Interest rates on Punjab National Bank’s (PNB) home loan start at 8.50% per annum. The home loan interest rate applicable to you, the borrower, will depend on whether you are a salaried individual, a self-employed person, or an employee of a public sector firm. Moreover, if you choose to repay your loan before the end of the repayment tenure, you also have the option to do so by paying a minimal foreclosure charge.
The charges associated with a PNB home loan are as follows:
Processing Fee |
Up to 0.35% of the loan amount (inclusive of the minimum non-refundable amount of ₹2,500 which needs to be paid at the time of applying. Note that this amount can go as high as ₹15,000) |
Foreclosure Charges |
0 if the amount is paid from the borrower’s own pocket. 3% + GST if the amount is paid using a third-party source of funding or if the applicant is a non-individual entity. |
Penalty Interest Rate |
2% per month |
Change in interest rate system |
Changing from fixed to floating: 3% of the outstanding principal + 18% GST Reducing the applicable interest rate under the floating interest rate system: 0.5% of the principal outstanding + 18% GST |
Applicable fee if the Equated Monthly Instalment (EMI) is paid in cash or through cheque |
₹1,000 + 18% GST |
The following example will tell you exactly what your minimum and maximum EMI payment will be if your PNB home loan interest rate and repayment tenure is on either extremes of the spectrum.
Let us assume that you have taken a home loan online of ₹2,00,000 from PNB at an interest rate of 9.10% p.a and your loan repayment tenure is 5 years. On the other hand, your friend has availed the same amount, but the applicable interest rate to him is 6.75% p.a. and his loan repayment tenure is 30 years. Now, let us look at the applicable charges and the amount that will be paid by the both of you by the end of your respective tenures.
Processing fee |
Up to ₹700 (Up to 0.35% of the loan amount) |
Maximum and minimum EMI amounts |
In your case, you will have to pay an EMI of ₹4,161 every month |
Total amount payable |
You will have to pay a total of ₹2,49,683, whereas your friend will pay ₹4,66,990 over 30 years. |
PNB has several housing finance schemes available for Indians from all walks of life. The interest rates at which the loans under those schemes are offered as follows:
PNB Housing Loan Scheme Name |
Interest Rates |
PNB Gen-Next Housing Finance Scheme |
7.50% p.a. onwards |
PNB Housing Loan for Public |
7.50% p.a. onwards |
PNB Pride Housing Loan for Government Employees |
7.50% p.a. onwards |
PNB Max-Saver Housing Finance Scheme |
7.50% p.a. onwards |
The applicable PNB housing loan interest rates for salaried and self-employed individuals are as follows:
Applicant Type |
Interest Rate Range |
Salaried |
8.50% p.a. onwards |
Self-Employed |
8.55% p.a. onwards |
The interest rates at which PNB Housing Finance provides home loans to women and government employees are as follows:
Type of Applicant |
Interest Rates |
Women |
8.50% p.a. onwards |
Government Employees |
8.50% p.a. onwards |
A Home Loan Balance Transfer facility allows you to transfer your outstanding home loan balance to a different lender. You may want to consider this option so that you can take advantage of the lower interest rate which the other lender will offer you. However, before you go ahead and make the switch, you must check the applicable foreclosure and processing fees with both of your lenders. As of now, the PNB Home Loan Balance Transfer interest rate is 8.50% p. a.
The interest rates at which other leading lending institutions offer home loans are as follows:
Lender |
Interest Rate (per annum) |
PNB Housing Finance |
7.50% onwards |
Union Bank of India Limited |
7.40% onwards |
Bajaj Housing Finance Limited |
8.85% onwards |
ICICI Bank |
7.60% onwards |
Home First Finance Company (HFFC) Limited |
11.90% onwards |
The factors that could affect the your PNB Home Loan interest rate are as follows:
Your CIBIL score: A CIBIL score above 750 will get you a loan at a lower interest rate and vice-versa.
Your monthly income: Your monthly income determines your loan repayment capacity. Ideally, the higher your monthly remuneration, the lower your interest rate.
Your loan amount: Higher loan amounts would mean a higher home loan interest rate and vice-versa.
Your applicant category: If you are a self-employed person, you will be charged a higher interest rate as compared to what a salaried professional will be.
Relationship with your lender: If you have an account with the lending bank and have taken loans in the past which were repaid on time, you can get a home loan at a lower interest rate.
Down payment: If you have paid a considerable percentage of the property value upfront as down payment to the relevant authorities, you can get a PNB home loan for a lower interest rate.
PNB provides home loans of up to ₹25 lakhs at a rate of interest starting from 8.50% per annum. However, if you have a good credit profile, you can also negotiate a lower interest rate from the bank.
Yes, you can convert your home loan rate from fixed rate to floating rate as well as vice-versa.
The PNB housing loan interest rate starts at 8.50% p.a. for salaried applicants and 8.55% p.a. for self-employed applicants.
Yes, you can convert your home loan rate from fixed rate to floating rate as well as vice-versa.
PNB gives a concession of around 1% on home loan interest rates to its employees.
With part prepayments, you can repay your loan faster by significantly lowering the outstanding amount of your home loan.
With the PNB Home Loans, you can top up your loan at any point during the tenure.