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 |
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Eligibility Criteria |
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Rate of Interest |
Salaried |
Self-employed professionals |
Self-employed |
8.95% to 9.45% |
8.95% to 9.45% |
9.20% to 9.70% |
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Documents |
Standard documents for home loans |
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Margin |
Minimum of 10% of the total cost of the property |
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Loan Amount |
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Insurance |
Comprehensive insurance of the property |
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Security |
Equitable mortgage of the property financed or to be financed by the company |
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Disbursement |
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Repayment |
A maximum of 30 years |
Home Purchase Loan | |||
Purpose |
Construction of a house on the land owned by the borrower |
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Eligibility Criteria |
Resident Indian salaried persons and self-employed individuals and professionals are eligible for this loan |
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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% |
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Documents |
Regular KYC documents, income statements, and property documents as applicable including the construction agreement and approved plan |
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Margin |
A minimum margin of 10% of the construction estimate |
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Loan Amount |
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Insurance |
Mandatory to take out comprehensive coverage of the property |
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Security |
Equitable mortgage of the land and superstructure developed over it |
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Disbursement |
In stages as agreed upon in the Construction Agreement |
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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 |
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Eligibility Criteria |
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Rate of Interest |
Salaried |
Self-employed professionals |
Self-employed |
8.95% to 9.45% |
8.95% to 9.45% |
9.20% to 9.70% |
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Documents |
KYC Documents, income records, and property papers along with the estimate for construction |
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Margin |
Minimum of 10% of the total cost of construction estimate |
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Loan Amount |
No limits on the total amount of loan as long as it satisfies the following conditions
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Insurance |
Comprehensive insurance of the property |
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Security |
Equitable mortgage of the property |
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Disbursement |
In stages as listed out in the agreement between the developer and the borrower |
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Repayment |
A maximum of 30 years |
Home Improvement Loan | |||
Purpose |
Carrying out repairs, renovations, and remodelling of the existing home or flat |
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Eligibility Criteria |
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Rate of Interest |
Salaried |
Self-employed professionals |
Self-employed |
9.10% to 11.25% |
9.10% to 11.25% |
9.30% to 12.50% |
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Documents |
Standard documents for home loans along with the estimate of repairs and renovations |
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Margin |
Minimum of 10% of the total cost of the repairs as certified by the structural engineer |
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Loan Amount |
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Insurance |
Comprehensive insurance of the property |
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Security |
Equitable mortgage by depositing title deeds of the property |
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Disbursement |
In stages depending on the construction agreement |
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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 |
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Eligibility Criteria |
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Rate of Interest |
Salaried individual |
Self-employed professionals |
Self-employed |
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9.95% to 10.45% |
9.95% to 10.45% |
10.20% to 10.70% |
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Documents |
Standard home loan documents along with specific documents concerning title of land along with extract records |
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Margin |
The minimum margin is 10% of the cost of the property including the stamp duty and registration charges |
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Loan Amount |
Loan amount up to 20 Lakhs |
90% of the market value of the plot |
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Loans > 20 Lakhs and <= 75 Lakhs |
80% of the cost of the plot |
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Loans over 75 Lakhs |
75% of the value of the property |
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Insurance |
Insurance of land is not possible, but borrowers can insure their loan repayments and any property they construct on the land. |
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Security |
Equitable mortgage of land |
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Disbursement |
After completion of all formalities |
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Repayment |
Maximum of 30 years |
NRI Home Loan | |||
Purpose |
Meet all the requirements of the non-resident Indian community situated all over the globe |
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Eligibility Criteria |
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Rate of Interest |
Salaried Individuals |
Self-employed professionals |
Self-employed |
9.25% to 11% |
9.25% to 11% |
9.50% to 11.50% |
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Documents |
As applicable to resident home loans along with additional documents specifically for NRIs |
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Margin |
The margin is a minimum of 20% of the total cost of the property |
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Loan Amount |
There is no maximum ceiling on loan. However, the LTV ratio should be as follows
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Insurance |
Insurance of the property is mandatory |
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Security |
Equitable mortgage by deposit of title deeds |
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Disbursement |
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Repayment |
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Unnati Home Loans | |||
Purpose |
Meet all the housing loan needs of the economically weaker section or low-income group |
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Eligibility Criteria |
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Rate of Interest |
Salaried |
Self-employed professionals |
Self-employed |
10.75% |
10.75% |
12% |
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Documents |
KYC documents and other documents as per the home loan product |
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Margin |
The minimum margin is 10% of the cost of the property including stamp duty and registration |
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Loan Amount |
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Insurance |
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Security |
Equitable mortgage by depositing title deeds of the property |
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Disbursement |
After completion of all formalities |
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Repayment |
A maximum of 30 years |
Pradhan Mantri Awas Yojana | |||||||||||||||||
Purpose |
All housing loan requirements of first-time homebuyers eligible for financing under PMAY |
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Eligibility Criteria |
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Rate of Interest |
Same as that of home loans |
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Documents |
General KYC documents and other papers as required |
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Interest subsidy |
All PMAY beneficiaries are eligible for an upfront interest subsidy depending on the category to which they belong.
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Loan Amount |
No maximum limit on the loan amount |
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Insurance |
Comprehensive insurance of the property |
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Security |
Equitable mortgage of the property |
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Disbursement |
In stages depending on the construction agreement |
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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 |
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Property papers in the case of construction of house, repairs, renovations, extensions, and so on |
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Non-resident Indians should submit the following papers.
Documents to be submitted by non-resident Indians |
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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.