7.90%

The home loan fees and charges applicable on the Punjab National Bank Home Loan scheme are as follows:

Additional Info: Also check DDA Housing Scheme 2024

PNB allows home loan balance transfer from any other financial institution. The home loan balance transfer may help you enjoy a lower rate of interest and thus will substantially reduce EMI payments. The PNB home loan balance transfer rate depends upon loan amount and loan tenure. It ranges between 7.35% and 9.10% per annum. The home loan balance transfer application is approved subject to fulfilling eligibility conditions and submission of required documents.

The PNB home loan balance transfer interest rates are as follows:

EMI is the Equated Monthly Installment that is paid as a monthly expense to repay the borrowed home loan.  The EMI amount is to be paid every month for the entire loan term. The EMI amount is dependent on the loan value, loan term and rate of interest.

It is calculated using a mathematical formula [P x R x (1+R)^N] / [(1+R)^N-1], where P = Principal loan amount, R = Rate of interest and N = Loan tenure in months

The easy availability of online EMI calculators makes this calculation simple and error-free.

 To apply for a PNB Home Loan, the steps involved are:

• Visit the PNB housing finance website https://www.pnbhousing.com/
• Move to the Home Loan tab
• Choose the category of loan you wish to apply for from the drop-down menu
• Read through the features of the selected category
• Click on the ‘Contact Us’ link
• Fill up the requisite form
• Once you submit the online application form, a representative from Punjab National Bank Housing Finance Limited (PNBHFL) will contact you for your loan enquiry.