How much housing loan can i get
Q. Who is Eligible for a Housing Loan?
A. Individuals in the age group 18-65 years having regular income wishing to own residential properties in India are eligible to avail Housing Loan.
Q. What is the maximum amount which one can get as Housing loan?
- For Construction, addition or purchase of new/old house/ flat/ plot- Need Based, no upper cap.
- For Repair/Renovation/ alterations - Max Rs.25 lac
- For Furnishing- 10% of loan amount max Rs.5 lac
Q. How much I have to contribute from my own sources to get Housing loan?
A. Following are the minimum amount one has to contribute:
For loans upto Rs.75.00 lac 20%
For loans above Rs.75.00 lac 25%
For Plots 40%
Q. What is the ROI at present?
A. At present under floating option Bank is financing at Base Rate for Housing loans upto Rs.75.00 lac, for loans above Rs.75.00 lac ROI charges is Br+0.25% (presently 10.50%).
Under fixed option ROI is fixed at rates higher by a fixed spread of 50 basis points with reset clause of five years.
0.50 % extra will be charged on H/L for 3rd House.
Option can be changed from fixed to floating and vice versa with flat charges of 2% fee on Balance outstanding.
Q. How do I benefit if the interest is calculated on a daily reducing balance?
A. On the annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.
In the case of the daily reducing balance, which is the methodology we employ, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. This in essence lowers your effective rate of
Q. Can I get an in-principle approval and actually avail of the loan later?
A. Before you choose the house you want to buy, we give you an in principle approval based on your income and repayment capacity.
This makes the entire process of identifying and buying a house easier and more flexible. You won't be under pressure to identify a house as you know how much funds the bank would make available to you.
Q. And how long is this approval valid?
A. This in-principle approval is valid for 6 months to give you sufficient time to choose a flat/house of your choice.
Q. How long does it take to get my loan sanctioned?
A. Your loan can get sanctioned in 3 to 7 working days after completion of all the desired formalities by you.
Q.) What will be the repayment period of housing loan?
A. You will get the housing loan for a maximum period upto 25 years, inclusive of moratorium period, if any, or upto your age of 65 years, whichever is earlier. The Bank may, at its discretion, subject to maximum repayment period of 25 years, permit the repayment
upto your age of 70 years. Moratorium or repayment holiday may be permitted where the house is constructed till completion of construction or 18 months (6 months in case of repair/renovation/addition/ alteration) from the date of disbursement of first instalment of the loan, whichever is earlier.
However, in case of finance for under construction house/ flat from Private builders, maximum moratorium of 36 months or possession whichever is earlier may be permitted subject to monthly servicing of interest.
In case of joint-borrowers, the repayment period is fixed according to the age of younger borrower, depending upon the repaying capacity.
Q.) Can Housing Loan be given for purchase of PLOT?
A. Yes, it can be given for purchase of Plots (upto 60% of the cost of Plot) for constructing the house building thereon at a later stage. Loan amount for purchase of plot has been restricted to 60% of housing loan eligibility.
Q.) Can I apply jointly with my spouse? Will both our salaries be taken into consideration for calculating the repaying capacity?
A. Yes, your salaries can be clubbed for the purpose of calculation of the repaying capacity. This can be done either when the property is jointly held with the spouse or the spouse stands as a coborrower.
Besides, income of parents and earning children (whether married or unmarried) is also taken into account for determining the income for the purpose of applicant borrower’s repaying capacity. In such cases, they are made co-borrowers.
Thus, we ensure a great deal of flexibility in the entire exercise of financing your house.
Q.) What security do I have to furnish?
A. PNB requires mortgage of the property for which the loan is being taken. Where mortgage can't be provided, other tangible security needs to be provided. The title of the property should be clear, for which a certificate would be required from the Bank's
approved advocate, safeguarding your interests as well as Bank's interests.
In case mortgage cannot be created immediately in situations like house/flat is being purchased/allotted by the Housing Board, Development Authorities or Co-operative Society/Builder, and title/conveyance deed are executed in favour of purchaser only
after completion of construction & possession/ making full payment of the cost of house/flat, a stamped Tripartite Agreement is executed amongst Housing Board/Development Authority/Cooperative Society/ Builder, the intending borrower and the Bank before release of the loan. To secure such loan, GUARANTEE of person(s) acceptable to the Bank is also obtained.
Q.) In case funds for accommodation of housing property have already been raised by me, can the additional loan on pari passu or 2nd charge basis be sanctioned to me by
A. Yes, the facility is available (Max. Rs.20.00 lac) for confirmed employees of Central/ State Govt./ PSUs, who might have raised funds for construction/ acquisition of house/ flat from their employer.
Q.) What are the processing fees charged by the bank?
