Punjab National Bank (PNB) provides home loans at affordable interest rates for a tenure of up to 30 years. The bank uses a set of criteria to determine the eligibility of an individual for a home loan offer. PNB offers home loans to applicants with a stable source of income and a decent credit score.
Before you apply for a PNB home loan, it is important to be aware of all the criteria that influence the chances of approval of your loan application. We are listing down the criteria used by the Punjab National Bank to determine the eligibility of an applicant for a home loan:
Nationality: The applicant must be a citizen of India.
Age: The applicant must be between 21 and 65 years of age to be eligible for a home loan from PNB. Also, the age of the applicant must not exceed 70 years at the time of maturity of the loan.
Salary and Employment: In order to be eligible for a home loan from PNB, the applicant must have a regular source of income. The applicant can be either salaried or self-employed and must have an employment history of at least 3 years (for salaried applicants) or 5 years (for self-employed applicants).
Credit Score: As is the case with most other loans, PNB grants home loans to applicants with stable credit history and at least a decent credit score- preferably 750 or above.
Loan to Value Ratio (LTV): It refers to the ratio of the amount of loan granted to the value of the property for which the loan is availed. LTV is often expressed in percentage. PNB offers an LTV of up to 85%, which means, an amount equal to up to 85% of the property value can be availed as home loan from the bank.
PNB uses a set of metrics to determine the eligibility of an applicant for a home loan offer. Some of the factors that impact the eligibility of a borrower for a home loan include their monthly income, credit score, age and other financial obligations.
The salary of a loan applicant is one of the key determinants of the amount of home loan the applicant is eligible for. The following table provides an estimate of the loan amount an applicant is eligible for based on their monthly salary taking into consideration a repayment tenure of 30 years and an interest rate of 6.80% per annum
Monthly Income of the Applicant |
Loan Amount |
₹25,000 |
₹15,33,918 |
₹30,000 |
₹20,70,790 |
₹35,000 |
₹24,15,921 |
₹45,000 |
₹31,06,185 |
₹50,000 |
₹34,51,316 |
₹55,000 |
₹42,18,275 |
₹60,000 |
₹46,01,755 |
₹65,000 |
₹49,85,235 |
₹70,000 |
₹53,68,714 |
₹75,000 |
₹57,2,194 |
Since the repayment tenure of a home loan can go up to 30 years, the age of the applicant impacts the tenure of the home loan- the time during which the borrower is supposed to pay back the entire loan amount along with the applicable interest. The younger the borrower, the more time they have to pay back the loan. The table below gives an estimate of the age of the applicant and the maximum loan tenure they are eligible for:
Age of the Applicant |
Maximum Eligible tenure |
21 years to 30 years |
30 years |
31 years |
29 years |
32 years |
28 years |
33 years |
27 years |
34 years |
26 years |
35 years |
25 years |
36 years |
24 years |
37 years |
23 years |
38 years |
22 years |
39 years |
21 years |
40 years |
20 years |
41 years |
19 years |
42 years |
18 years |
43 years |
17 years |
44 years |
16 years |
45 years |
15 years |
The amount of home loan granted by PNB also depends upon the LTV (Loan to Value) ratio of the property for the loan is issued. The LTV of a property, and therefore the loan amount, depends upon the value of the property. The following table gives you an idea of the LTV ratio that you can expect for a given loan amount:
Loan Amount |
LTV Ratio |
Up to ₹30 Lakhs |
80% to 85% |
Between ₹30 Lakhs to ₹75 Lakhs |
80% |
Loans above ₹75 Lakhs |
75% |
The eligibility criteria for house loans is the same for all applicants irrespective of their gender. However, female applicants get a concession of 0.5% on the interest rate applicable on the principal amount.
Credit score is considered to be a standard and reliable way of assessing the creditworthiness of a borrower. In order to ensure that you meet the eligibility criteria for a home loan from PNB, you must have a CIBIL score of at least 650. The bank, however, would always prefer borrowers with a score upwards of 750.
There are a number of factors that play a part in whether the loan application gets approved as well as how much loan amount will be sanctioned. Hence, it is best to be aware of these factors beforehand:
Salary: This factor of salary plays a part in PNB housing loan eligibility since the applicant’s net income essentially determines his or her repayment capacity after meeting essential expenses.
Employment Status: Similarly, the applicant’s employment status also has an essential influence since it means that they have a stable source of income and are, therefore, in a better position to efficiently pay off the entire Home Loan amount.
Financial Obligations: Lastly, most established financial institutions such as Punjab National Bank expect its loan applicants to not have too many pending debts and other serious financial obligations hanging over their heads. Hence, your financial history and current obligations also affect your loan approval chances.
The borrower must be:
- An Indian citizen
- Between 21 and 70 years of age
- Employed with a stable source of income (salaried or self-employed)
- Having a credit score of 650 or above.
The exact Home Loan amount disbursed depends on the salary as well as various other factors such as age, credit history, and financial obligations. You can use the Home Loan eligibility calculator to get a better idea of the Home Loan amount you might be eligible for.
The minimum salary required to meet PNB housing loan eligibility is Rs 18,000 per month.