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Helpful Guide For Punjab National Bank (PNB) Loans

To help its customers grow and fulfill their dreams – PNB provides a wide variety of loans. Different types of loans offered by PNB are Housing, vehicle, education, personal and miscellaneous loans.

PNB Home Loans

Different types of PNB home loans available are – Private builder approved project on PAN India basis, PNB Pride housing loan for government employees, Housing loan for public, Housing loan for public under Pradhan Mantri Awas Yojana: housing for all, housing loan for public- Pradhan Mantri Awas Yojana – Housing for All-MIG, and the PNB Gen-Next Housing Finance Scheme for Public.

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The loan amount varies depending on the loan type, the income of the employee, and the value of the house. For example, under the PNB pride housing loan for government employees a loan amount of up to Rs.75 Lakhs or more is provided for purchasing a new house, plot, and to upgrade the house by adding a new room.

Eligibility for Obtaining the Home Loan

The eligibility criteria for the home loans varies with the type of home loan applied. The PNB pride housing loan for government employees is provided for permanent employees of central or state governments, defense personnel and for individuals who are part of paramilitary services. On the other hand, the housing loan for Public is granted for any eligible individual or jointly. The Gen Next housing finance is provided for customers who are 40 or below 40 years of age. However, if the loan is being taken jointly, then one of the borrowers should be 40 and the other borrower should be 45 or less. The net monthly salary should be a minimum of 35,000. Also check home loans of SBI Loans for lower interest rate.

PNB Car Loans

PNB provides different types of car loans for the different group of customers. The two different types of car loans are – PNB Pride Car loan for government employees and PNB car loan.

Apart from the car loans, PNB also provides two-wheeler loans – PNB Saarthi -Scheme for financing two wheelers to public, PNB power ride scheme for financing two wheelers to women. The car loans are provided for purchasing either the new car or a used car which is not older than three years.

Eligibility for Obtaining the Car Loan

To be eligible for obtaining the car loan, the government employee should have a minimum salary of 20,000 per month. If the salary of the borrower is less than this amount, then the income of the spouse or a family member can also be included if the other person is ready to be a co-borrower. As a security measure, the vehicle being purchased will be taken by the bank in case of failure to repay the loan. The PNB car loan is offered for any prospective car buyer to purchase either a new car or used car. The eligibility criteria for the PNB car loan is similar to that of the PNB car loan for government employees except that the customers do not have to be a government employee. if you have any issues with the loan account you can contact PNB Customer Care for online assistance.

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PNB Personal loan

PNB provides a personal loan to meet the needs of individuals of different age groups. The three different types of personal loans are – Personal loan scheme for public, personal loan scheme for pensioners, PNA Bagbhan scheme for senior citizens who own a house and advance against gold and jewellery.

Eligibility for Obtaining the Personal Loan

The eligibility criteria for different types of personal loans vary with the type of the loan. The PNA personal loan is provided for all permanent defense, central and state government employees, employees working in reputed institutions and having the salary account with PNB, and professionally qualified doctors with an annual income of above Rs.4 lakh and more. To avail the loan the borrower should have paid the tax for the past three years. The personal loan scheme for pensioners is provided for all types of pensioners obtaining the pension from PNB branch. PNB Baghban Scheme is provided for customers for Indian nationals who own a house and are above 60 years of age. The house can be under the name of the borrower or jointly with the name of the spouse. If the spouse is also the owner of the house, then one of them should be above 60 years of age and the other should 58 years of age. To know the eligibility of personal loan you can check PNB Net Banking with out visiting the bank.

PNB Loan Interest Rates & Emi Calculator

The home loan interest rates vary from 8.5 to 8.7 percent which is less compared to that offered by Axis Bank – 8.6 to 11.75 percent. The interest rates on the loan vary for each type of customers receiving the loans. For example, the interest rates for Floating PNB pride housing loan is MCLR (Marginal Cost of Funds based Lending Rate) as given by RBI plus 0.20 percent for a loan amount of up to 75 Lakhs. For Fixed General, the interest rate is Floating plus 0.50 percent irrespective of the loan amount i.e. the loan amount is above or below Rs.75 Lakhs. Special interest rates are offered for women’s. However, it is mandatory for the women to be owner or co-owner of the house under consideration or should be one of the loan applicants. PNB also provides PNB Debit Cards and PNB Credit Cards to their customers.

