Punjab National Bank NRI Home Loan

Punjab National Bank NRI Home Loan Interest Rates

ParametersDetails
Interest Rate6.75% to 7.80%
Age Criteria21 to 70 years
Max. Loan Amount50,00,000
Max. Loan Tenure30 years
SecurityEquitable mortgage of the property in question

Purpose of Punjab National Bank NRI Home Loan

  • For construction of residential house on land already owned.
  • For purchase of plot (Plot must be located in developed/ developing residential locality and properly demarcated) and construction of residential house thereon. (Utilisation of loan amount for purchase of Plot will be restricted to 60% of eligible/ sanctioned loan amount) .
  • For purchase of house/ flat.
  • For renovation/ extension/ repair of residential house already owned.
  • For purchase of unfinished/ old house and renovation/ extension/ repair of the same.
  • For taking over of housing loans from other financial institutions/ banks.

Punjab National Bank NRI Home Loan Features & Benefits

  • Attractive Interest Rates as per the individual's eligibility
  • Low processing fees
  • One time processing fee
  • Loan amount depending upon the eligibility criteria
  • It has PAN India branch network provides easy access to the customers
  • Higher tenure period
  • Additional top up loan for your personal use
  • Easy loan approval process
  • Minimal documentation
  • Attractive rates on Balance Transfer of your existing loan
  • Transparent process with no hidden charges

Eligibility Criteria for Punjab National Bank NRI Home Loan

  • Non-resident Indians (NRI) having valid Indian passport, Overseas Citizen of India (OCI) and persons of Indian origin (PIO) having foreign passport
  • Applicant should have NRI status of 2 to 3 years
  • Minimum age 21 years
  • Maximum age 60 years or retirement age (whichever is earlier)
  • Applicant should have a regular source of income
  • Minimum employment abroad of 6 months with valid job contract/work permit
  • Spouses and close relatives of NRIs who are residents can join NRI as Joint applicants

Factors Affecting Punjab National Bank NRI Home Loan Eligibility

NRI customers are eligible to avail an NRI home loan ranging from Rs 5 lakhs to a maximum of Rs 3 crores which is primarily based upon their repayment capability and property value. Repayment capability of NRI customers is determined on the basis of following factors:

  • Applicant's Age
  • Applicant's Income
  • Income of Co-applicant
  • Past Loan Repayment History of the Applicant
  • Applicant's Qualifications
  • Term of Loan
  • Number of Dependants on the Applicant
  • Applicant's Assets
  • Applicant's Liabilities
  • Continuity of Applicant's Employment/ Business

Punjab National Bank NRI Home Loan Documents Required

PointSalaried CustomersSelf Employed Customers
FormLoan Application form with photographLoan Application form with photograph
Processing fee chequeProcessing fee chequeProcessing fee cheque
Proof of IdentityCopy of first four pages of passport and page with visa stamp or IC/PIO cardCopy of first four pages of passport and page with visa stamp or IC/PIO card
Proof of AddressAddress proof mentioning the current overseas addressAddress proof mentioning the current overseas address
Proof of IncomeCopy of Salary certificate duly attested by Indian Embassy /Consulte /EmployerBalance Sheet and P&L Account for the past 3 years
Bank StatementLast 6 months bank statementsLast 6 months bank statements (self and business)
Employment ContractLast Salary certificate /slip in originalN.A.
Work PermitValid Work PermitN.A.
Other DocumentsCopy of Continuous Discharge Certificate, Details of previous employment, Copy of identity card issued by the current employerDetails about nature of business, year of establishment & type of organization

Property Related Documents

  • Registered Sale Deed /Registered Agreement for Sale
  • Occupancy Certificate (in case of ready to move property)
  • Approved Plan copy (Xerox Blueprint) & Registered Development agreement of the builder
  • Copy of the approved building plan /approvals in respect of proposed construction /purchase /extension
  • Detailed cost estimate /valuation report from Bank's Panel Chartered Engineer /Architect
  • Allotment letter of Co-operative Housing Society /Apartment Owners' Association /Housing Board /NOC from the Society /Association /Builders /Housing Board
  • Legal Scrutiny Report, EC for the past 13 years, Property Tax paid receipt, Khata and permission for mortgage, wherever necessary

