Punjab and Sind Bank Home Loan
Home Loan Bank Information
Table of Contents
- Punjab and Sind Bank Home Loan Interest Rates
- Eligibility Criteria for Punjab and Sind Bank Home Loan
- Punjab and Sind Bank Home Loan Schemes
- Punjab and Sind Bank Home Loan Types
- Punjab and Sind Bank Home Loan for NRI or PIO
- How to Apply for Punjab and Sind Bank Home Loan
- Document Checklist for Punjab and Sind Bank Home Loan
Introduction
The origin of Punjab and Sind Bank can be traced to the state of Punjab in 1908 with the mission of the founding fathers to uplift the weaker sections of the society. It is now a public sector bank with pan India presence still upholding the ethos of the founders in maintaining a customer centric approach.
Among all the products, home loans of Punjab and Sind Bank is aligned with the Indian traditions of home ownership, notwithstanding the huge shortage of affordable housing in the country.
The cost of construction and the paying capacity of the prospective owner are widening by the day. Punjab and Sind Bank aims to bridge this gap as far as possible by some innovative home loan solutions, designed to meet every need of their discerning clientele.
Punjab and Sind Bank Home Loan Interest Rates
Interest Rates are as of 2019
When you contemplate a dwelling unit of your own, you work out the financials with respect to your requirements. This constitutes the basis of your home loan proposal. While looking for the ideal amount of loan, the important factor to be reckoned is the rate of interest and the upfront processing fee you have to shell out, telling on the cost of capital.
As per RBI stipulations PSB follows the MCLR pattern deemed compulsory for all banks. Accordingly, look at a snapshot at their MCLR range effective from 16th July 2019.
| Tenor based MCLR effective from 16th July 2019 in PSB | |
|---|---|
| Tenor | Rate |
| Overnight MCLR | 8.35% |
| One Month MCLR | 8.45% |
| Three Month MCLR | 8.55% |
| Six Months MCLR | 8.65% |
| One Year MCLR | 8.70% |
| Three Year MCLR | 9.25 |
| Base Rate | 9.70% |
| BPLR | 14.00% |
In the home loans, Punjab and Sind Bank applies floating rate linked to One Year MCLR and accordingly the rates of interest applied to the home loans are
| PSB Floating Rates of Interest in Home Loan Products in 2019 | ||
|---|---|---|
| Type | Rate | Processing Fee |
|
Apna Ghar Loan
|
8.70% to 8.95% Depending on the amount of loan. |
0.15% to 0.25% depending on the loan amount subject to maximum Rs.15000 + GST |
Eligibility Criteria for Punjab and Sind Bank Home Loan
The bank provides a wide variety of schemes covering a very broad cross section of target audience. At this stage, take a look at the eligibility criteria for the home loan scheme at PSB.
| Eligibility criteria for PSB Apna Ghar Home Loan | |
|---|---|
| Type | Term Loan |
| Target Audience |
Resident Indians
|
| Purpose |
|
| Age | Not less than 21 years and maximum 60 years |
| Income criteria |
The net take home pay / income should conform to:
|
| Quantum of Loan |
|
| Margin |
Purchase of Plot:
Construction or plot purchase and construction:
For purchase of ready to occupy dwelling unit:
For renovation / alteration/ repairs:
|
| Tenure |
By occupation:
|
| Security | Equitable mortgage of the property charged to us |
| Guarantee | From the spouse or major son if available |
| Eligibility of PSB Apna Ghar Top-up | |
| Type | Term Loan or Overdraft facility |
| Purpose | For additional fund requirement to the existing home loan borrower |
| Eligibility | Minimum 24 months of repayment with us and the property is occupied by you |
| Quantum of loan | Maximum Rs.10L |
| Repayment | Aligned with the existing housing loan |
| Margin | 25% |
| Security | Value of the charged property for existing home loan |
| Guarantee | Same as the home loan |
| Eligibility of PSB Apna Ghar Kisan Loan | |
| Type | Term Loan |
| Purpose | Same as the Apna Ghar Home Loan but applicable in the Semi-Urban and Rural sector only |
| Eligibility | 40% of the gross income after factoring the proposed EMI |
| Quantum of loan |
Maximum Rs.20L subject to the following
|
| Repayment | 20 years or the age of 70 years whichever is earlier |
| Margin |
|
| Security | Value of the charged property for existing home loan |
| Guarantee | Same as the home loan |
Punjab and Sind Bank Home Loan Schemes
Now that you are aware of the home loan schemes with Punjab and Sind Bank, it is time to recapitulate and refresh your memory with the rates of interest and other charges.
| Floating Rates of Interest in PSB Home Loan Products in 2019 are | ||
|---|---|---|
| Type | Rate | |
| Apna Ghar Loan | Up to Rs.75L | 8.70% |
| Above Rs.75L | 8.95% | |
| Apna Ghar Top up Loan | 1% above the rate of interest charged in the existing home loan | |
| Apna Ghar Kisan Loan | 8.70% | |
Punjab and Sind Bank Home Loan Types
You have seen that Punjab and Sind Bank schemes span a range of purposes to suit every need. The types of home loans offered by them are in the form of Term Loan and only in the case of Top-up, they offer overdraft facility. Needless to mention, their home loan solutions are geared to accommodate all sorts of possibilities in very generous features including the upper limit of the loan amount.
