PNB Loan Against Property: Interest Rate 2016

Loan Against Property

Punjab National Bank loan against property scheme can be taken against residential as well as commercial property. You can take this loan for your personal and business needs with no foreclosure charges. 

The interest rates applicable on PNB loan against property are dependent on the profile of the customer and the maximum loan amount is as high as Rs, 5 Crores. For the convenience of the customers, the bank has set the loan repayment period of up to 120 EMIs or up to 10 years at the low processing fee of 0.99%.

PNB LAP Details

ParticularsDetails
Interest RateCustomized
Loan AmountFor Personal Needs: Rs. 1  to 5 lakh

For Business Needs: Rs. 5 lakh to Rs. 5 Crores
TenureUp to 10 years
Processing Fees0.99% of the loan amount + Service tax as applicable or Maximum of Rs. 45,000/-
Prepayment Charges


NIL

How to Apply

The steps to apply for the loan is very simple and convenient. All you have to do is submit the filled up application form and the documents as per the eligibility criteria at the nearest bank branch.

PNB Loan EMI Calculator

EMI calculator is the tool that is used to calculate EMI as per the chosen tenure and interest rate. Let us take an example that a person wants a loan of Rs. 15 lakhs at the interest rate of 14% p.a for the tenure of 10 years. The monthly installment that he will have to pay every month is Rs.23,290/-.

Must Read  IndusInd Bank Loan Against Property: EMI Calculator & Interest Rate 2016

For detailed information, you can refer to the below-given table:

Table for EMI per month, Total Interest Outgo and Total Amount

Amount (in Rs.)Interest Rate (p.a)Loan Tenure (in years)EMI (in Rs.)Total Interest Outgo (in Rs.)Total Amount (Principal + Interest) (in Rs.)
15,00,00014%11,34,6811,16,16816,16,168
15,00,00014%272,0192,28,46417,28,464
15,00,00014%351,2663,45,59218,45,592
15,00,00014%440,9904,67,50619,67,506
15,00,00014%534,9025,94,14320,94,143
15,00,00014%630,9097,25,42022,25,420
15,00,00014%728,1108,61,24123,61,241
15,00,00014%826,05710,01,49625,01,496
15,00,00014%924,50111,46,06026,46,060
15,00,00014%1023,29012,94,79627,94,796

Amortization Table

YearPrincipal (in Rs.)Interest (in Rs.)Balance Amount (in Rs.)
174,1172,05,36314,25,883
285,1851,94,29513,40,698
397,9061,81,57412,42,792
41,12,5281,66,95211,30,264
51,29,3331,50,14710,00,931
61,48,6491,30,8318,52,282
71,70,8481,08,6326,81,434
81,96,36483,1164,85,070
92,25,68953,7912,59,381
102,59,64920,088

Loan Eligibility Criteria

The eligibility to apply for the loan is dependable upon the profile of the applicant.

For Personal Needs

  • Employees of Central/State Govt./Schools/Colleges/Public Sector Undertakings (PSUs)/Reputed Corporates and Other Income Tax Assesses
  • Maximum age of 60 years
  • Minimum Net Monthly Salary of Rs. 10,000/- for last 3 years for salaried class
  • Minimum Net Annual Income of Rs. 1,20,000/- for other income tax assesses
  • Quantum of Finance from Rs. 1 lakh to Rs. 5 lakh
  • Maximum 75% of the market value of the property
  • Maximum three times of Annual Gross Income
  • Maximum Four times of Annual Gross Income
  • Net Income should be double that of Monthly Instalment in the case of Term Loan as well as Overdraft limit on monthly reducing DP basis.
Must Read  Indian Overseas Bank Loan Against Property

For Business Needs

  • Existing customers with a satisfactory track record of three years (cash profits during last three years and net profit in the immediately preceding year)
  • Minimum Net annual Income/ Net Profit of Rs.120000/- and above
  • Quantum of Finance from Rs. 5 lakh to Rs. 5 Crores
  • Maximum 75% of the market value of the property
  • Maximum three times of Annual Gross Profit
  • Maximum Four times of Annual Gross Profit
  • Net income should be 1.5 times that of EMI in the case of Term Loan and that of interest amount ( on full sanctioned limit) in the case of Overdraft limit. Interest and depreciation charges will be added back for the purpose of arriving at Net Income/ profit

Documents Required

The following is the list of documents that are required at the time of loan:

  • Filled mortgage loan application form
  • Identity proof (Passport/Voters ID Card/Driving License/PAN Card)
  • Address proof (Ration card/Telephone bill/Electricity bill/Lease agreement/Passport/Trade license/Sales Tax certificate)
  • Bank statement (latest 6 months bank)
  • Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
  • Income Tax/Sales tax returns of proprietor/partners/firms/companies
  • Last 2 years financial statements attested by CA
  • Copy of license/NOC from local body or license from the competent authority for running the business

PNB Loan Against Property Application Form

To get a loan from PNB, an applicant has to fill in the below-given details in the form:

  • Name of the applicant/s
  • Address proof
  • Birth certificate
  • Income proof
  • Business proof
  • Purpose of loan
  • Processing fee
  • Repayment mode
  • Tenure period

Punjab National Bank Loan Against Property Interest Rate

The PNB loan interest rate for LAP is calculated on the basis of the borrower's profile like the loan amount, tenure, etc.

Must Read  L&T Finance Loan Against Property Interest Rates 2016

You can also do the LAP interest rate comparison of some of the mortgage loan rates here:

SBI – Up to 12.65% p.a

Axis Bank – 9.50% p.a onwards

HDFC Bank – Up to 13.45% p.a 

ICICI Bank – Up to 14% p.a

PNB HFL – 12.25% p.a onwards

IndusInd Bank – 9.65% p.a

Punjab National Bank Loan Processing Fees

If you are taking a LAP from PNB, the processing charge applicable on the loan is 0.99% of the loan amount.

Foreclosure Charges

There are no prepayment charges for LAP from Punjab National Bank.

Features & Benefits

  • LAP for personal & business needs
  • Loan amount up to Rs. 5 Crores
  • Loan against residential/commercial property
  • Repayment period of 120 EMIs
  • Overdraft facility allowed on Monthly Reducing Drawing Power basis
  • Processing fee of less than 1%
  • No prepayment charges