A. A very nominal upfront fee of 0.50% (Max. Rs.20,000/-) is charged by us for loan amount of upto Rs.300 lac. For loans above Rs.300 lac a flat upfront fee of Rs.50000/- is charged (Plus taxes as applicable).
Q.) What are other charges I have to pay?
A. Documentation charges of R.1350/- plus all other out of pocket charges viz. CIBIL, Advocate fee, Valuation charges, Central Registry etc.
A. EMI stands for Equated Monthly Installments. Such installment comprises of both principal and interest component.
Q.) Can I prepay the loan? Are there any charges?
A Yes, you can prepay the loan at any stage without any charges on loans sanctioned on Floating rate of interest.
In case of loans sanctioned at fixed rate of interest there are no charges in case it is pre-paid from your own sources. However, prepayment charges of 2% are levied in case of shifting of Housing Loan A/c by takeover to other banks/ housing finance institutions.
You can also deposit more than your EMI amount into your loan account and bring down your interest burden as and when funds are available with you.
Q.) Where can I avail PNB Housing loans?
A. You can contact any of the PNB branches for availing Housing loan. Bank also has specialized 79 Retail Assets Branches for Retail Loans. Contact details of the branches are available on Bank’s website www.pnbindia.com.
Q.) If I have funds, is it still worthwhile to avail of a bank loan for buying a house?
A. It is generally advantageous to take a Housing loan as it would enable you to get tax exemptions. However, please consult your CA/ income tax advisor to know benefits in your specific case.
Q.) What are the tax benefits of taking PNB Housing Loan?
A. Under the Indian Income Tax Act of 1961, resident Indians are eligible for certain tax benefits on principal and interest components of a loan.
Under Section 24(1), interest repayment of Rs.1,50,000/- per annum qualifies for tax saving under the new Finance Act. An added benefit under Section 80(c) on repayment of principal amount to the extent of Rs.1,00,000/- is also available on the same loan subject to
compliance with conditions stipulated in the IT Act.
Recently Government, has also announced an additional rebate of Rs.100000/- on interest on fresh H/Loans for this year only.
Q.) How does PNB housing loan compare with those offered by other institutions?
A. There is total transparency with regard to the rate of interest and the fees charged by us.
- You pay substantially less in repayments as compared to others.
- We have no upper limit. The loan amount is determined by repaying capacity and the value of property to be financed.
- We offer loans for the longest tenors (up to 25 years) with the flexibility to pre-pay the loan without any charges/penalty.
- We provide finance for both new and old houses/flats and for construction of houses.
- Cost of furnishing the house can also be included in the project cost.
- With PNB Housing Loan, you can choose between fixed rates of interest and floating interest rates.
- We levy interest based on daily reducing balance, unlike the annual/monthly reducing balance method used by several other financiers/banks and accordingly actual effective rate of interest is much less when compared to other banks.
- You can also avail Overdraft facility upto Rs.5.00 lac for personal need over & above your Housing Loan from day one. *
- Top up loan is available after three years under Flexible Housing Loan Scheme of the Bank.* Under this variant Flexibility to avail Housing loan in shape of Term Loan & Overdraft under Flexible Housing Loan variant (80%-T/Loan & 20%-OD), where OD component is proportionately increased which is equivalent to reduction in term loan component after three years. Besides, borrowers are entitled to 20% increase in the original total limit sanctioned after a lapse of five years.
- Online application facility also available.
- There are no hidden charges.
Q. Are NRIs are also eligible for Housing loan from PNB?
A. Loan to NRI/ PIOs is also available for acquisition/construction/repairs/ renovation/improvement of flat/house to be owned in their names. NRIs/PIOs in India as also for the purpose of purchase of plot. This flat/house, acquired by utilization of the loan, can be used for self occupation/letting out. Loan can also be considered where NRI/PIO is a principal borrower with resident close relative(s)
Q. What are the documents required by PNB at the time of applying Housing Loan?
A. While applying for housing loan, you are required to furnish the following information/ documents:
- Loan application form, duly completed, with Photograph.
- Identity Proof
- Address/ Residence Proof
- Age Proof
- Education Qualification Proof
- Income Proof:
alaried Class. Salary Certificate issued by the employer (indicating gross and net salary), Income Tax Return, Bank Statement of Salary account for last six months.
Agriculturist. Record of land holding and cropping pattern or any other proof of income.
For all other individuals. Last 3 years Income Tax Returns or Assessment Order and Computation of Income Statement; Bank Statement of Account for last six months.
- Income Proof of spouse/ earning children/ co-borrowers (if applicable).
- Undertaking of the borrower/co-borrower as to whether he/she owns residential property in his/her name.
- Any other document which may be necessary as per requirement of the case.
* conditions applySource: www.pnbindia.in