About PNB Housing Finance

PNB Housing Finance Limited, promoted by Punjab National Bank, is a registered housing finance company with NHB, National Housing Bank. Incorporated in the year 1988, PNB Housing Finance has now earned the distinction of being the second-largest HFC in India by deposits. It also has a reputation of having one of the lowest NPAs among the leading housing finance companies in India.

PNB Housing Finance Limited has a pan-India presence, thanks to its parent organisation, Punjab National Bank. The HFC has one of the most exceptional talent serving the organisation. Over 30 years, the company has built up a loan portfolio of around 74,000 crores, an excellent achievement for an HFC. The company focuses on its customers more by subscribing to ethical standards and putting the interests of people first.

About PNB Housing Finance Home Loans

PNB Housing Finance provides an excellent range of housing and non-housing loans for its clients situated throughout the country. True to its reputation, PNB Housing Finance has exclusive products to cater to every home loan requirement. Due to its pan-India presence, the company is one of the significant lending institutions in the Pradhan Mantri Awas Yojana. The fascinating features of PNB Housing Finance home loans are as follows.

  • Caters to all requirements including purchase and construction of house/apartment, repairs and renovations, and purchase of residential plots
  • These loan products are available for resident and non-resident Indians.
  • PNB Housing Finance has an exclusive product to cater to PMAY beneficiaries
  • Pan-India delivery network
  • Robust service delivery model
  • Simplified documentation procedures
  • Easy eligibility norms
  • Enhancements in loan amount possible if there is an escalation in the costs
  • Attractive rates of interest
  • High-quality customer-centric services
  • Variety of repayment options

PNB Housing Finance Home Loans  - At a Glance

Loan Product Ideal for Loan amount Rate of interest Loan tenure

Home Purchase Loans

Purchasing houses/flats

No limit

8.95% to 9.70%

30 years

Home Construction Loan

Constructing homes/apartments

No limit

8.95% to 9.70%

30 years

Home Extension Loan

Extensions to existing homes

No limit

8.95% to 9.70%

30 years

Home Improvement Loan

Repairs, renovations, and improvements to existing homes

No limit

9.10% to 12.50%

30 years

Residential Plot Loans

To purchase a residential plot in urban areas

No limit

9.95% to 10.70%

30 years

Loans for NRIs

Housing needs of NRIs and PIOs

No limit

9.25% to 11.50%

15 years

Unnati Home Loans

Housing needs pf people with low income

25 Lakhs

10.75% to 12%

30 years

PMAY Home Loans

Home loan requirements of first-time homebuyers under PMAY

No limit

8.95% to 9.70%

20 years

PNB Housing Finance - How to Apply

PNB Housing Finance provides the facility of applying for instant home loans. Interested customers can access the PNB Housing website and click on the Apply Now option. The customer has to provide specific details about themselves and the property they wish to acquire. The system seeks information about the expected loan amount and the repayment schedule. On applying, the customer gets the in-principle sanction immediately.

PNB Housing Finance Home Loans - In detail

Home Purchase Loan

Purpose

  • Purchase of new house or flat
  • Purchase of pre-owned homes or apartments
  • Purchase of houses/apartments under construction

Eligibility Criteria

  • Salaried and self-employed resident Indians not more than 70 years of age on the date of maturity of the loan

Rate of Interest

Salaried

Self-employed professionals

Self-employed 

8.95% to 9.45%

8.95% to 9.45%

9.20% to 9.70%

Documents

Standard documents for home loans

Margin

Minimum of 10% of the total cost of the property

Loan Amount

  • No limit on the maximum loan subject to maintaining LTV Ratio
  • Loans <= 30 Lakhs - 90% of the market value
  • Loans > 30 Lakhs and <= 75 Lakhs - 80% of the value of the property
  • Loans > 75 Lakhs - 75% of the cost of the property

Insurance

Comprehensive insurance of the property

Security

Equitable mortgage of the property financed or to be financed by the company

Disbursement

  • After completion of all documentation and legal formalities
  • In the case of loans for houses under construction - Stage-wise disbursement