The car loan interest rate is 9.60 percent which is low compared to that offered by YES Bank – 10.25 to 12.25. The interest rates on the car loans are mainly determined considering the CIC score. For individuals with CIC score less than 700, the interest rate is MCLR plus 0.80 %. The interest rate decreases with the increase in CIC score. For individuals with CIC score between 700 and 749, the interest rate is MCLR plus 0.55 %. For individuals with CIC score of 750 and above, the interest rate is MCLR plus 0.35%. For individuals preferring fixed interest, the interest rate is MCLR plus 0.95%.

The interest rate on personal loans is in the range of 13 to 16 percent which varies with the loan tenure. PNB personal loan interest rates are low compared to other banks such as IndusInd, ICICI and Kotak Mahindra Bank which start at approximately 11.5 percent but range up to 18 or 19 percent. Individuals opting for loans valued Rs.5 Lakhs to 10 Lakhs and who does not have a PNB salary account have to pay an interest rate of MCLR plus 4.55 percent. Individuals opting for loans valued Rs.5 lakhs and availing it under check off feature, have to pay an interest rate of MCLR plus 5.55 percent and for all others, the interest rate is high of about MCLR plus 6.55%.

The interest rates are low on gold loans, reverse mortgage, and earnest money deposit.

Customers can calculate the monthly EMI using the EMI calculator available at the bank website. Chek your loan status with safe and secure PNB Mobile App Other types of loans offered by PNB are educational loans, loan against Mortgage of immovable property such as the house, and retail loan for Bharat Sanchar Nigam Limited (BSNL) Employees.

FAQ’s Related to PNB Loans

  1. Is it required to provide the income proof certificate to avail the PNB personal loan?

View Answer
Yes, customers have to provide the income proof while applying for the personal loan. The loan amount is decided considering the salary of the individual. The income proof helps the bank to assess the loan repayment ability of the individual.

2. What are the charges for pre-closure of a personal loan?

View Answer
There are no charges for pre-closure of the personal loan.

3. Is it mandatory to possess an account with Punjab National Bank to become eligible for obtaining a loan?

View Answer
No. it is not required to be a PNB customer to avail the wide range of PNB personal loans. However, the customers can obtain the loan very easily compared to the new members.

4. What is maximum repayment tenure for a personal loan?

View Answer
The maximum repayment tenure for a personal loan is 5 years. During the tenure of 5 years, customers can pay the EMI monthly and close the loan by the end of five years. Customers can also make prepayments either in whole or parts and close the loan before five years.

5. What is the interest rate for PNB car loan?

View Answer
PNB car loan interest rates vary from as low as 9.60 percent to 9.95 percent.

6. What is the maximum tenure for a car loan?

View Answer
The maximum period during which the car loan can be paid is 7 years.

7. What is the maximum amount of car loan that can be obtained?

View Answer
PNB provide a loan amount that is equal to 85% of the road price of the car as the car loan that can be repaid in tenure of 7 years.

8. Can a car loan be taken jointly along with the name of the spouse?

View Answer
Customers can take the loan jointly by including the name of the spouse. Showing the income of the spouse increases the amount of loan that can be obtained.

9. Is it possible to estimate the loan amount by providing the payable monthly EMI?

View Answer
PNB provides useful tools such as the loan EMI calculator to help customers plan their expenses accordingly and to find the eligible loan amount. By providing the approximate loan amount the EMI calculator provides the monthly EMI to be paid. By adjusting the monthly EMI and the tenure, the customer can identify the eligible loan amount that would best meet their financial conditions.

10. Is it required to provide security for availing the housing loan?

View Answer
Yes, generally the security is provided in term of depositing the sale deed with the bank. Hence, it is the responsibility of the customer to ensure that the title is clear without any encumbrances. The bank will also do its part of verifying the encumbrance of the property.

11. What is pre-EMI?

View Answer
EMI refers to equated monthly installments that are paid to the bank by the individual receiving the loan. EMI payments cover both the interest to be paid on the loan amount for a fixed tenure and the principal amount. Payment of EMI starts from the first month of sanctioning of the loan. In certain cases, like the purchase of a house under construction full loan amount is not released. In such cases, the EMI paid by the customer includes only the simple interest until the full loan amount is released and it is termed as Pre-EMI.

12. Does the EMI or the loan tenure change with the floating rate of interest?

View Answer
Generally, the loan tenure is changed with the floating rate of interest. The EMI is kept the same to prevent inconvenience to the customers.

13. When will the customer be provided with the loan amount after applying for the home loan?

View Answer
After applying for the home loan, the loan eligibility of the individual is checked. If the customer is found eligible, then the bank checks if the documents are legally correct and if the property can be purchased by the customer. If the documents are legally correct, then loan amount will be provided to the developer of the project in parts as the construction progresses.

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