Punjab National Bank Home Loan Eligibility

Punjab National Bank is a prominent commercial bank in the country. The head office of the bank is in Delhi. The bank provides banking products like savings accounts, deposits, personal loans, and much more. Individuals looking to buy or construct a house property can also avail PNB Home Loan at attractive interest rates.

Investment in house property is a critical decision considering the magnitude of the amount involved. Availing a Home Loan needs thorough research to get the best deal since even a small variation in the interest would mean a considerable saving. Punjab National Bank offers various types of Home Loan to cater to the requirements of every category of customer. Punjab National Bank is an ideal destination for an economical Home Loan.

Punjab National Bank has stipulated eligibility criteria for availing the housing loan, which has to be complied with to qualify for the loan.

• The applicant should be an Indian Resident
• Individuals or joint owners can also apply for a PNB Home Loan
• Individuals employed with the State/Central Government, Employees of PSUs, reputed Companies, MNCs, self-employed individuals/professionals, businessmen, defense personnel, and paramilitary forces are eligible for the Home Loan. Different type of Home Loan for different employment statuses is designed to suit the requirements.
• To avail of Pradhan Mantri Awas Yojana (EWS & LIG) from Punjab National Bank, the Economically Weaker Section (EWS) should have an annual income of up to 3 Lakhs and a house size carpet area of up to 30 square meters. Whereas, the low-income group (LIG) should have an annual income above 3 Lakhs and up to 6 Lakhs and a house size of up to 60 square meters.
• To avail of Pradhan Mantri Awas Yojana (MIG), Middle Income Group 1 (MIG 1) should have an annual income above 6 Lakhs and up to 12 Lakhs and a house with carpet area of up to 160 square meters. Whereas, MIG 2 should have an annual income above 12 Lakhs and up to 18 Lakhs and a house size with a carpet area of up to 200 square meters.
• Salaried employees with a minimum of 3 years of work experience can avail of PNB Gen Next Housing Finance for the Public. Co-borrower should also be a working individual with a permanent salary. The primary borrower should be up to the age of 40 years and others up to the age of 45 years. The borrower should have a net salary of at least 35,000 per month.

The following are the features of the Punjab National Bank Home Loan:

The documents required for the loan are as below:

The following are the factors affecting Punjab National Bank home loan eligibility:

• Age of the applicant: The age of the applicant is one of the factors that come into consideration when deciding the repayment tenure. With the maximum repayment tenure, the EMI will be decided. The longer the repayment period, the lower will be the EMI amount. If the applicant is closer to the younger age, then he/she can choose a longer repayment period to accommodate the EMI as per the affordability.
• Credit Score: The credit score is an important criterion that will be the basis of the lender's credit decision. The credit score indicates the repayment pattern of the applicant and the creditworthiness. Hence, maintaining a good credit score is very critical if you have to get a Home Loan.
• Income: The loan quantum depends on the income of the applicant. The monthly income has to accommodate the mandatory monthly expenses along with the EMIs of existing commitments if any and also should provide for the EMI of the proposed loan. So, the eligibility for a Home Loan largely depends on the income of the applicant.
• Property value: The loan quantum will be a percentage of the market value of the asset that will be created out of the loan. An asset located in an area that has a good scope for value escalation is recommended if you have to avail a higher loan amount. The lender's credit decision is based on the potential liquidity value of the property.
• Status of employment: The employer you are working for is yet another important factor that decides the loan eligibility. If you are employed with Government Organisations, PSUs, and Multinational Companies and have sufficient work experience, the chances of getting a higher loan quantum will be bright.

The following are some of the tips to increase the Home Loan eligibility:

• Building a good debt-to-income ratio is very essential if you are looking for a higher loan amount. For this, you will have to clear the existing debts before applying for the Home Loan to lessen your existing commitments. The debt-to-income ratio is arrived at by considering the existing commitments that have to be provided for with your monthly income and also the proposed EMI.
• Declare the other sources of income like dividends, fixed deposit interest, rental income, etc. which will be considered to arrive at the eligible loan amount.
• Avail the loan jointly with family members like spouses, children, and parents who have a stable income and a good credit score to enhance the eligible quantum.
• Choose a longer repayment period. The payable interest amount will be higher, but the EMI amount will be lower and can be easily provided for from your monthly income without feeling the financial stress.
• A property located in a place where the market value is constantly appreciating will fetch you a higher loan amount. The choice of your property location also impacts the eligibility.
• The interest outgo towards the loan will be very high if the loan amount is repaid in a tenure of 30 years. The investment in house property is huge and requires funding from a lending institution for most of us. However, it is advisable to keep the loan amount to the extent of the margin that has to be paid after summing up all the funds available from various sources. By limiting the amount, you can choose to pay the loan in a shorter tenure, thus reducing the interest outgo towards the loan.

Using an EMI Calculator before applying for a Home Loan has the following benefits:

• With the EMI Calculator, you will able to arrive at the EMI with different variables like interest, loan amount, and tenure. You can try different combinations and short-list the best offer that suits your budget. The EMI Calculator will give an idea of the amount that has to be provided from your monthly income towards the Home Loan.
• With the EMI Calculator, you will even get an idea of the interest you will be paying over some time for the loan amount you are availing.
• With the EMI Calculator, you will be able to assess the amount of loan you are eligible for and you can enter the exact amount while applying for the loan which will save time and will expedite the approval process.
• By assessing the eligible amount using the EMI Calculator, you will be able to go in for a project that fits into the budget.

The EMI constitutes both the interest and the principal component. The EMI value will be constant, but the adjustment of the interest and principal component vary as the tenure progresses. Initially, a higher amount will be adjusted towards the interest component which will reduce as the tenure progresses. Similarly, the adjustment towards the principal component will be lower initially which will increase as the tenure progresses.