Fulfilling PNB loan against property eligibility criteria you can quickly avail loans up to 65% of property value for your personal or business needs. Both salaried as well as self-employed professionals/ non-professionals can apply for PNB loan against property up to 5 Crore for up to 15 years. The minimum income should be Rs 25000 per month.
PNB Housing Finance Limited, a subsidiary of Punjab National Bank, offers a variety of home loans and non-home loans to its clientele located all over the country. The non-home loans comprise of the following products:
Of the four non-home loan products on offer from PNB Housing, the Loan Against Property and Lease Rental Discounting facilities require collateral.
|Loans Against Property|
Purpose of the loan
Rate of interest
|Lease Rental Discounting|
Rate of interest
The eligibility criteria for the loan are as follows:
|Loan Against Property|
|Lease Rental Discounting|
The following factors determine the eligibility of the borrower:
Opening of an Escrow account is necessary for availing the Lease Rental Discounting product. The purpose of this account is to ensure the prompt recovery of the loan instalments. The lessee undertakes to credit the rent amount into the Escrow account. PNB Housing recovers the EMI and then disburses the balance amount to the borrower.
The applicant should provide self-attested photocopies of the following documents:
The loan eligibility depends on the following factors:
The borrower cannot influence the value of the security. Therefore, the only way to enhance eligibility is to increase the income or reduce the existing liabilities.
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PNB Housing offers a floating rate of interest on its loans against property. It refers to the PNBHFR, its benchmark rate for determining the individual interest rates. The reference rate today is 9.70%. PNB Housing adds its spread over the PNBHFR before offering the rate to the individuals.
PNB Housing calculates interest on the monthly reducing balance. It is similar to how most of the NBFCs do. Banks, on the other hand, use the daily reducing balance mode that is beneficial to the borrower.
Subject to the satisfaction of income and repayment norms, the maximum eligibility under the Loan Against Property is 60% of the property value. PNB Housing Finance has valuation experts in its panel who estimate the realisable market value of the property. The loan amount cannot exceed 60% of this value under any circumstances.
The rental income earned by letting out the property is the primary criterion for estimating loan eligibility. The eligibility depends on the rent receivables for the residual period of the lease.
All of these factors play a vital role in determining individual loan eligibility.
If the property is jointly owned, all the co-owners of the property automatically become co-applicants. It does not matter if any of the co-applicants have any source of income or not. Other than the co-owners, the following persons can join as co-applicants for enhancing the overall eligibility of the borrowers.
Under such circumstances, these co-applicants can provide their income details to enhance the overall loan eligibility.
The borrower has to create an equitable mortgage of the property for both the facilities. Besides, the Lease Rental Discounting facility requires the borrowers to assign their rental income in favour of PNB Housing.
Such a situation can arise in the Lease Rental Discounting product. PNB stipulates the condition of the opening of an Escrow Account for collecting the proceeds of the rental income. The lessee has to undertake to deposit the rent into this Escrow account. PNB Housing recovers its EMI from this account before making the balance available to the borrower.
The objective of a Loan Against Property is to meet personal and business requirements. However, the borrower should undertake not to use the funds for illegal and speculative purposes.
If any investment promises to deliver an abnormally high return, and that too within a short period, it is a risky proposition. Such an investment qualifies as a speculative investment.
Some of the examples of speculative investment are: