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PNB Housing Finance Limited

Punjab National Bank Housing Finance Ltd or PNB HFL is a Non Banking Financial Company ... that provides loans to individuals and corporations for the purchase of property. It is promoted by one of the largest Public Sector banks in the country - Punjab National Bank. Read More +

The main thrust of PNB HFL in the housing finance market is towards affordable housing, that is, property that has a maximum value of up to Rs 30 lakhs. If you’re looking at availing a loan for that amount - PNB HFL is worth reaching out to.

Interest Rates

Loan Amount Interest Rate
UP to 30 Lakhs 9.1% (women) - 9.1% (others)
30 Lakhs to 75 Lakhs 9.1% (women) - 9.1% (others)
75 Lakhs and above 9.2% (women) - 9.2% (others)
Loan Amount Interest Rate
UP to 30 Lakhs 9.3% (women) - 9.3% (others)
30 Lakhs to 75 Lakhs 9.3% (women) - 9.3% (others)
75 Lakhs and above 9.5% (women) - 9.5% (others)

Product offerings

Home Purchase Loan

It is a loan offered by PNB Housing Finance Limited for either the purchase, construction and extension of homes. Anybody who matches the eligibility criteria can avail this product. As such, there’s no advantage for a salaried person versus a professional etc.

Why should you take it?

PNB Housing Finance Limited offers the choice between a floating and fixed interest rate based on your preference. They also have transparent application process which requires less documentation when compared to SBI, for instance.

What should you consider?

The problem with PNB Home Loan is that the documentation process is slow. Additionally, they are not particularly responsive to MCLR rate changes, unlike home loans offered by Punjab National Bank directly.


Home Construction Loan

This is a loan for self construction of a home. Please bear in mind that this is only for the construction of a home for anyone who already owns land. Anybody who fulfills the eligibility criteria can avail the loan.

Why should you take it?

A transparent application process and a competitive rate of interest are some of the attractive factors of this loan. There are also provisions that allow you to increase the quantum of the loan in case in increase in costs.

What should you consider?

The application process is transparent, however, the documentation process is slow. As mentioned earlier, PNB HFL are not particularly responsive to MCLR rate changes.


Home Extension Loan

This is a product for anybody who is looking to add more space to their house - adding a new room for your kids, or constructing a study for work etc. Anybody who fulfills the eligibility criteria can avail the loan.

Why should you take it?

The advantages of this loan are the same as any of the other loans offered by PNB HFL - a transparent application process, and competitive rates of interest. Another advantage is door step service.

What should you consider?

Primarily the same things to keep in mind with any of the other loans offered by PNB HFL - the slow processing times and the unresponsiveness to MCLR changes.


Home Improvement Loan

It is a loan offered for any home improvement work to your property - for instance - renovation of your house, painting or plumbing work, water-proofing and any kind of repairs.Anybody who fulfills the eligibility criteria can avail the loan.

Why should you take it?

The same reasons that apply for the other loans apply for this - door step service, a transparent application process and competitive rates of interest.

What should you consider?

Similar to the other loans - slow processing times and unresponsiveness to MCLR changes.


Residential Plot Loan

It is a loan offered for the purchase of a residential plot in an urban area. Anybody who fulfills the eligibility criteria and wants to purchase a plot in an urban area.

Why should you take it?

Similar to the advantages that the other home loans offer - a transparent process, low rates of interest and door step service.

What should you consider?

One thing to keep in mind is that this is only for purchase of plots in urban areas. The other things to keep in mind are the same as the other loans offered by PNB HFL - slow processing times and unresponsiveness to MCLR changes.

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Home Loan for NRIs

It is a loan for Non Resident Indians (NRIs) or Persons of Indian Origin (PIOs) that can be used for purchase of property, construction of property, extension or renovation. It is for any NRI or PIO who fulfills the eligibility criteria.

Why should you take it?

The loans are easy to apply for, the process is transparent and the rates of interest are favourable. Disbursement of the loan can be done according to the requirements of the builder/society.

What should you consider?

The loan is only available for a person having NRI or PIO status who has already spent a year abroad.

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Unnati Home Loan

The Unnati Home Loan is a product offered to anyone who is earning atleast Rs 10,000 and above. The loan can be for upto an amount of Rs 25 lakhs. It is available for salaried and self employed people who earn more than Rs 10,000 a month.

