PNB Plot Loan

One kind of credit that Punjab National Bank (PNB) and its subsidiary PNB Housing Finance provide is a PNB Plot Loan. This is to help individuals purchase land with the intention of building a home on it. It's essentially a loan for the purchase of a residential plot rather than a house or apartment.

As of January 4, 2024, PNB Housing's plot loan interest rates start at 9.50% per annum, but can vary based on your creditworthiness and loan tenure. 70-75% of the plot's market value can be financed through the loan. Your credit score plays a major role in determining your loan eligibility and interest rate. If you begin construction on the purchased land, you may be eligible for a lower interest rate on your loan. This is because lenders view borrowers who are committed to building a home as less risky.

PNB Plot Loan – Highlights

PNB Plot Loan Features and Benefits

PNB Plot Loans offers the following features and benefits to its borrowers:

• Access the loan easily through a vast network of branches across India.
• Get quick and convenient loan approvals, even with doorstep services available.
• Enjoy attractive interest rates to make borrowing more affordable.
• Choose a lengthy repayment tenure that fits your budget comfortably.
• Benefit from government subsidies to further reduce your interest burden.
• Manage your loan repayments hassle-free through online portals and services.
• Select from various repayment options to suit your individual financial circumstances.

PNB Plot Loan Interest Rates

PNB offers a floating rate of interest, starting at 9.50% p.a. Thus, interest rates can fluctuate based on changes in market conditions, benchmark rates, or other specified factors. 

The interest rate that the PNB offers based on the credit score of professionals and non-professionals with salaried and independent employment is shown in the following table:

PNB Plot loan Eligibility Criteria

Following are the eligibility criteria for both self-employed and salaried individuals:

• Salaried individuals with a steady income through employment.
• Self-employed individuals who own and operate their own businesses.
• Business owners who lead and manage an established business.
• Must be under 70 years old when the loan is fully repaid.
• Choose a loan term that aligns with your financial situation and repayment capabilities. The longer the term, the more you can borrow.
• The cost of your chosen plot plays a role in determining your loan eligibility, as per PNB Housing’s loan-to-value (LTV) policies.

PNB Plot loan Documents Required for Salaried

Following are the documents required for a salaried individual:

• Ready-to-Go Application: Submit your completed application form and a recent photograph.
• Proof of Age: Choose from valid options like a PAN card, a passport, or certified documents from authorised bodies.
• Verified Address: Prove your residence with documents like passport, driving licence, utility bills, government-issued cards, or certified documents.
• Educational Background: Attach a copy of your highest academic qualification.
• Recent Income Evidence: Provide your latest salary slips for the past 3 months.
• Tax Documentation: Include your Form 16 tax certificates for the last 2 years.
• Banking History: Share your bank statements for the past 6 months, reflecting your salary account activity.
• Processing Fee: Settle the processing fee with a cheque payable to PNB Housing Finance Ltd.
• Property Details: Furnish copies of the official land title documents and approved building plans.

PNB Plot loan Documents Required for Self Employed

Following are the documents required for a self-employed individual:

• Fill out the Application Form: Complete the form with all required details and attach a recent photograph.
• Age Verification: Present your PAN card, passport, or any other authorised document to confirm your age.
• Residence Proof: Select from valid options like passport, driving licence, utility bills, or government-issued cards to verify your address.
• Educational Background: Include a copy of your highest degree.
• Business Proof: Provide a certificate and documentation confirming your business existence, along with a business profile.
• Last 3 Years’ Tax Returns: Submit certified/audited copies of your personal and business income tax returns for the past three years, including profit and loss accounts and balance sheets.
• Last 12 Months’ Bank Statements: Share your personal and business bank statements from the past year.
• Cheque Payment: Settle the processing fee with a cheque payable to PNB Housing Finance Ltd.
• Documents & Plans: Furnish copies of the official property title documents, approved building plans, and any relevant additional documentation.

PNB Plot loan Fees and Charges

The Plot Loan entails various charges, including a processing fee equivalent to 1% of the loan amount. In the event of delayed EMIs, an interest rate of up to 24% per annum is applicable to the unpaid amount for the overdue period. Notably, there are no prepayment charges associated with the loan. Additionally, a nominal fee, capped at INR 500, is levied for obtaining a loan statement.