Repayment

A maximum of 30 years

Home Purchase Loan

Purpose

Construction of a house on the land owned by the borrower

Eligibility Criteria

Resident Indian salaried persons and self-employed individuals and professionals are eligible for this loan

Rate of Interest

Salaried Person

Self-employed professionals

Self-employed

8.95% to 9.45%

8.95% to 9.45%

9.20% to 9.70%

Documents

Regular KYC documents, income statements, and property documents as applicable including the construction agreement and approved plan

Margin

A minimum margin of 10% of the construction estimate

Loan Amount

  • Depends on the requirement and eligibility of the applicant
  • The LTV ratio is between 75% and 90% depending on the loan amount

Insurance

Mandatory to take out comprehensive coverage of the property

Security

Equitable mortgage of the land and superstructure developed over it

Disbursement

In stages as agreed upon in the Construction Agreement

Repayment

Maximum tenure of 30 years including the moratorium period of a maximum of 24 months

Home Extension Loan

Purpose

Extension to your existing houses like constructing additional rooms or floors

Eligibility Criteria

  • Resident Indians
  • Salaried and self-employed persons are eligible
  • The maximum age at the maturity of the loan should be less than 70 years

Rate of Interest

Salaried

Self-employed professionals

Self-employed

8.95% to 9.45%

8.95% to 9.45%

9.20% to 9.70%

Documents

KYC Documents, income records, and property papers along with the estimate for construction

Margin

Minimum of 10% of the total cost of construction estimate

Loan Amount

No limits on the total amount of loan as long as it satisfies the following conditions

  • The eligibility of the applicant
  • The LTV ratio should be in the range of 75% to 90% depending on the estimated value of the property after the development

Insurance

Comprehensive insurance of the property

Security

Equitable mortgage of the property

Disbursement

In stages as listed out in the agreement between the developer and the borrower

Repayment

A maximum of 30 years

Home Improvement Loan

Purpose

Carrying out repairs, renovations, and remodelling of the existing home or flat

Eligibility Criteria

  • Loan product available to all salaried and self-employed resident Indians who are below the age of 70 years
  • The maximum age at the maturity of the home loan is 70 years

Rate of Interest

Salaried

Self-employed professionals

Self-employed

9.10% to 11.25%

9.10% to 11.25%

9.30% to 12.50%

Documents

Standard documents for home loans along with the estimate of repairs and renovations

Margin

Minimum of 10% of the total cost of the repairs as certified by the structural engineer

Loan Amount

  • No maximum limit on the loan amount
  • Subject to eligibility and maintenance of LTV ratio

Insurance

Comprehensive insurance of the property

Security

Equitable mortgage by depositing title deeds of the property

Disbursement

In stages depending on the construction agreement

Repayment

A maximum of 30 years

Plot Loan

Purpose

Purchase of a plot in an urban area intending to construct your dream home at a later stage

Eligibility Criteria

  • Resident individuals including salaries and self-employed persons are eligible
  • The maximum age at the maturity of the loan should not exceed 70 years

Rate of Interest

Salaried individual

Self-employed professionals

Self-employed

9.95% to 10.45%

9.95% to 10.45%

10.20% to 10.70%

Documents

Standard home loan documents along with specific documents concerning title of land along with extract records

Margin

The minimum margin is 10% of the cost of the property including the stamp duty and registration charges

Loan Amount

Loan amount up to 20 Lakhs

90% of the market value of the plot

Loans > 20 Lakhs and <= 75 Lakhs

80% of the cost of the plot

Loans over 75 Lakhs

75% of the value of the property

Insurance

Insurance of land is not possible, but borrowers can insure their loan repayments and any property they construct on the land.

