PNB Housing Finance Ltd. offers a range of home loans best suited for resident Indians and older borrowers. Though PNB home loans come with higher interest rates than the average rate range in India, borrowers with a high CIBIL credit score can benefit from lower rates. NRIs can avail PNB home loans, too, but will find shorter loan tenures and less home loan eligibility than resident Indians.
|Summary of PNB HFL Home Loans|
|30 year tenures for both self-employed and salaried individuals|
|Higher interest rates compared to the market|
|NRIs will find higher interest rates and shorter loan tenures|
Table of Contents
What Makes PNB Home Loans Stand Out to Borrowers
For a non-bank housing finance company, PNB offers good home loan options with long maximum loan tenures. Unlike other popular lenders like LIC and DHFL, PNB provides borrowers with a 30 year maximum tenure, regardless of job position. So while PNB home loan interest rates are higher than the market rate, the lender offers ample time for loan repayment. This leads to smaller equated monthly instalments (EMIs) and less home loan interest paid over time.
Below, you can find different PNB Housing loans and their maximum loan tenures, as well as the percentage of your property value that can be covered by PNB Housing Finance, otherwise known as the loan-to-value ratio (LTV).
PNB Housing Loans, Maximum Loan Tenure and LTV Range
|Type||Max Tenure||LTV Range|
|Home Purchase||30 years||75% - 90%|
|Home Construction||30 years||75% - 90%|
|Home Extension||30 years||75% - 90%|
|Home Improvement||30 years||75% - 90%|
|Residential Plot||30 years||75% - 90%|
|NRI Home Loans||75% - 80%|
|Unnati Home Loans|
|PMAY Option||20 years|
NRIs do not have access to the same PNB home loan benefits as resident Indians. For instance, NRIs can avail a home loan with a maximum tenure of only 15 years in the case of home purchase and construction, and a loan term of 10 years for home improvement. Further, NRI home loans will only cover a maximum 80% of property value, while resident Indians can avail a home loan with up to 90% coverage.
PNB Home Loan Interest Rates
PNB HFL charges relatively high interest rates on their home loans. Below, we've compared the interest rate range you can expect from PNB housing loans to the average home loan interest rate in India. You can see interest rate ranges for both salaried individuals and self-employed non-professionals.
PNB Housing Loan Interest Rate Range
|Type||Salaried and Professionals||Non-Professionals|
|Home Purchase||7.90% - 9.50%||7.95% - 9.70%|
|Home Improvement||8.60% - 9.75%||8.85% - 9.95%|
|Residential Plot Loan||8.90% - 10.50%||8.95% - 10.70%|
|NRI Home Loans||9.25% - 11.00%||9.50% - 11.50%|
|Unnati Home Loans||10.75%||12.00%|
|PMAY Option||2.63% after interest subsidy.|
|Average Home Loan Interest Rate in India||7.54% to 8.41%||7.60% to 8.53%|
Based on our research of over 30 banks and home loan lenders, PNB housing loan interest rates are higher than the market average. Even when compared to other non-bank housing finance companies, who generally have higher interest rates than bank lenders, PNB Housing's interest rates are on the higher side.
It's important to note that a PMAY home loan option is good for eligible borrowers. PNB Housing calculated the effective interest rate at 2.63% p.a., which most banks do not do on their website.
Read more: 2020 Home Loan Interest Rates of All Banks
PNB Home Loan Eligibility
PNB housing loans benefit older borrowers with a maximum age of 70 years old. While the minimum age is not available online for most PNB home loan options, a PMAY borrower must be at least 18 years old to avail a housing loan.
If you are a low income earner, you will find that PNB housing loan options ask for a high minimum income requirement. For instance, you (or you and your co-applicant) must earn at least Rs. 18,000 in total income if you wish to be eligible for a Unnati home loan.
Like many home loan lenders, PNB Housing determines your home loan eligibility based on your CIBIL credit score. Click below to view different home loan interest rates based on your credit score for various PNB housing loan schemes.