Documents for Loan Disbursal

  • Loan Agreement
  • Repayment Instruments such as NACH/ Standing Instruction/ Post-dated cheques/ ECS Request
  • Signature Verification
  • Any other related documents for mortgage creation

Fees & Charges of Punjab National Bank NRI Home Loan

Type of ChargeAmount
Processing Fees0.35% of loan amount (minimum Rs 2,500 & maximum Rs 15,000)
Prepayment Charges for floating rate loanNil
Part-payment Charges for floating rate loanNil
Part prepayment Charges for fixed rate loanPart prepayment can be done after 6 months from date of first disbursement. One payment allowed every financial year. Can be upto 5% of outstanding loan.
Prepayment Charges for fixed rate loanupto 2% of the principal outstanding
Cheque bounce ChargesUpto Rs. 500 plus GST
Late payment ChargesUpto 3% per month
Cheque swap ChargesUpto Rs. 500 plus GST
Facility Statement ChargesUpto Rs. 500 plus GST ((nil for 1 statement every half yearly)
NOC Issuance ChargesUpto Rs. 500 plus GST (Nil for first NOC)
Penal Interest Rateupto 24% p.a.
Switching Fees (Base Rate/BPLR to MCLR)upto 0.50% on outstanding principal
Switching Fees (Floating Rate to Fixed Rate)upto 1% on outstanding principal
Switching Fees (Fixed Rate to Floating Rate)upto 2% on outstanding principal
Stamp duty for Loan agreement & mortgageAs per actual
Insurance PremiumAs per actual
Legal, repossession and incidental ChargesAs per actual
Creation of charge with ROCAs per actual
EMI cycle changeUpto Rs. 500 plus GST
Customer Credit Information Report(Credit Bureau)For Individual Customers Upto Rs. 200 per report & for Non Individual Customers Upto Rs.750 per report

Interest Rate on Punjab National Bank NRI Home Loan

Different banks offer NRI home loan at different interest rate to the borrowers. You must remember that interest is the major cost of your home loan which you need to pay on your outstanding loan amount till the end of your loan tenure. As the tenure of NRI Home Loan is the highest among all other types of loans, hence it is very essential and important to compare the NRI home loan interest rates offered by different banks before taking the most important decision of selection of the lender.

Punjab National Bank offers NRI Home Loan at the interest rate of 6.75 which is very attractive. One can even negotiate on interest rate provided he/ she carries good Credit Score, good relations with the lender, clean repayment history and regular income.

After you avail loan, you have to repay the loan along with interest in the form of Equated Monthly Instalment (EMI) every month till the tenure of the loan. The EMI comprises of the principal and interest components.

Salaried applicants are likely to get a slightly lower rate compared to the self-employed because of less risk involved.

If you have applied for home loan for under construction property, you have to pay interest on the portion of the loan which has been disbursed until final disbursement. This interest is called pre-EMI interest. It is payable every month from the date of each disbursement up to the date of commencement of EMI.

If you are currently paying higher interest rate on existing NRI home loan availed from any other bank than interest rate on NRI home loan offered by Punjab National Bank, you can opt for balance transfer of loan to Punjab National Bank.

Loan Amount for Punjab National Bank NRI Home Loan

You can apply for home loan upto 80% to 85% of the value of the house property which you will buy out of the loan amount.

Loan amount what you want to apply for, will depend upon following factors:

  • Your requirement of funds
  • Your income
  • Property Value
  • Your repayment capability

Punjab National Bank offers NRI Home Loan for a maximum of Rs. 50,00,000. (OR) Loan offered to the borrower is completely customised as per the requirement and the eligibility criteria of the customer.

