PNB Housing Finance Loan Against Property Interest Rates
PNB LAP Interest Rate starts at 9.00% for up to 20 years. Apply for PNBHFL Loan against property online for quick approval & disbursal. You can avail doorstep delivery of PNB LAP up to 70% of property value for a range of personal & business needs pledging a residential or commercial property.
About PNB Housing Mortgage Loan
PNB Housing is a subsidiary of one of the largest nationalised banks in India, Punjab National Bank. Having commenced its activities on November 11, 1988, PNB Housing offers a range of exciting products like loan against property, fixed deposits, home loans, and so on.
Though known for its housing loans, the company offers a variety of non-home loans, as well. They include the following facilities:
| Loan Product | Ideal for |
|---|---|
| Commercial Property Loan | Purchasing commercial properties like shops |
| Loan Against Property | Meet individual and business needs |
| Lease Rental Discounting | Loan against rent receivables |
| Loans for Real Estate Developers | Finance to real estate developers for constructing apartment complexes |
PNB Housing Finance Loan Against Property Interest Rates
| Credit score(any loan amount) | Loan Against Commercial Property | Loan Against Residential Property (LAP) | Loan against Plot/ Loan against Special Property* (Residential/Commercial) |
|---|---|---|---|
| >=825 | 9.25% to 9.75% | 9.25% to 9.75% | 9.25% to 9.75% |
| >800 to 825 | 9.35% to 9.85% | 9.35% to 9.85% | 9.35% to 9.85% |
| >775 to 799 | 10.3% to 10.8% | 10.3% to 10.8% | 10.3% to 10.8% |
| >750 to <=775 | 10.9% to 11.4% | 10.9% to 11.4% | 10.9% to 11.4% |
| > 725 to < =750 | 11.3% to 11.8% | 11.3% to 11.8% | 11.3% to 11.8% |
| > 700 to <= 725 | 11.75% to 12.25% | 11.75% to 12.25% | 11.75% to 12.25% |
| > 650 to <= 700 | 11.95% to 12.45% | 11.95% to 12.45% | 11.95% to 12.45% |
| upto 650 | 11.95% to 12.45% | 11.95% to 12.45% | 11.95% to 12.45% |
| NTC Cibil >=170 | 11.85% to 12.35% | 11.85% to 12.35% | 11.85% to 12.35% |
| NTC Cibil <170 | 11.75% to 12.25% | 11.75% to 12.25% | 11.75% to 12.25% |
Points to Note
- PNB Housing offers a floating rate of interest on its Loan Against Property
- The PNB Commercial Loan Interest Rate is higher than that of a loan against residential property.
- PNB Housing offers loans against residential and commercial plots
- The rate of interest on loans against plots is the highest among all the loans against property variants.
- The interest rate is in a range because it depends on the credit rating of the borrower
You can also compare Loan Against Property Interest Rate Online from Top Lenders.
Compare Loan Against Property Interest Rates with Top Banks
Below is the comparison of the PNB LAP Loan Interest Rate with interest rates of other lenders. You can compare the rates offered by different lenders to choose the best option:
| Name of the Lender | Interest Rate (% p.a.) |
|---|---|
| PNB Housing Finance | 9.00% |
| Muthoot Finance | 14.50% - 16.50% |
| State Bank of India | 10.10% - 11.65% |
| LIC Housing Finance | 9.70% - 11.55% |
| IDFC First Bank | 9.00% - 20.00% |
| Federal Bank | 11.15% - 14.80% |
| Home First | 12.80% - 18.50% |
| HDFC Bank | 9.50% - 11.00% |
| Kotak Mahindra Bank | 9.50% - 10.50% |
| PNB Housing Finance | 9.00% |
| Bank of Baroda | 10.85% - 16.50% |
| ICICI Bank | 10.60% - 12.25% |
| Tata Capital | 9% |
| Bajaj Housing Finance | 9% - 12% |
PNB Loan Against Property Features & Benefits
- PNB Mortgage Loan can be used for all personal as well business financial needs, such as children’s education/ marriage, property purchase, business expansion, etc.
- You can avail of a minimum of Rs. 2 Lakhs and a maximum of up to Rs. 15 Crores as loan amount.
- Maximum tenure for PNBHFR LAP can go up to 20 years.
- Disbursement of loan is done in Equated Monthly Installments (EMI) - Monthly Rent Basis.
- The loan is available to Indian Residents only.
- PNB Loan Against Property Interest Rate vary between 9.00% p.a.
- The processing fee for PNB LAP is 2% of the loan amount plus applicable service tax.
- If the market rates go down, the benefits are passed on to the customer in the floating rate structure. It results in a lowering of the EMI or the repayment tenure.
- The floating rate is the ideal one in a stable market where there are not many fluctuations. The customer can enjoy the benefits of the downward swings in the market rate.
You can also check How to Apply for Loan Against Property Without Income Proof.
PNB Housing Finance Loan Against Property EMI Calculator
You can use the PNB Commercial Property Loan EMI calculator available on our portal to know your EMI outgo before applying for the loan. To use the our Loan Against Property EMI calculator, follow the steps given below:
- Open the ‘Loan Against Property EMI Calculator’ available under the ‘Financial Tools’ tab.
- Enter the required loan amount, interest rate, and tenure (in years).
- As soon as you select the above details, the calculator will display the monthly EMI, total interest, and total payment.
Below is an example using our mortgage loan EMI calculator:
Variables:
- Loan amount to be availed of: Rs. 50 Lakhs
- Interest rate: 9.00% p.a.
- Loan tenure opted: 20 years
Outcome:
- Monthly EMI: Rs. 45,793
- Total interest: 59,90,402
- Total Payments: Rs. 1,09,90,402
PNB Housing Loan Against Property - Comparison with Housing Loan
The Loan Against Property is similar to a housing loan in many respects:
- The security for the Loan Against Property and the housing loan is the equitable mortgage of property.
- In the case of a home loan, the property offered as security is the asset created out of bank finance. Hence, it is referred to as prime security.
- In the case of a Loan Against Property, the security is the mortgage of an existing property. Hence, it is termed as collateral.
There are specific distinctions as well between the two products:
- The purpose of a housing loan is to purchase or construct a house/flat
- The Loan Against Property is different because the purpose is to meet individual and business expenses.
As the end-use of the funds is not established, the banks and NBFCs consider the Loan Against Property as riskier when compared to a home loan. Therefore:
- The rate of interest on a home loan is always less than that of a Loan Against Property
- The LTV ratio in the case of a Loan Against Property is higher than the home loan.
The Loan Against Property is more like a personal loan but with collateral. Therefore, PNB Property Loan Interest Rate is less when compared to a personal loan.
PNB Housing Loan Against Property - Comparison with Personal Loan
- The purpose of availing a personal loan is similar to that of a Loan Against Property
- The only difference is in the quantum of the loan and the loan tenure
- As the Loan Against Property is a secured facility, the rate of interest is lower in comparison
FAQs
The ideal way to repay a PNB Housing Loan Against Property is the EMI mode. The borrower can either submit post-dated cheques or register for an ECS mandate for paying the EMIs.
Yes, RBI has made it mandatory for all financial institutions to inform their customers about the changes in the loan terms and conditions. The difference in the interest rate can cause the EMI to vary. Therefore, the borrower should be aware of the variations. PNB Housing can use various methods to inform the borrowers. It can be through email, SMS, or by way of a simple letter.
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