PNB Loan Against Property

Punjab National Bank offers various loan schemes and other financial products to its customers. With an extensive presence across the country, PNB’s property loan provides a host of unique features, which are entirely customized to suit the needs of its customers.

PNB Loan Against Property Interest Rates and Processing Fees

Loan Amount	Rate
Upto ? 25 Lakh	10.20%
? 25 Lakh - ? 75,00,000	10.20%
? 75 Lakh - ? 1,50,00,000	10.20%
Above ? 1.50 Cr	10.20%

Features

• The loan against property from PNB can be used for any personal or business needs.

• If the loan against property is borrowed for personal usage, the amount of credit is granted between the range of ?1 lakh-5 lakhs.

• For business use, a loan amount ranging from ?10 lakh-2 crores lakh can be approved.

• The amount of a PNB property loan is granted based on a few parameters:

  • Value of property: Only 75% of the value of a property is provided as loan.

  • If the loan from PNB is borrowed in the form of a term loan, a maximum of three times the gross annual income/profit is issued by the bank.

  • If the loan is taken as an overdraft, a maximum of four times the gross annual income/profit is issued.

  • If any individual, whether salaried or self-employed, takes a loan, his/her net income should be at least two times the EMI.

  • If any business enterprise avails a loan against property, the net income should be 1.5 times of the EMI in case of a term loan.

• For a term loan, the processing fee levied by the bank is 0.90% of the loan amount sanctioned, which can be up to ?45,000.

• For an overdraft facility, the processing charge is ?225/lakh.

• There are no prepayment charges applicable for PNB loan against property.

Eligibility Criteria for Salaried and Self-Employed Individuals

For individuals to be eligible for a loan against property from Punjab National Bank, they have to satisfy the following criteria:

• Loans for personal needs are provided to individuals who are employees of any Central or State Government body, school, college, PSU, or of any other reputed company. Non-employed income tax payers can also avail this loan. However, the age of the borrower should not exceed 60 years.

• Business enterprises seeking a loan against property should be existing customers of PNB with a clear track record in the past three years, with cash profits of the previous three years and net profit in preceding year constituting the past track record.

• Salaried employees should have had a minimum in-hand salary of ?10,000 in the last three years.

• Business enterprises availing a PNB loan against property should have a net annual income/profit of ? 1.2 lakh or above.

Documents Required

• Any of the following address and age proof documents (of the applicant and guarantor):

  • Voter Id card

  • Passport

  • SSC certificate

  • PAN card

  • Ration card

  • Driving license

• Net worth statements certified by a CA containing details of the assets and liabilities of the borrower and  guarantor (if the amount of loan sought is greater than or equal to ? 25 lakh)

• Two colored passport size photographs of the loan applicant, co-applicant, and the guarantor.

• Property title and other linked documents, such as sale deed

• Updated encumbrance certificate for the last thirteen years

• The latest property tax payment receipts

• The legal opinion from a Corporation-Bank-approved advocate on the title to a property

• Copies of the approved plan and building license

• Property valuation report from an approved civil engineer

• A copy of the Occupancy Certificate (OC) issued by an authorized local body

Income Proof and Other Documents

For salaried employees:

• Salary slip for the last three months (showing deductions for other loans, if any)

• Income tax assessment order or income tax returns for the past three years.

For self-employed individuals:

• Copies of the balance sheet and profit & loss account for the last three years (certified by a chartered accountant)

• Income tax assessment order or income tax returns for the past three years

• Bank account statement from the current bank for the previous six months

Punjab National Bank EMI Calculator

Punjab National Bank EMI calculator helps in calculating the EMI on a prospective property loan, which would be required to be paid each month. For calculating the EMI, one has to provide the required principal amount, tenure (in years) and the interest rate in the calculator. The calculator shows the approximate monthly EMI to help the applicants in deciding the amount of loan that they can afford to avail.

How to Apply for PNB Loan Against Property

The Punjab National Bank property loan can be applied only by visiting a branch of the bank, obtaining and filling in the required application form. Online application is yet to be made available for PNB loan against property.

FAQs

Q. What is the quantum of credit to be financed by PNB?

The quantum of a standard PNB loan against property is in the range of ? 1-5 lakh for personal needs and ?10 lakh-2 crores for business needs. The quantum of loan also depends on the repayment capacity of the applicant and the value of the property.

Q. What is the fees levied on a PNB loan against property?

The bank does not charge any service-related fees on the loan. However, the bank may charge a penalty for delayed repayment of loans, which would be 2% above the normal rate of interest.