Punjab national bank is only bank to offer affordable interest rates on the home loan. You can get your loan approved within hours if you have the right credit and past pre-payments history. There are only some minimal documents required to process the loan. Let’s have a look at the interest rates on PNB home loan and checkout if there are any hidden charges or processing fees for the same?
Punjab National Bank Housing Loan Interest Rate:
There are different types of home loans offered to different categories of people in India. Since Punjab national bank is one of the leading government banks of India. They are providing this scheme as well. However, we will not be going into detail. The interest rates on Punjab national bank home loans starts from 8.50% and ends at 10.50%. It depends upon the tenure and which category you fall in.
Apart from the interest rates, the processing fees for getting the loan approved is something near about 0.50% or Rs 20000 at maximum. The loan tenure can be up to 30 Years. Apart from these, there is no hidden charges or pre-closure charges on PNB home loan.
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A few things to keep in mind concerning PNB Home Loan interest rates are:
- The interest rates charged on home loans are pegged to 1 Year bank MCLR, which is something near about 8.45%.
- The floating interest rate applicable to women only. The owner of the property and everything should be the women only to have the benefit.
- The special PNB pride interests are for only government employees.
- PNB Max Power scheme usually for senior citizens but you can also apply for it.
- You can take some more credit. In case if you are looking to plant a solar light system.
Factors Affecting PNB Home Loan Interest Rates
There are some factors which affect housing loan interests. The factors are:
- Applicant’s salary: Your monthly and annual income plays a vital role in affecting the interest rates of housing loan. However, banks are more willing to lend credit to those individuals who have a higher salary.
- Loan amount: The loan amount plays the other important role in affecting interest rates on the home loan from PNB. It is evident if you have taken more credit and time for the re-payment. You’ll be charged more interest during the tenure.
Tips to Reduce the Interest on Your PNB Home Loan
We have explained the factors above, which affects the interest rates on housing loans most. Let’s have a look at some tips from us, which will help you to reduce the interest rate on the home loan. The tips are:
- Shorter Tenure: We know that the longer tenure we will choose, the lesser interest rates. However, if you select the shorter tenure, the interest rates will be high, but if you compared it with the end-up year. The actual interest rates you paid on shorter tenure will be less than longer tenure.
- Increased EMI’s: Bank always ask the customer to opt for more extended tenure period. However, you’ll end up by paying more interest. If you can afford to pay more EMI’s, then I’ll suggest better to choose the more EMI option than longer tenure.
- Make part pre-payments: If there is an option with your bank to deposit a partial amount, then make some partial amount deposit on the bank. In this way, your loan credit started decreasing and hence the interest as well.
Everyone dreams of having their own smart home. However, not everyone has the right amount of cash every time to purchase the property. Therefore, the banks come to the mind, and it is the only option to have financial support. If you are looking for the same option? Then in this post, we have mentioned the interest rates charged on Punjab national bank home loans. You can check it out, and if you think you are eligible for this, then you can apply.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.