PNB Housing Finance 
Loan Against Property Interest Rates

PNB LAP Interest Rate starts at 9.25% - 12.45% 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 ProductIdeal for
Commercial Property LoanPurchasing commercial properties like shops
Loan Against PropertyMeet individual and business needs
Lease Rental DiscountingLoan against rent receivables
Loans for Real Estate DevelopersFinance to real estate developers for constructing apartment complexes

Apply for IDFC Loan Against Property

PNB Housing Finance Loan Against Property Interest Rates

Credit score(any loan amount)Loan Against Commercial PropertyLoan Against Residential Property (LAP)Loan against Plot/ Loan against Special Property* (Residential/Commercial)
>=8259.25% to 9.75%9.25% to 9.75%9.25% to 9.75%
>800 to 8259.35% to 9.85%9.35% to 9.85%9.35% to 9.85%
>775 to 79910.3% to 10.8%10.3% to 10.8%10.3% to 10.8%
>750 to <=77510.9% to 11.4%10.9% to 11.4%10.9% to 11.4%
> 725 to < =75011.3% to 11.8%11.3% to 11.8%11.3% to 11.8%
> 700 to <= 72511.75% to 12.25%11.75% to 12.25%11.75% to 12.25%
> 650 to <= 70011.95% to 12.45%11.95% to 12.45%11.95% to 12.45%
upto 65011.95% to 12.45%11.95% to 12.45%11.95% to 12.45%
NTC Cibil >=17011.85% to 12.35%11.85% to 12.35%11.85% to 12.35%
NTC Cibil <17011.75% 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 LenderInterest Rate (% p.a.)
PNB Housing Finance9.25% - 12.45%
Muthoot Finance14.50% - 16.50%
State Bank of India10.10% - 11.65%
LIC Housing Finance9.70% - 11.55%
IDFC First Bank9.00% - 20.00%
Federal Bank12.60%
Home First 12.80% - 18.50%
HDFC Bank9.50% - 11.00%
Kotak Mahindra Bank9.15% - 10.50%
PNB Housing Finance9.25% - 12.45%
Bank of Baroda10.85% - 16.50%
ICICI Bank10.85% - 12.50%
Tata Capital10.10%
Bajaj Housing Finance9% - 14%

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 9.25% - 12.45% 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:


  • Loan amount to be availed of: Rs. 50 Lakhs
  • Interest rate: 9.25% - 12.45% p.a.
  • Loan tenure opted: 20 years


  • 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.

HDFC Home Loan Offer

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


What benchmark rate does PNB Housing Ltd follow when determining the interest rate on Loan Against Property?


PNB Housing is an NBFC. Hence, it does not follow the repo rate or the MCLR that commercial banks do when determining their interest rate on retail loans. PNB Housing refers to its Prime Lending Rate for Non-Housing purposes, PNBHFR. This rate is linked to market forces that determine its rise of fall at frequent intervals. Various other aspects also go towards determining this lending rate.

What factors define the individual rate of interest of loans against property?


The individual rate of interest on loans against property depends on the following factors:

  • The nature of security offered: The rates for commercial property are different when compared to residential property. Similarly, the rates for loans against residential/commercial plots are also different when compared to fully-constructed properties.
  • The credit rating of the borrower: Generally, the higher the credit score better is the rate of interest.
  • The occupation of the borrower: Usually, salaried employees are considered safer when compared to non-salaried self-employed individuals.

In the case of an interest rate variation, what is the better option for a borrower, increase the EMI or the tenure?


The beneficial option is always to increase the EMI whenever the rate of interest goes up. The EMI comprises of an interest repayment component and principal repayment component. As the interest rate goes up, the interest repayment component also increases. Therefore, the principal repayment portion will decrease if you keep the EMI constant. It will cause a cascading effect on the interest calculation for the following months. Therefore, it is better to increase the principal repayment component, as well, thereby increasing the EMI.

How does PNB Housing treat the EMI under such circumstances?


PNB Housing has two options before it. One is to increase the EMI depending on the rise in the interest rate. It entails keeping the repayment tenures as constant. The alternative is to keep the EMI constant, thereby increasing the mandate. In the initial stages of the loan, PNB Housing prefers to keep the EMI constant. However, they cannot increase the tenure beyond a specific level. Therefore, increasing the EMI remains the only option.

What are the different modes of repayment allowed in a PNB Housing Loan Against Property?


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. 

Does PNB Housing inform the borrower whenever there is a variation in the interest rate?


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.

Can the borrower know in advance what the prospective EMI of the Loan Against Property will be?


Yes, PNB Housing offers the facility of the EMI calculator that helps to calculate the EMI in advance. It helps the borrower to understand the financial liability and also maintains his/her to ascertain the affordability, as well.

How does PNB Housing calculate interest on Loan Against Property?


PNB Housing calculates interest on the monthly reducing method. This method works out in the following way. This example will help you understand the concept.

The interest for November is calculated on the outstanding balance as of the last day of October. Similarly, the outstanding balance on the last day of November is the base for calculating the interest for December.

Is this method beneficial to the borrower?


In a way, it does not benefit the borrower. This calculation envisages that it does not calculate the interest benefit for the instalment you deposit during the month. In the regular course, the EMI is payable by the 10th of the month. Therefore, the borrower loses out on the interest benefit on the EMI amount for an average of 20 days every month. Over the entire loan tenure, it can snowball into a substantial figure.

Is this method different from what commercial banks use?


Yes, commercial banks calculate interest on daily reducing balances. This method offers the highest benefit to the borrowers. It is a more transparent mode of calculating interest.

You can also check Commercial Property Loan Online.

What is interest rate of PNB on loan against property?


PNB LAP Interest Rate varies between 9.25% - 12.45% p.a. depending on the borrower’s category, credit score, and other eligibility factors.

What is the difference between PNB and PNB Housing Finance?


PNB Housing Finance Limited is an Indian housing company registered with National Housing Bank (NHB). It was incorporated under the Companies Act, 1956 and commenced its operations on 11 November 1988. PNB Housing Finance is promoted by Punjab National Bank (PNB).

What is PNBHFR Full Form?


PNBHFR is the rate of interest as on Reset Date based on the Reset Frequency decided by PNBHFL from time to time based on the type of customer and product, prevailing market conditions, guidelines of any statutory authority, and as per the internal policy of PNBHFL.