You must know that it is not necessary that whatever loan amount you are applying for is easily extended to you by the bank. Bank will first calculate your eligibility for taking that loan amount during its loan approval process before making final decision on loan amount to be extended to you.

Loan Tenure for Punjab National Bank NRI Home Loan

Loan Tenure is a period for which you have availed the loan. You need to repay full loan and interest thereon during this period. Loan tenure also depends upon your age. Lower your age, higher loan tenure you can apply for .

There are chances that if you opt for a longer term, the interest rate offered will be on lower side.

Higher the tenure lower the EMI and vice-versa. Punjab National Bank offers NRI Home Loan for maximum tenure of 30 Years.

Other Important Points of Punjab National Bank NRI Home Loan

Security

  • Security for the loan is a first charge by way of an equitable mortgage of the property to be financed and/or such other collateral securities as may be deemed fit by PNB Housing.
  • Additional/ interim security may be required as acceptable to PNB Housing.

Insurance

  • PNB Housing, for the safety and extended comfort of its customers, suggests that they should get their property and loan repayments insured to overcome an unfortunate event during the re-payment term of the loan.
  • For the convenience of customers, PNB Housing has tied up with Bharti AXA and ICICI Lombard - to offer best-in-class products and services at their doorstep.

Loan Amount

  • Upto 75 lakhs: 80% of market value of the property
  • Above 75 lakhs: 75% of market value of the property
  • Loan eligibility shall be determined by PNB Housing taking into account income, age, qualification and occupation etc.
  • Income of borrower(s)/ co-borrower(s) may be clubbed together for calculation of loan eligibility

Margin Requirement

  • 20% of the total cost of the property (inclusive of stamp duty and registration charges in case of purchase of property or cost estimate in case of construction/ improvement of house). For purchase of land/plot for house building: 40%.

Punjab National Bank NRI Home Loan Disbursement

  • For purchase of ready possession properties, the loan amount will be released in lump sum in favour of the developer or the seller, as the case may be, after confirming that the customer has paid margin money i.e. his/ her own contribution. In case of ready-to-move-in property, the full and final disbursement of the loan is done in one go.
  • For purchase of house/ flat from an individual on resale, the loan amount will be paid in lump sum to the seller of the property at the time of transfer after confirming that the customer has paid margin money i.e. his/ her own contribution.
  • For under construction houses/ flats, the loan amount will be disbursed in stages based on the progress of construction. It is also known as part-disbursement. You will need to pay interest on the disbursed amount released in stages. Such interest is called the Pre-EMI which will continue until the final disbursement of the loan.
  • A customer has to invest his proportionate share of the cost, prior to disbursement of loan.
  • The NRI Home Loan will be disbursed either in lump sum or installments according to the requirement of the development authority/ society/ private builder.
  • Disbursement of NRI Home Loan will be made after technical appraisal of the property and after completion of all legal documentation of the property such as the NOC and title deed.
  • Disbursement of NRI Home Loan will be subject to the sanction letter's terms and conditions.

NRI Home Loan Balance Transfer

Home Loan Balance Transfer is a switch of the outstanding home loan account from existing lender to another new lender where better facilities are being offered by the new lender. In simple terms, it can be understood as "Availing a new home loan from another lender to repay an existing home loan". It saves cost of the borrowers.

When Should You Choose NRI Home Loan Balance Transfer?

  1. To take advantage of lower interest rate
  2. For improvement in servicing of home loan
  3. If you are in early stage of your home loan tenure
  4. Availability of more top up loan with balance transfer
  5. To obtain longer repayment tenure

Before opting for Balance Transfer of your NRI home loan, you must consider following points for sure:

  • What are the processing charges your new home loan?
  • How much is the outstanding loan amount?
  • How much difference in interest rate are you getting?
  • What is your current Credit Score?
  • What are the terms and conditions of new lender?