PNB myProperty Loan

Loan Purpose

  • For all lawful purposes; specific purpose must be disclosed.
  • Loan not granted for:
    • Investment in real estate business.
    • Speculative purposes (e.g., stocks, shares, securities, commodities, bullion).

Eligibility

  • Individual and joint owners eligible, with immovable property for mortgage and sufficient income for repayment.
  • Loan can also be granted to sole proprietors in personal capacity against property owned by the proprietorship firm.

Income Criteria

  • Salaried: Minimum net monthly salary of ₹25,000.
  • Self-Employed: Minimum net annual income of ₹3,00,000 for the last 3 years.
    • Note: Depreciation can be added back to calculate net income for self-employed individuals.
  • Common for both categories:
    • Income from spouse, children, or parent can be included for EMI calculation; must be co-borrowers (max two).
    • Joint owners’ income can also be considered; maximum of two co-borrowers allowed.
    • Regular income (including rental) must be substantiated by proof (e.g., latest IT return, salary slip, bank statement).

Nature of Facility

  • Term Loan: Maximum 15 years.
  • Overdraft: Monthly reducing Drawing Power (DP) for 15 years, subject to annual review.
  • Accounts opened with Scheme Codes in CBS:
    • Term Loan: TLPIP
    • Overdraft: ODIPR
  • DP reduction automated in CBS, based on EMI principal component.

Loan Amount

  • Minimum: ₹2 lakh
  • Maximum: ₹1000 lakh

Loaning Powers

  • Segment Head Scale III can sanction up to ₹80 lakh
  • Segment Head Scale IV, PLP Head Scale IV, and PLP Head Scale V can sanction up to ₹100 lakh each.
  • All Proposals above Rs. 100.00 lakh at PLP level shall be sanctioned by PLPCAC
  • PLP CAC headed by Chief Manager can sanction upto Rs.400 lakh.
  • PLP CAC headed by AGM can sanction upto Rs.500 lakh.
  • For Loan above Rs. 500.00 lakh to Rs. 1000 lakh: HOCAC-I shall be the sanctioning authority

Internal Risk Rating

  • PNB Score is mandatory for loan approval.
    • Rating must be above 50 for automatic approval.
    • Scores between 40 and 50 may be considered with justification by higher authority.

Assessment of Limit

  • Maximum Limit:
    • 65% of realizable value of the property.
    • Repayment capacity assessed based on salary certificate or average gross monthly income from last three years’ ITRs.
  • Repayment Cap (maximum permissible deduction):
    • Income Up to ₹1 lakh: 60% of gross monthly income.
    • Income Above ₹1 lakh: 70% of gross monthly income.

Repayment Period

  • Overdraft: Liquidation in 15 years or up to age 70, whichever is earlier.
  • Term Loan: Maximum 180 EMIs or up to age 70, whichever is earlier.
  • Repayment tenure may vary based on co-borrower’s age, maximum up to age 70.

Renewal/Review

  • Overdraft facilities reviewed every three years based on simplified formats; no additional documents required.

Restoration of Limit

  • Restoration/enhancement of limit considered after 36 months, subject to satisfactory account conduct.
  • Fresh repayment period may be allowed, up to 180 months.

Security

  • Loans against equitable/registered mortgage of self-occupied residential, commercial, or industrial property with a minimum residual life of 25 years.
  • For partly rented properties, financing allowed only for self-occupied portion.
  • No loans for vacant plots, leased property, agricultural land, or third-party property, except:
    • Against properties leased by government agencies, with conditions for mortgage and lease period exceeding loan tenure.