PNB Baghban
| Particular | Details |
|---|---|
| Scheme Name | PNB Baghban |
| Nature of Scheme | Reverse Mortgage |
| Target Beneficiaries | House-owning senior citizens |
| Objective | To address the financial needs of senior citizens owning self-occupied residential property |
| Purpose | To generate income/supplement pension or other income for day-to-day requirements |
| Minimum Age | 60 years |
| Residence | Applicant must be a resident of India |
| Property | Residential house/flat |
| Property Ownership | Single name or jointly with spouse |
| Joint Applicant Condition | One spouse must be at least 60 years and the other at least 58 years |
| Property Title | Clear title in applicant’s/spouses’ name |
| Maximum Qualifying Loan Amount | ₹1 crore including interest |
| Margin on Property Value | 20% |
| Medical Lump-Sum Facility | Up to ₹15 lakh |
| Payment Method | Regular fixed monthly payments |
| Calculation Basis | Reverse Annuity basis |
| Maximum Tenor | Up to 20 years, as per applicable conditions |
| Security | Equitable mortgage of residential property |
| Property Residual Life | At least 20 years |
| Repayment | Becomes due 6 months after death of the last surviving spouse |
| Prepayment | Allowed at any time |
| Interest Rate | As per PNB’s applicable rate |
| Processing/Upfront Fee | As per applicable PNB charges |
| Documentation Charges | As per applicable PNB charges |
1. Eligibility Criteria
| Eligibility Condition | Requirement |
|---|---|
| Age | 60 years and above |
| Citizenship/Residence | Resident of India |
| Property Ownership | Must own a residential house/flat |
| Property Use | Self-occupied residential property |
| Ownership | Single name or jointly with spouse |
| Joint Ownership | One spouse ≥60 years and other spouse ≥58 years |
| Title | Clear title must be in the name of applicant(s) |
| Property Life | Residual life should be at least 20 years |
The scheme is therefore different from a normal personal loan. The senior citizen’s house is used as the security for obtaining a regular stream of payments.
2. Purpose of PNB Baghban
The main purpose is to provide a regular source of income to senior citizens who own a house but may need additional funds for their living expenses.
| Purpose | Details |
|---|---|
| Supplement pension | Yes |
| Supplement other income | Yes |
| Day-to-day expenses | Yes |
| Generate regular income | Yes |
| Medical treatment | Special lump-sum facility available |
PNB specifically states that the scheme is intended for generating income or supplementing pension/other income for day-to-day requirements.
3. Maximum Loan / Property Value
PNB applies a 20% margin to the realizable value of the residential property.
| Particular | Details |
|---|---|
| Property valuation basis | Realizable value |
| Margin | 20% |
| Maximum qualifying amount | ₹100 lakh (₹1 crore) |
| Maximum amount including interest | ₹1 crore |
The maximum qualifying amount of the loan along with accumulated interest is restricted to ₹1 crore.
4. Special Lump-Sum Medical Payment
One important feature of PNB Baghban is the provision for a lump-sum payment for medical treatment.
| Particular | Limit |
|---|---|
| Medical treatment of senior citizen borrower | Eligible |
| Medical treatment of spouse | Eligible |
| Medical treatment of dependent(s) | Eligible |
| Maximum lump-sum amount | ₹15 lakh |
PNB states that lump-sum payment is permitted only for medical treatment of the senior citizen borrower, spouse and dependants, subject to the ₹15 lakh ceiling.
5. How the Monthly Payment Works
The amount is not given as a conventional lump-sum personal loan. Instead, PNB provides regular fixed monthly payments calculated on a Reverse Annuity basis.
The PNB page gives the following indicative monthly payment per ₹1 lakh for different loan tenors:
| Tenor | Monthly Payment per ₹1 lakh |
|---|---|
| 10 years | ₹501 |
| 11 years | ₹431 |
| 12 years | ₹373 |
| 13 years | ₹326 |
| 14 years | ₹286 |
| 15 years | ₹251 |
| 16 years | ₹222 |
| 17 years | ₹197 |
| 18 years | ₹175 |
| 19 years | ₹156 |
| 20 years | ₹140 |
PNB notes that these amounts are subject to change due to changes in RLLR/ROI.
6. Example of Monthly Payment
Based on PNB’s published table:
If the qualifying amount is ₹10 lakh and the selected tenor is 15 years:
₹251 × 10 = ₹2,510 per month
Similarly, for ₹20 lakh at 15 years:
₹251 × 20 = ₹5,020 per month
These are based on PNB’s published indicative table and can change with the applicable rate.
7. Security
| Security | Requirement |
|---|---|
| Type of Security | Equitable Mortgage |
| Property Mortgaged | Residential property |
| In whose favour | Punjab National Bank |
| Minimum residual property life | 20 years |
The residential property is mortgaged to PNB as security for the reverse mortgage facility.
8. What Happens After the Death of the Borrowers?
This is one of the most important aspects of the scheme.
| Situation | What happens |
|---|---|
| One spouse dies | Surviving spouse can continue under the applicable arrangement |
| Last surviving spouse dies | Loan becomes due for recovery |
| Time allowed to legal heirs | 6 months |
| Legal heirs’ option | Repay loan + accumulated interest and retain the property |
| If loan is not settled | Bank can proceed for recovery as per the scheme/legal process |
PNB specifically states that the legal heirs have the option to settle the loan together with accumulated interest without sale of the property. The loan becomes due and payable six months after the death of the last surviving spouse.
9. Prepayment
| Particular | Details |
|---|---|
| Can borrower prepay? | Yes |
| When? | At any time during the currency of the loan or later |