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State-run Punjab National Bank (PNB) has cut its home loan interest rate by five basis points to bring it to 6.5%. This is the second time in one and a half month that the public sector bank has decided to lower its repo-rate linked lending rates at a time when all leading banks in the country are vying with one another to offer the best home loans to home buyers during the ongoing festive season.
The new rates at PNB are applicable on home loans issued on and after November 4, 2021.
On September 17, 2021, the state lender had announced a reduction of 25 basis points in its repo rate linked home loans, bringing the home loan interest to 6.55%. With the recent cut, PNB has now joined the league of banks like Kotak Mahindra Bank and Bank of Baroda that are offering home loans at 6.5% annual interest. The lowest home loan interest is, however, being charged by another public lender, Union Bank of India. Union Bank is currently offering home loans at 6.40% interest.
Aside from visiting a PNB branch in person, home loan borrowers can give a missed call to the lender to apply for home loans. “Give a missed call at 1800-180-5555, and let our customer service providers reach out to you with some of the best deals,” PBN said in a tweet.
State-run Punjab National Bank (PNB) has joined the bandwagon of financial institutions that have reduced home loan interest rates recently, in order to cash in on the ongoing festive season.
Under its Festive Bonanza Offer, announced on September 17, 2021, PNB will now charge 6.55% interest on its home loans linked to the RBI monitored repo rate. The current rate comes into effect after a reduction of 25 basis points in the repo rate-linked home loans.
PBN will also charge 6.55 annual interest on all its home loans above Rs 50 lakhs, irrespective of any upper limit. The rates, however, will be linked to a borrower’s credit score – the best rate will be available to borrowers with credit scores of 750 and above. This means, a borrower with a poor credit score will have to pay a premium over and above the best rate.
“Home loan ownership will become more affordable to the public in view of this offer of a full waiver of service charges and a low interest rate starting from 6.55%,” said PNB, in a press release.
The reduction, which will also be applicable on home loan balance transfers, makes Punjab National Bank offering the lowest home loan interest among public banks. Overall, Kotak Mahindra Bank is offering the lowest rate of interest on home loans at 6.50% annually. PNB is also offering a complete waiver of home loan processing fee under its festive bonanza offer.
PNB home loan types
Note here that Punjab National Bank offers home loans for various purposes, including:
- For construction of houses or flats.
- To build houses or flats.
- For purchase of under-construction houses or flats from housing boards, development authorities, cooperative societies and approved private builders.
- For carrying out additions to property.
- For repairs/ renovation / alterations/ furnishing of the property.
- For meeting cost escalation, in case of under-construction flats, for existing housing loan borrowers.
- For purchase of plot or land for house construction.
PNB loan eligibility
PNB offers home loans to various categories of borrowers including salaried employees, professionals, self-employed people, businessmen and farmers.
PNB home loan amount
A borrower can get up to 80% of the property cost as home loan from PNB. The remaining 20% money will have to be arranged by the buyer from personal sources.
PNB home loan processing fee
While PNB charges 0.35% of the loan amount, with the minimum amount capped at Rs 2,500 and the maximum amount at Rs 15,000, as its home loan processing fee, it is offering a complete waiver on processing fee and documentation charges from September 1, 2021, to December 31, 2021. However, borrowers will have to pay Rs 250 along with GST, as verification fee at PNB.
PNB home loan for self-employed and professionals
Like most banks, PNB imposed an occupation-linked premium on its home loans. This means, while salaried individuals are offered the best rate of interest, other types of borrowers have to pay additional interest, over and above the lowest home loan interest rate. This is primarily because lending high-intensity amounts to self-employed and professionals is considered risky.
Documents for PNB home loan
|Documents for salaried borrowers||Documents for self-employed borrowers|
|Duly filled application form along with photographs||Duly filled application form along with photographs|
|Age proof (Passport, PAN card or any other certificate from a statutory authority)||Age proof (Passport, PAN card or any other certificate from a statutory authority)|
|Address proof (Driving licence, passport, voter ID card, telephone bill, ration card or any other certificate from a statutory authority)||Residence proof (Driving licence, passport, voter ID card, telephone bill, ration card or any other certificate from a statutory authority)|
|Educational qualification – latest degree||Educational qualification – latest degree|
|Salary slip of past three months||Certificate and proof of business along with business profile|
|Form 16 of past two years||Last three years’ income tax returns (self and business) with profit and loss account and balance sheets, duly certified / audited by a chartered accountant|
|Last six months’ bank statements (salary account)||Last 12 months bank statements (business account)|
|Processing fee cheque||Processing fee cheque|
|Photocopies of property title documents, approved plan||Photocopies of property title documents, approved plan|
Note that all these documents must be self-attested.
Time taken for loan sanction at PNB
It takes five to seven days after the submission of all the necessary documents for PNB to approve your home loan request.
Loan tenure at PNB
The bank will offer you a maximum home loan repayment tenure of 30 years or up to the age of 70 years.
Pre-payment charges on housing loan at PNB
There are no prepayment charges on home loans if it is linked with a floating rate of interest.
Can I get a home loan from PNB from Delhi for purchase of property in Mumbai?
Housing loans can be granted from the place of residence, irrespective of the place of property.
Can PNB home loans be sanctioned for unapproved colonies?
PNB home loans are sanctioned for plans approved by a competent authority.
Can I get a home loan at PNB for an under-construction flat?
PNB offers home loans for under-construction flats to only approved builder projects.