Are You Eligible for PNB Housing Loan?

Gone are the days when people used to wait till their 40s and 50s until they accumulated enough money to buy their dream homes. Today, one can be a proud owner of a home in their 20s. Thanks to Housing Loan! All that one needs to do is prudently choose a lender that offers the Best Home Loan Deals besides flexibility in loan repayment.

PNB Housing Home Loan is one of the most popular products in this segment. It is offered by PNB Housing Finance Limited (PNBHFL), a 30 years old public sector housing finance company (HFC), promoted by Punjab National Bank. Registered with National Housing Bank (NHB), the regulation authority of India, this bank has been rated CARE AAA for bank loans long term.

However, before choosing this option, there might be a question in your mind – Are you eligible for PNB Housing Loan?

Check your eligibility visiting the bank’s official website. Alternatively, you may visit mymoneymantra, a one-stop leading trusted online financial services marketplace that hosts all leading banks and their Home Loan products. Using their easy-to-use tools you can check your PNB Housing Loan eligibility in seconds. You may contact experts from this platform for a customized solution on eligibility and the application process. Experts will guide you according to your requirements throughout the loan application and disbursal process.

PNB Housing Loan eligibility is based on the following factors

Age Factor

The applicant should be aged between 18 years and 70 years at loan maturity. The applicant’s age is considered into account when determining the tenure for repayment. Furthermore, it is the tenure that will determine the EMI. Younger the age of the applicant, longer the tenure and lower the EMI (equated monthly instalment). Older the applicant, shorter the tenure and higher is the EMI.

A younger applicant faces lesser financial burden on EMI compared to an older individual. The interest rate depends on the tenure chosen. With a longer tenure for repayment, the borrower ends up paying higher interest until loan maturity. The longer the loan repayment duration, higher is the interest paid and vice versa.

Nature and Size of Income

Are you salaried or self employed? Irrespective of whether you are salaried or self employed, your monthly income will be the determining factor for your repayment capability of your PNB Housing Loan in EMIs. Regular source of income is mandatory.

At the time of applying, you will have to submit proof of the stability of your income. If salaried, PNBHFL will check salary slips of the last 3 months, Form 16 for the last 2 years, and last 6 month’s bank statement that contains detail of salary withdrawn. For self-employed individuals, the lender will consider the applicant’s last 12 month’s bank account statement detailing for self and business. The applicant will also have to furnish last 3 years Income Tax returns (self and business) with Profit and Loss account and Balance Sheets duly audited by a Chartered Accountant.

Financial Liabilities

Do you have prior loan commitments? PNBHFL will consider your surplus income after your other financial commitments are met. Based on this surplus income, your EMI will be determined. Your other loan liabilities will thus have a bearing on your eligibility.

Higher your income, higher is your chance of an approval. With lesser financial liabilities, you stand at a greater chance of your loan being approved.

Your Credit Report

Have you checked your credit score? The lender will judge your repayment health score based on your credit report. You should have a credit score of 700 or above. A score of 800 or above is considered excellent. Your credit report reflects your creditworthiness. It contains your past transaction records, especially borrowing and repayment – borrowing history, how you repay, timely repayment factor, etc. It also enlists money you owe if any, if you have defaulted a payment, and related paraphernalia. A bad repayment record leads to a bad score. And a bad score may lead to rejection of your PNB Housing Loan application.

Regulatory Guidelines

National Housing Bank (NHB), the regulation authority of India has laid down restrictions on the maximum loan amount as a percentage of the home cost. PNBHFL follows NHB regulatory guidelines when lending finance for housing. The restriction varies slightly on the basis of the property cost. If you apply for lower cost homes, you may be eligible for a higher limit and vice-versa.

If you feel the above factors lower your chances of loan eligibility, you can adopt measures to improve it to avoid a rejection. Banks consider your potential to repay the future loan. How can you increase your PNB housing loan eligibility? Consider the following factors:

Adding a Co-Applicant

If your spouse has a steady source of income, you can add him or her as a co-applicant to enhance your eligibility of PNB Housing Loan. Other family members can also be co-applicants. Banks have allowed only a few specified relations to be co-applicants – husband and wife, father and son, unmarried daughter and father, brother and brother. The lender will consider the joint applicant’s income while determining the loan eligibility.

Closing Other Loans

If you have a capacity to prepay your other loans, consider closing them immediately. This will relieve you of the burden of other financial liabilities when applying for PNB Housing Loan. Your monthly savings will go up. Besides, you will have a larger surplus available for home loan repayment in EMIs. This will help increase your eligibility.

PNB Housing offers loans for purchase, construction and extension of dwelling units. The bank also offers customized home loan solutions to the advantage of the applicants. With a track record of providing the best services, this bank is in the good books of thousands of borrowers who have availed home loan through simplified procedures.

Also Read: Planning to Buy a House? Here Are Some Tips to Plan Your Finances

Home loans have become the norm to own a house today. The demand for Housing Loan is only increasing by the day leading to skyscrapers dotting the skyline of the outskirts of many a happening city. Eligibility is a big factor is getting a home loan approved. Lenders consider the applicant’s income and current liabilities in particular when sanctioning a loan. Consider all aforementioned factors and project yourself as an eligible applicant! Own your dream home and add wings to your happiness!

For best Housing Finance offers, you may visit mymoneymantra, a leading online lending marketplace having over 25 years of experience in providing financial services. Speak to our Mortgage Specialists toll-free at 18001034004 for more information.