Punjab National Bank offers tailor made housing loan solutions to help customers from different backgrounds realize their dream of buying a home. From in-house loan products to government based subsidy schemes, PNB Home Loan gives you a large variety to choose from. The competitive interest rates and the need based financing option, makes this one of the most reliable sources for the funds that you need to buy, construct or renovate your home.

Punjab National Bank offers an array of home loan products with the following features:

For an approval on your PNB Home loan, the following documents are required:

• Duly filled loan application form with 2 passport sized photos.
• Property documents: Sale deed of the property, Sale agreement, Copy of the approved plan for construction and renovation, estimate of cost in detail or valuation of property, Allotment letter for property by the Housing society or NOC from society, builder or housing board, Property tax receipt.
• Proof of Income for salaried individuals: 6 month Salary certificate, 6 months salary account statement, 2 years IT returns and form 16,
• Proof of Income for non-salaried individuals: IT returns for the last two years, PL account and balance sheet, 6 months bank statements, note about the nature of business, registration certificate for business.

Additional Info: Also check Documents Required For Home Loan

Documentation is the most important part of your loan application. Here are the mandatory documents to have your loan processed:

• Application form along with 2 passport size photos.
• ID Proof: Passport, PAN Card, Driving License, Adhaar Card, Voters ID.
• Age Proof: Driving License, Insurance Policy, Passport, Birth Certificate, School Leaving Certificate, PAN Card or Adhaar Card.
• Address Proof: Utility Bills, Property Tax Receipts, Property Registration Document, Voters ID.
• Proof of Employment for salaried individuals: Appointment letter, Employee ID card, Letter from the employer.
• Income proof for salaried individuals: Salary slip for last 3 months, yearly increment letter, appointment letter, or certified copy of Form 16, Statement of salary account for last 6 months
• Income proof for self-employed individuals: Last 2 years IT returns, Business profile, Registration certificate of the business, current account statement for last 6 months, bank statements for OD or credit card facilities.
• Loan documents: Bank account statement of any existing loan.

Documents Required by Salaried Individuals

For salaried individuals, the documents that need to be submitted along with the application form and 2 passport size photos are:

• Employer ID card or tag.
• Property Documents: Permission for construction, if needed, Copy of the approved plan, sale agreement, Allotment Letter, occupancy certificate in case of property that is ready to move into, registered development agreement from builder, account statements or receipts for payments made to seller or builder
• ID proof: PAN card/ Adhaar Card/ Passport/ Driver's License/ Voters ID
• Residence Proof: Driver's License/ Passport/ Utility Bills/ Rental Agreement/ Adhaar Card
• Income proof : 6 months bank statements for all the accounts of the applicant, loan account statement for last one year if applicable, salary slip for last 2 months, Form 16, Copy of 2 years IT returns.

Documents Required by Self Employed Individuals

All documents besides the income proof are the same for salaried and self-employed individuals. The additional documents to be submitted by self-employed individuals are:

• Proof of address for business
• IT returns for last 2 years
• Balance Sheet for last 2 years along with Profit and Loss Statements.
• Business license or registration.
• TDS certificate or Form 16A if applicable.
• Certificate of qualification is necessary for professionals like CA and doctors

Documents Required by Pensioners/ Senior Citizens

In addition to property documents, pensioners and senior citizens are required to submit the following with the application form:

• 2 passport sized photographs
• Age Proof: PAN Card or Passport
• Income Proof: Pension returns and Bank Statements for last 6 months.
• ID proof: Driving License/ Passport/ Voters ID/ PAN Card/ Aadhaar Card
• Residence proof: Registered rental agreement/ Aadhaar Card/ PAN card/ Passport

Documents Required by NRIs

The documents to be furnished for PIOs and NRIs for a home loan in addition to the ID proof, property documents and a fully filled application form are as follows:

• Attested copy of the latest passport and visa.
• Copy of CDC or Continuous Discharge Certificate of Merchant Navy Employees.
• Government issued PIO card.
• Address proof with current address overseas.
• ID proof: Adhaar Card, passport, Voter's ID, Driving License or PAN Card.
• Last 6 months account details for any overseas account
• Loan account statement for 1 year if applicable
• Income proof for salaried individuals:
• Valid work permit
• Contract of employment in English.
• 3 months salary certificate or slip.
• Attested copy of recent Individual Tax Return except for PIOs and NRIs in the Middle East or for Merchant Navy employees.
• Income proof for non-salaried individuals:
• Address proof for business
• Income proof for self-employed professionals or business owners.
• Attested copy of last 2 years Individual Tax Return except for PIOs and NRIs in the Middle East or for Merchant Navy employees.
• Bank account statement of overseas account for last 6 months.

Documents for NRIs may be attested FOs, officers of the Indian Embassy, Overseas Notary Public or Consulate, officials of the brand or any Indian Based sourcing outfits.

Additional Info: Also check Sukanya Samriddhi Yojana

Whether you are a salaried individual or a self-employed individual, you are required to submit your bank statements along with your application form. Usually, banks require you to submit bank statements for the last 6 months.

First, the bank statement reveals your repayment capacity. It is a record of all your credits and debits in a month. That way, the bank is able to assess if the proposed EMI will fit into your budget. The bank calculates your net salary which is the final take home salary after making all the deductions. The EMI must not be more than 40% of this amount for you to be eligible for a home loan.

Second, the bank is able to verify all the credits made to your account. They may require additional documents to support any credits from unknown sources. This is a measure taken by the bank to prevent fraudulent transactions in the future.

The bank statement also shows payments made towards existing loans and credit facilities such as credit cards. This helps assess the reliability of the applicant. If the repayments made towards the current loans are regular, then the applicant is more eligible to get a housing loan.

Upon repayment of your loan, the bank will provide you with a no objection certificate stating that you no longer have any pending dues. This certificate is mandatory for you to recover your property papers from the bank. During the tenure of the loan, the bank has possession of the original loan papers.

The sale deed, especially, is the most important document to support your ownership over the property. An NOC will also be useful in applying for a second loan with another institution. It is also necessary when you are making a balance transfer from one bank to the other. Most importantly, the property is completely under your ownership only after you have repaid the loan and collected the NOC from the bank. This is necessary for insurance claims or any other financial transactions with respect to your house.

Additional Info: Also check DDA Housing Scheme 2022

The eligibility of the applicant for a home loan depends on various factors as mentioned below:

• The income: The repayment capacity of the borrower is the primary factor affecting the home loan application. The applicant should have enough income in order to repay the EMI regularly. The higher the income, the higher the loan amount sanctioned. In case of high net worth individuals, the bank may even offer special interest rates.
• Credit score: Based on your credit behavior each year, the Credit Bureau of India gives you a credit score. This three digit number shows how regular you have been with respect to making repayments towards loans and other credit facilities. It also gives the bank an idea of your income and employment status. The higher the credit score, the more reliable the applicant. Banks require a credit score of at least 700 to sanction a home loan to an applicant. If the applicant has a very high credit score, he or she is also entitled to a lower rate of interest.
• Property value: The bank sanctions a loan based on the value of the property. This is usually between 70 and 90 % of the market value of the property. So, if the value of the property is higher, the loan amount that you will get is also higher. There are other factors such as the reputation of the builder and the location of the property that are considered by the bank as the property is provided as security against the loan.
• Age of the borrower: The younger the borrower, the higher the loan amount sanctioned. With most banks, there is a cap on the maximum age of the applicant at the end of the tenure of the loan. The applicant must not be over 70 years of age at the time of completion of the tenure. In some cases, there is also a minimum age for the applicant to be eligible to avail a loan.