Why should you take it?

The loan can be for up to 90% of the property value. You can apply for the loan on the combined income of the applicant and the co-applicant.

What should you consider?

The rate of interest for this loan starts at 10.50%, which is a little higher compared to the other loans offered by PNB HFL.



The interest rate options for you depends on your loan amount

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Eligibility

Income

Income is the primary criteria based on which your eligibility is determined. Naturally, income primarily refers to disposable income. So, most banks and NBFCs deduct any sort of fixed monthly commitments (EMIs on car loans or tax payments, for example) from their calculations.

Your loan eligibility is calculated by the EMI/NMI ratio: NMI basically refers to Net Monthly Income (income after deducting monthly commitments). Lenders typically have a fixed EMI/NMI ratio for different income slabs based on which your eligibility is calculated.

Credit History and CIBIL Score

Credit History and CIBIL scores are important criterion when it comes to determining elibility. SBI using certain proprietary tools, look for specific patterns in your credit history. The last twelve months of your credit history are more important than the preceding time period.

Credit scores or CIBIL scores are determined by how well you manage your loan or credit obligations. If you’ve never missed a loan payment and keep on top of credit card bills, your credit score will be higher. Usually, credit scores range between 300 and 900; a credit score of above 700 is required for a home loan.

Rather confusingly, if you’ve never taken a loan or a credit card before, your credit score is likely to be low. Why is this? It’s because lenders have no idea about your ability to repay loans. Build a credit score by responsible management of credit before applying for a home loan.

Property

Banks look at the property you’re investing in carefully when approving a home loan. Among the things that SBI looks at when investigating the property are:

  1. Whether the title to the property is clear and whether there are any other claimants or if there is any dispute regarding the property.
  2. Whether all the necessary regulatory approvals have been taken. Absence of approvals is looked at as suppression of property records.
  3. Whether the building is constructed as per approved building norms. If the property flouts certain guidelines, there is a tendency to devalue that property when compared to other properties in the same area.

Documents Required


kyc proof
KYC Documents
  1. Application with photograph
  2. ID Proof
  3. Residence Proof
income proof
Income Proof
  1. Residence Proof
  2. Latest salary slip(for salaried applicants)
  3. Form 16(for salaried applicants)
  4. IT returns for the last 2 years along with computation of income certified by CA(for non salaried applicants)
  5. 6 months bank statement
property documents
Property Documents
  1. Agreement of Sale
  2. Registration and stamp duty receipt
  3. Index - II
  4. Noc from builder
  5. Own Contribution Receipt(OCR)

How to Apply

Once you’ve shortlisted PNB Housing Finance Limited as your home loan provider, ensure you have all your documents in place. Make sure you confirm the eligibility criteria for that specific loan and source the down payment. You can apply for a loan either jointly or individually.



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4.9 stars
Abhijeet Deshpande
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Home Loan Top Up

A top up loan is for anyone who wants to “top up” their home loan with additional funding to cover for unexpected cost increases. A top up loan from PNB Housing Finance Limited is based on the balance principal outstanding. So for instance, if your original home loan was worth Rs 10,00,000 and you have Rs 8,00,000 outstanding, you are eligible for a top up loan worth Rs 2,00,000. Please keep in mind that you’ll need to have completed atleast six months worth of EMI payments to be eligible for a top up loan. Also, the interest rate is 1-3% higher than a regular home loan but is significantly less when compared to a personal loan.

Balance Transfer to PNB Housing Finance Limited

The general process to transfer your home loan takes a fair amount of time, but is worth it if you find that PNB Housing Finance Limited offers you a lower rate of interest. PNB Housing Finance Limited is slightly less stringent with documentation when compared to a state run institute.
  1. Get a foreclosure letter from your current home loan provider, along with payment history and list of your documents.
  2. Apply to PNB Housing Finance Limited with the list of documents.
  3. The bank typically does a background check on credit history, ownership and more before they provide approval.
  4. Lastly, you complete the documentation stage with your existing bank and PNB Housing Finance Limited, and you are good to go.
Typically, every bank that you're transferring out of will have foreclosure charges which is usually around Rs 500+GST. Please confirm with your bank.