Security

Equitable mortgage of land

Disbursement

After completion of all formalities

Repayment

Maximum of 30 years

NRI Home Loan

Purpose

Meet all the requirements of the non-resident Indian community situated all over the globe

Eligibility Criteria

  • NRIs and PIOs with a minimum service of one year overseas are eligible for home loans
  • The age of the home loan applicant should not cross 70 at the time of the maturity of the loan

Rate of Interest

Salaried Individuals

Self-employed professionals

Self-employed

9.25% to 11%

9.25% to 11%

9.50% to 11.50%

Documents

As applicable to resident home loans along with additional documents specifically for NRIs

Margin

The margin is a minimum of 20% of the total cost of the property

Loan Amount

There is no maximum ceiling on loan. However, the LTV ratio should be as follows

  • Loans up to 75 Lakhs - 80% of the market value
  • Loans above 75 Lakhs  - 75% of the property value

Insurance

Insurance of the property is mandatory

Security

Equitable mortgage by deposit of title deeds

Disbursement

  • After completion of all legal formalities
  • In case of loans under construction - in stages depending on the construction agreement

Repayment

  • A maximum of 10 years for home improvement loans
  • The maximum tenure for a home purchase loan is 15 years
Unnati Home Loans

Purpose

Meet all the housing loan needs of the economically weaker section or low-income group

Eligibility Criteria

  • Any individual earning a fixed minimum income of 10,000 is eligible for this loan
  • Employees of partnership firms, sole proprietorship concerns, and unlisted companies are eligible
  • Any self-employed individual with a professional degree, diploma or a post-graduate degree or ITI qualification is eligible
  • Salaried employees should not be more than 70 years at the time of maturity of the loan. The upper age limit for self-employed persons is 65 years

Rate of Interest

Salaried

Self-employed professionals

Self-employed

10.75%

10.75%

12%

Documents

KYC documents and other documents as per the home loan product

Margin

The minimum margin is 10% of the cost of the property including stamp duty and registration

Loan Amount

  • The maximum loan amount permissible under this product is 25 lakhs
  • LTV ratio for salaried customers 90% of the market value of the property
  • For self-employed individuals 67% of the market value

Insurance

  • Comprehensive insurance of the property is mandatory
  • Loan insurance is also recommended

Security

Equitable mortgage by depositing title deeds of the property

Disbursement

After completion of all formalities

Repayment

A maximum of 30 years

Pradhan Mantri Awas Yojana

Purpose

All housing loan requirements of first-time homebuyers eligible for financing under PMAY

Eligibility Criteria

  • The applicant should be a first-time homebuyer with no member of the family having any houses in their names in India
  • The applicant and the entire family together should fulfil the following income criteria. The total income of the family should not exceed,
    • 3 Lakhs per year for Economically Weaker Section
    • 6 Lakhs per annum for Low-Income Group
    • 12 Lakhs and 18 Lakhs for the Middle-Income Group I and II respectively  

Rate of Interest

Same as that of home loans

Documents

General KYC documents and other papers as required

Interest subsidy

All PMAY beneficiaries are eligible for an upfront interest subsidy depending on the category to which they belong.

Category

EWS/LIG

MIG-I

MIG-II

Loan amount eligible for the subsidy

6 Lakhs

9 Lakhs

12 Lakhs

Rate of support

6.50%

4.00%

3.50%

Amount of allowance

2.67 lakhs

2.35 lakhs

2.30 lakhs

Loan Amount

No maximum limit on the loan amount

Insurance

Comprehensive insurance of the property

Security

Equitable mortgage of the property

Disbursement

In stages depending on the construction agreement

Repayment

A maximum of 20 years

PNB Housing Finance - Documents Required for Home Loan

Know Your Customer Documents

The KYC documents are the same for the salaried employee as well as the self-employed professionals and other individuals. The applicant should provide one report from each category to prove his/her identity, age, and proof of residence.

Age Proof and Proof of Identity

PAN card, Passport, Any other proof of identity from a statutory authority

Proof of Residential address

Passport, driving licence, telephone bill, ration card, election card, or any other certificate from a regulatory authority

Educational Qualifications

The latest degree is necessary for both salaried employees and self-employed professionals

Income Papers

The following documents qualify as proof of income generation for both the salaried and self-employed professionals/individuals.

Salaried Individual Self-employed Professional/Individual

Payslips for three months

Business profile and the certificate of registration of the business

Form 16 for a minimum of the last two years

Three years IT returns along with audited financials

Six months bank statement of the salary account

Statement of bank account for the past 12 months

Apart from these documents, the applicants should provide the following additional documents.