PNB HFL Home Purchase Loans have interest rates starting at 7.90%.
|Credit Score less than zero||9.00% – 9.50%||9.20% – 9.70%|
|0 to 650||9.00% – 9.50%||9.20% – 9.70%|
|650 to 700||8.80% – 9.30%||8.95% – 9.45%|
|700 to 750||8.55% – 9.05%||8.80% – 9.30%|
|750 to 800||8.25% – 8.75%||8.65% – 9.15%|
|800+||7.90% – 8.40%||7.95% – 8.45%|
PNB HFL Residential Plot Loans have interest rates starting at 8.90%.
|Credit Score less than zero||10.00% – 10.50%||10.20% – 10.70%|
|0 to 650||10.00% – 10.50%||10.20% – 10.70%|
|650 to 700||9.80% – 10.30%||9.95% – 10.45%|
|700 to 750||9.55% – 10.05%||9.80% – 10.30%|
|750 to 800||9.25% – 9.75%||9.65% – 10.15%|
|800+||8.90% – 9.40%||8.95% – 9.45%|
PNB HFL Home Improvement Loans have interest rates starting at 8.60%.
|Credit Score less than zero||9.25% – 9.75%||9.45% – 9.95%|
|0 to 650||9.25% – 9.75%||9.45% – 9.95%|
|650 to 700||8.95% – 9.45%||9.15% – 9.65%|
|700 to 750||8.85% – 9.35%||9.05% – 9.55%|
|750 to 800||8.75% – 9.25%||8.95% – 9.45%|
|800+||8.60% – 9.10%||8.85% – 9.35%|
If you have a CIBIL credit score of 800 or more, you can avail a home loan with the lowest interest rates. Borrowers with a low credit score or CIBIL score below 650 will avail the highest PNB home loan interest rates.
PNB Home Loan Processing Fee and Other Charges
For home loan applications, PNB charges a 1.00% processing fee of the total loan amount. This is standard compared to other home loan lenders, but it is not the lowest you can find in the market.
Check below to see processing fees and charges you may come across when availing a PNB housing loan.
|Processing Fee||1.00% of loan amount + GST, minimum Rs. 10,000.|
|Prepayment Penalty on Floating Rates (for individual borrowers)||Free|
|Prepayment Penalty on Floating Rates (for non individual borrowers)||2.00% of principal prepaid + GST|
|Prepayment Penalty on Fixed Rates||3.00% of principal prepaid + GST|
|Conversion Charges (Fixed to Floating)||2.00% of principal outstanding + GST|
|Conversion Charges (Floating to Fixed)||0.50% of principal outstanding + GST|
|Overdue Charge||2.00% of overdue payment p.m. + GST|
|Change of Repayment Mode||Rs. 500 + Tax|
|EMI Payment Fee on Account of Non-Submission of PDC/ NACH Mandate Form||Rs. 300 + Tax|
|Loan Preclosure Statement or Photocopy of Property Documents||Rs. 500 + Tax|
|Cheque/ NACH Mandate Form Return||Rs. 500 + Tax|
|CERSAI Fees||Rs. 100 + Tax|
If you seek to pay down your home loan in advance, you may have to pay a prepayment penalty fee. If you are an individual borrower, PNB Housing will not charge you a prepayment penalty fee as long as your home loan has a floating interest rate. If you aren't an individual borrower, meaning you applied with a co-applicant, you will be charged a 2.00% prepayment penalty. This is considered high, as most banks do not charge a prepayment fee on home loans with floating interest rates.
For home loans with fixed rates, PNB housing will charge a 3.00% prepayment penalty, which is also higher than what most banks and home loan lenders charge.
How to Apply for PNB Home Loan: Application Process
You have the option of applying in person or online for a PNB housing loan. If you choose to start your home loan application online, you will have to enter your contact information so that a PNB Housing customer service official can contact you. PNB Housing claims you can avail a home loan within 3 hours if you choose the instant application option found on their website.
Below, you will find the different required documents you will need for your home loan sanction and approval.
Required Documents for All Borrowers
|Filled Application Form with Photograph|
|Age Proof (PAN Card, Passport, any other Certificate from Statutory Authority)|
|Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, any other Certificate from Statutory Authority)|
|Education Qualifications: Latest Degree (for Salaried and Self-Employed Professionals)|
|Processing Fee Cheque in favour of PNB Housing Finance Ltd.|
|Photocopy of Title Documents of the Property, Approved Plan.|
Additional Required Documents
|Salaried Individuals||Self-Employed Individuals|
|Latest Salary-slips for 3 months||Certificate & Proof of business existence along with Business Profile|
|Form 16 for last 2 years||Last 3 years Income Tax returns (self and business) with CA-Certified Profit & Loss Account & Balance Sheets|
|Last 6 months Bank Statements (salary account)||Last 12 months Bank Account Statements (self & business)|
Your home loan disbursement will be made after you've submitted your Know Your Customer (KYC) documents, proof of income documents, and property documentation.
If you seek to avail a home purchase loan, your full loan amount will be paid to the seller at the time of transfer. For home construction loans, your loan amount will be disbursed in stages based on the progress of your home construction.