Now look into the various home loan solutions in their bouquet. It further gives an opportunity to recall all the salient points discussed so far.
PSB Apna Ghar Home Loan
The nomenclature of their main home loan solutions spells personal touch and sensibility in sync with the Indian ethos.
It is a loan that offers finance for different needs to you if you are eligible. They are also generous in being flexible with the upper limit of the loan provided you meet the eligibility norm defined by the bank.
The purposes for which their home loan suits everyone are tabulated below.
- Construction of your house on the plot of land owned by you.
- Acquire a ready to occupy dwelling unit.
- Purchase a plot and then construct your dream house with your own design and specifications.
- Home improvement including addition, alteration, renovation, repairs and all other embellishments related to your dwelling unit.
PSB Apna Ghar Top-up Loan
It offers you the means to seek additional funds for your personal needs based upon the residual value of the housing loan. However, the upper limit of this loan is limited to Rs.10L and the margin is a flat 25%. The rate of interest is higher than the existing housing loan to the extent of 100 basis points over the applied rate of interest.
The unique pro of this loan is that apart from the normal term loan, you can also seek overdraft facility.
PSB Kisan Home Loan
This loan is specifically designed for catering to the prospective home loan borrowers in the semi-urban and rural areas of the country. Thus they are disbursed by their branches located in this sector.
It serves all the purposes alike Apna Ghar Home Loan, but the limits have been scaled down for the categories who reside in the targeted areas of the country. Many of the features are also attuned to the semi-urban and rural milieu in conformity with the eco-system prevalent there.
A summarized view of a few for a better comprehension is given below.
- Income Eligibility: The net income after factoring all the deductions and EMI should not be less than 40% of the gross income.
In tune with the locality, the income proof can be the ITR if available, else certificate from the appropriate authority taking into account the land holding and the value of crop produce etc, will suffice.
- Security: If equitable mortgage of the property is not possible, the alternative methods detailed below may be approached:
- Any property other than agricultural land that can be mortgaged with realizable value of 150% of the loan amount.
- LIC policy with surrender value equal or exceeding 150% of the loan amount.
- Any other Government Instrument like the KVP/ NSC good for 150% of the loan amount.
Punjab and Sind Bank Home Loan for NRI or PIO
Punjab and Sind Bank boast of a significant NRI clientele to whom they extend a host of services in International Banking. It is customized to their specific needs. Before you proceed further you need a clear idea of who a NRI is.
NRI is an acronym for Non Resident Indian. As the name suggests, the NRI though an Indian citizen and holder of a valid Indian Passport, resides in a country other than India for an uncertain period; primarily earning a living. (meta-calculator.com) It may encompass employment, deputation with international agencies or overseas assignment of employees in India or business.
The bank provides extensive facilities but do not offer any home loan solution for them in the present time.
Housing Loan for High-net-worth Individuals:
When it comes to high-net-worth individuals, they are most welcome at PSB. However, there is no clarity as to who can be classified as the elite customer falling under the category of HNWI.
The confusing classification is because of the fact that the measure depends on the country of residence and its economy. Though India is a fast growing economy, no measure has been assigned to it yet. Suffice to say, you may consider one a HNWI who is flush with liquid assets.
Though they do not have a housing loan designed for them at Punjab and Sind Bank, the very fact that the bank does not limit the maximum loan amount, could eminently fit their scheme in proposing costly projects.
Amount of loan permitted in this scheme:
As already enunciated, there is no special scheme designed for the HNWI. But the Apna Ghar Home Loan offers quantum of loan based on income and margin eligibility without any upper limit.
PSB Home Loan for NRI
Any NRI is entitled to own an immovable property in India other than agricultural farm land or plantation subject to RBI guidelines and conforming to FERA provisions.
In spite of this, Punjab and Sind Bank does not offer any Home Loan solution to this important and discerning client base for the present.
How to Apply for Punjab and Sind Bank Home Loan
Punjab and Sind Bank has set standards for dealing and processing of credit facilities which have definite time lines, which you can access in their Citizen’s Charter.
Notwithstanding such a measure, you are free to apply for their home loan in the portal online with some specific inputs to help the bank’s representative to guide you.
This apart, the following steps in sequence is worth noting.
- Submission of filled in application, complete in all respects along with documents.
- Evaluation, Inspection, vetting of the documents and sanction.
- Completing the post-sanction formalities and disbursal of the loan.
Document Checklist for Punjab and Sind Bank Home Loan
It is important to ensure that you have prepared your set of documents in conformity with the norms of Punjab and Sind Bank to ensure a seamless processing of your loan application.
| Documents to be submitted at PSB for Home Loan with the application: | |
|---|---|
| Sl No | Particulars |
| 1 | Completed application form |
| 2 | Three passport size photographs |
| 3 | Identity proof |
| 4 | Age proof |
| 5 | Residence / address proof |
| 6 | Statement of bank account / passbook for the past six months |
| 7 | Form 16 / ITR for salaried individuals |
| 8 | ITR for three years for self employed |
| 9 | Address proof of business for the non-salaried |
| 10 | Personal assets and liabilities statement |
| Property related documents | |
| Sl No | Particulars |
| 1 | Copy of plan approved by the competent authority |
| 2 | Estimate of the project form an approved architect |
| 3 | NOC if required |
| 4 | Property documents like deeds, tax receipt etc. |