  • Processing fee cheque
  • Photocopy of the title deeds of the property

The property-related documents are as hereunder.

Property related documents for the purchase of property
  • Sale deed if the purchase is already through
  • Otherwise, a copy of the agreement to sell
  • Approved plan of construction and the permission thereon
  • Copies of title deeds for the last 30 years to verify the ownership chain
  • No encumbrance certificate
  • Occupancy certificate if the property is a readymade one
  • NOC from the builder or society for creating an equitable mortgage
  • Copy of the latest tax paid receipt
Property papers in the case of construction of house, repairs, renovations, extensions, and so on
  • All documents mentioned above plus,
  • Construction agreement
  • An estimate of development, repairs, and so on
  • Undertaking that the construction will be in accordance with the approved plan

Non-resident Indians should submit the following papers.

Documents to be submitted by non-resident Indians
  • Proof of identity and age
  • Proof of residence overseas
  • Latest educational degree
  • Copy of the passport or PIO Card along with the Visa stamping
  • Copy of the work permit and the employment contract
  • Payslips - Minimum of three
  • Income statement from employers for two years
  • Bank statement - Minimum of six months
  • Copies of the property documents as listed above depending on the purpose of the loan

PNB Housing Finance - Non-Housing Loans

Apart from the various housing loan products, PNB Housing Finance offers the following non-housing loans.

Loan Product Ideal for Loan amount Rate of interest Loan tenure

Commercial Property Loan

Purchase/construct shops and offices

Maximum LTV ratio is 70%

10.25% to 10.75%

15 years

Loan against Property

Business expansion and personal requirements

Maximum LTV is 60%

10.25% to 11.75%

20 years

Lease Rental Discounting

Loan against rent receivables

Maximum 80% of future rent receivables

10.25% to 10.75%

Ten years

Loan for Real Estate Developers

Develop real estate projects

As per requirement

At PNBs discretion

NA

PNB Housing Finance - Frequently Asked Questions

What are the factors that affect the loan amount sanctioned by PNB Housing Finance?

PNB Housing Finance does not stipulate any maximum loan amount ceiling for almost all its home loans. The loan amount depends on various factors.

  • The market value of the property
  • The income and the repaying capacity of the borrower

PNB Housing Finance has stipulated LTV ratios for each of its products. It finances the home loans accordingly.

What factors affect the individual rates of interest on the PNB Housing Finance Home Loans?

The housing loan rate of interest in PNB Housing Finance links with the floating rate benchmark, PNBHFR. The factors that affect the individual interest rates are,

  • The occupation of the borrower
  • The purpose of the loan
  • The credit rating of the borrower

Why do salaried borrowers get better rates of interest than self-employed individuals?

Salaried persons have definite sources of income, whereas it is not the case with self-employed people. This inconsistency in revenue is the reason why salaried persons get a better rate.

Should I submit the originals of all documents to PNB Housing Finance when applying for a home loan?

No, applicants should submit self-attested copies of all documents to PNB Housing Finance. The company can call for the originals if it feels the need to confirm or verify the same.

Should all co-applicants submit their KYC and income papers?

As far as KYC papers are concerned, every applicant or guarantor, if applicable, should submit his/her KYC documents. If the co-applicants do not earn any income, they need not provide any papers to prove the same.

Who can be a co-applicant to the home loan?

Co-owners to the property should compulsorily be co-applicants to the loan. Besides, the spouse, parents, or children of the applicant can join as co-applicants to enhance the loan eligibility.

If I do not have proper documents to prove my income, will I be able to get a PNB Housing Finance home loan?

PNB Housing Finance has an exclusive loan product, Unnati Housing Loans that specifically cater to such borrowers.

When should I submit the original property papers to PNB Housing Finance?

Borrowers should deposit their original title deeds with PNB Housing Finance at the time of creating the equitable mortgage.

Should I register the equitable mortgage?

It depends on the State Government laws. At most places in India, you have to register the memorandum of title deeds with the Sub Registrar Office.

Is the PNB Housing Finance home loan different from the home loans offered by Punjab National Bank?

Yes, Punjab National Bank has its home loan products that are different from what PNB Housing Finance offers.

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