PNB HOUSING FINANCE

PNB Housing Finance offers home loans at rates of interest starting from a low rate of 7.35% p.a., on the basis of the nature of employment. Avail loans of up to 90% of the cost of the property for a maximum repayment tenure of 30 years. The processing fee is charged with up to a nominal 0.50% of the loan amount (plus taxes), subject to a minimum of Rs.10,000.

Home Loan

A home loan is often a very large amount that you borrow from the bank, for the purpose of buying a home. The EMI also tends to be high and therefore you need to decide beforehand how much an amount of loan you would want, what interest rate you are comfortable paying, and also the tenure of the loan.

PNB Housing Finance Limited Home Loan Details

ParticularsDetails
Interest RateOnwards of 7.35% p.a.
Loan AmountUp to 90% of property cost
Processing Fees0.25% – 0.50% of the amount of loan applied for + Taxes (as applicable)
Prepayment/Foreclosure ChargesNIL – for floating-rate packages
2% to 3% – for fixed-rate package and non-individuals
TenureUp to 30 Years

If you plan to apply for a loan to buy property/plot or construct your own house, then check out Fincity, where you will get a variety of options to choose from!

But also make sure you’re aware of all your responsibilities before you take a loan.

PNB Housing Finance Limited Home Loan Interest Rate

Below is a table consisting of the interest rates for various schemes offered by PNB.

SchemesInterest Rates
PNB Home Purchase Loan7.35% to 9.10%
PNB Home Improvement Loan7.35% to 9.10%
PNB Plot Loan8.35% – 10.10%
PNB Loan for NRIs7.35% to 9.10%
PNB Unnati Home Loan10.75% to 12%

PNB Housing Finance Limited Home Loan Eligibility Criteria

PNB, like many other financial institutions, has a base eligibility criteria that every applicant must meet before availing a Home Loan.

ParticularsCriteria
Eligible Age of Borrower21 – 70 years
Minimum Eligible IncomeAbove ₹50,000/-
Loan Amount Eligibility₹20 Lakh – ₹5 Cr
LTVUp to 90%

Factors Affecting EMI of Home Loan 

Home Loan EMI can be calculated using an online Housing Loan Calculator which takes into account many factors like loan amount, interest rate and the tenure or duration for which you are planning to avail the loan. 

  • Loan amount – This is the amount you want to borrow to fulfil your home needs. ‭‭Home loan amount mainly depends on value of the property for which the loan is availed. 

Fincity offers Home Loan for amounts as low as Rs. 30 lakhs to as high as Rs. 5 Crores. 

  • Loan Tenure – Loan tenure is the duration over which a Home Loan is repaid. In practice, a shorter tenure results in higher EMIs but helps you save on the total interest payout of the loan. The longest loan tenure available across banks and NBFC’s in India for buying a home on a loan is around 30 years, subject to the borrower’s current age and retirement age.  
  • Interest Rate – The Rate of Interest is the interest charged on the borrowed loan amount and is one of the components of monthly EMI along with principal repayment.

Home Loan Amortization Calculation 

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that make up each monthly payment until the loan is paid off at the end of its tenure. 

The Home Loan monthly EMI will be equal, in a schedule of amortization, but the component of the EMI, which consists of principal payment and also the interest payment, will not remain the same every month, meaning it keeps on changing. 

The EMI schedule of loan for an amount if Rs.20 lakhs and for a tenure of 30 years is explained below in the table. 

