Owning a house is a well thought plan and a life-long dream for any Indian. Often the absence of money in ready cash, upfront in payment prevents people from getting their dream house. With the savings from a fixed salary, it will take a lifetime for an individual to manage the whole cost of buying a house. Well, this is not the situation anymore. Availing Housing Loans at attractive rates and flexible terms is now accessible to the Indian populace through the Punjab National Bank (PNB).
The PNB with over 80,000,000 customers is already the favourite destination for Home Loan seekers. PNB is all set to help you with an offer of a vast range of Home Loan offers.
Why PNB Housing Loan?
Thanks to all well-paying jobs and Equated Monthly Instalments (EMI), the Indian youngsters nowadays possess more capability to handle the responsibility of repaying a loan than ever before. Among many other banks and Non Banking Financial Companies (NBFCs), PNB Housing Loan are preferred due to following features:
- Available at more than 6,900 branches of PNB located all over India.
- Many variants of Home Loans such as Home Purchase Loans, Home Construction Loans, Home Extension Loans, Plot Loans and Home Improvement Loans are available to fund all your housing related needs.
- Flexible repayment period up to a maximum of 30 years or up to 70 years of age, whichever comes first.
- Competitive interest rates starting at 9%
Who Can Apply for PNB Housing Finance Home Loan?
You should not be above 70 years of age at the time of loan maturity to get approval for your Home Loan application. Among others, your income, qualification, credit score and occupation is also taken into account by the bank. Further, the value of the property which is being financed is also a pivotal point to your eligibility. The income of your co-applicant is clubbed with yours to calculate the amount of loan you are eligible for.
How to Apply for PNB Housing Loan?
You can apply for PNB Housing Loan online. The following documents are required for a successful loan application:
- Completely filled application form with a recent passport size photograph.
- Proof of age – Passport/PAN Card/any other Certificate provided by Statutory Authority.
- Proof of residence – Driving License/Passpor/Telephone Bill/Ration Card/Election Card/any other Certificate provided by Statutory Authority.
- Education qualifications – Latest Degree
- Income proof for salaried individuals – Last 3 months’ salary slips, last 2 years’ Form 16, bank statements of last 6 months.
- Income proof for self-employed individuals – Certificate and proof of business existence with business profile, ITR of last 3 years (of self as well as business) with balance sheet and profit & loss account (audited/certified by Chartered Accountant), bank statements of last 12 months.
- A cheque written in favour of the ‘PNB Housing Finance Ltd.’ for processing fee.
- Photocopy of the Approved Plan and Title Documents of the Property.
After the assessment of your application, property valuation and title checks are conducted by the bank. If everything is good, your application will be approved.
How Much Loan Amount Can I Get?
The loan amount you are qualified for is determined by the bank based on your eligibility criteria along with the market value of the property being financed. Bank demands a minimum contribution of 10% of the total cost from the borrower. The Maximum amount sanctioned as the loan is restricted as follows:
- For loan up to Rs. 30 Lakhs – 90% of the market value
- For loan from Rs. 30 Lakhs to Rs. 75 Lakhs – 80% of the market value
- For loan above Rs. 75 Lakhs – 75% of the market value
The Loan Disbursement Process
The disbursement process commences after all legal documentation is completed. For the purchase of a house on resale, the loan amount is paid as a lump sum to the seller after you have paid your contribution. The amount will be disbursed in stages for houses under construction based on the development of the construction process.
Loan Repayment Tenure
The repayment period can be up to a maximum of 30 years. Tenure is primarily based on your age, loan amount, and income.
The repayment can be made in equated monthly instalments (EMIs) with post-dated cheques or Electronic Clearing System (ECS) facility. The EMIs can be calculated using EMI calculator available online. The EMI amount varies according to your total loan amount, interest rate and loan tenure.
For post-dated cheque facility, you will have to submit signed cheque leaves in advance to PNB so that the bank can deposit them at the given payment dates. In the case of ECS, you are required to give standing instructions to your bank to allow PNB to auto-debit the EMIs every month. In both cases, you have to maintain sufficient funds in your account to allow uninterrupted repayment. Bank will charge an amount as a fine for every instance of cheque bounce.
The loan can be foreclosed with a 1% (for fixed interest rate Home Loans). If you had chosen the floating interest rate scheme, you don’t need to pay any prepayment charges.
With these attractive features, we can say that PNB Housing Loan is one of the best Home Loan options available in the market today.