YearInterest Paid During each YearPrincipal Repaid During Each YearTotal Amount Paid During Each Year (Interest + Principal)Principal Outstanding
2021 Rs.1,34,349 Rs.21,315 Rs.1,55,664 Rs.19,78,685 
2022 Rs.1,32,864 Rs.22,799 Rs.1,55,664 Rs.19,55,886 
2023 Rs.1,31,277 Rs.24,387 Rs.1,55,664 Rs.19,31,499 
2024 Rs.1,29,579 Rs.26,085 Rs.1,55,664 Rs.19,05,415 
2025 Rs.1,27,763 Rs.27,901 Rs.1,55,664 Rs.18,77,514 
2026 Rs.1,25,820 Rs.29,843 Rs.1,55,664 Rs.18,47,671 
2027 Rs.1,23,742 Rs.31,921 Rs.1,55,664 Rs.18,15,749 
2028 Rs.1,21,520 Rs.34,144 Rs.1,55,664 Rs.17,81,606 
2029 Rs.1,19,142 Rs.36,521 Rs.1,55,664 Rs.17,45,084 
2030 Rs.1,16,599 Rs.39,064 Rs.1,55,664 Rs.17,06,020 
2031 Rs.1,13,879 Rs.41,784 Rs.1,55,664 Rs.16,64,236 
2032 Rs.1,10,970 Rs.44,694 Rs.1,55,664 Rs.16,19,542 
2033 Rs.1,07,858 Rs.47,805 Rs.1,55,664 Rs.15,71,737 
2034 Rs.1,04,530 Rs.51,134 Rs.1,55,664 Rs.15,20,603 
2035 Rs.1,00,969 Rs.54,694 Rs.1,55,664 Rs.14,65,908 
2036 Rs.97,161 Rs.58,503 Rs.1,55,664 Rs.14,07,406 
2037 Rs.93,087 Rs.62,576 Rs.1,55,664 Rs.13,44,830 
2038 Rs.88,730 Rs.66,933 Rs.1,55,664 Rs.12,77,897 
2039 Rs.84,070 Rs.71,594 Rs.1,55,664 Rs.12,06,303 
2040 Rs.79,085 Rs.76,578 Rs.1,55,664 Rs.11,29,725 
2041 Rs.73,753 Rs.81,910 Rs.1,55,664 Rs.10,47,814 
2042 Rs.68,050 Rs.87,614 Rs.1,55,664 Rs.9,60,200 
2043 Rs.61,949 Rs.93,714 Rs.1,55,664 Rs.8,66,486 
2044 Rs.55,424 Rs.1,00,239 Rs.1,55,664 Rs.7,66,247 
2045 Rs.48,445 Rs.1,07,219 Rs.1,55,664 Rs.6,59,029 
2046 Rs.40,980 Rs.1,14,684 Rs.1,55,664 Rs.5,44,344 
2047 Rs.32,994 Rs.1,22,669 Rs.1,55,664 Rs.4,21,675 
2048 Rs.24,453 Rs.1,31,210 Rs.1,55,664 Rs.2,90,465 
2049 Rs.15,317 Rs.1,40,346 Rs.1,55,664 Rs.1,50,118 
2050 Rs.5,545 Rs.1,50,118 Rs.1,55,664 Rs.0 

Formula for EMI Calculation 

Generally, the EMI for a Home Loan is calculated using the given formula: 

E = P * r * (1+r) ^ n / ([(1 + r) ^ n] – 1) 

In the formula mentioned above, 

E = Equated Installment 

This is the total obligations required to pay per month 

P = Amount of Loan 

This can be anywhere between Rs.15,00,000 to Rs.5,00,00,000 

r = Rate of Interest  

This means the interest rate per month. For Punjab National Bank, this ranges from 6.9% to 8.30%  

n = tenure in months  

Usually, the tenure for a home loan ranges from 15 years to 30 years. 

For PNB Home Loans, the tenure ranges from 60 months all the way up to 360 months or 30 years. 

Home Loan Fees and Additional Charges 

Depending on the loan type you are applying for, a few charges may be levied. They are mentioned below: 

  • Processing fees: This is a one-time fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge is dependent on the bank and the loan scheme you are applying for, the processing charge thus is a variable metric. This fee is non-refundable. 
  • Prepayment charges: This is the fee or the penalty you will have to pay the lender, should you plan to repay your home loan before the completion of the tenure of the loan. 
  • Conversion fees: Some banks might also charge a small conversion fee if and when you decide to switch to a different loan scheme or even a different loan provider in order to decrease the interest rate associated with your current scheme. 
  • Cheque dishonor charges: This type of fee is levied when the loan provider, like the Bank or NBFC, is provided that a cheque issued by the borrower is found to be dishonored due to reasons such as insufficient funds in the borrower’s account. 
  • Home insurance: One of the best ways to protect the home is to insure it. The premium of this insurance should be paid directly to the concerned company during the insurance term to make sure that the insurance policy is running during the home loan tenure. 
  • Default charges: Loan providers also charge a penalty on delayed or missed repayments i.e., if you do not make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. But these types of defaulting charges vary from one bank to another. 
  • Incidental charges: These charges cover the expenses and costs incurred by the bank to recover dues from a borrower who has failed to make his monthly installments on time. 
  • Statutory/regulatory charges: The fee might include all the expenses associated with the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and also stamp duty. You can visit the CERSAI’s official website to know more about these charges. 
  • Photocopy of documents: The fee is paid to the bank if you need a photocopy of your home loan documents for any personal needs. 
  • Change in loan term: Some banks also charge a nominal fee if you think of changing the tenure of your loan. 
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