PNB Housing Finance, the housing finance division of the state-owned lender i.e. Punjab National Bank, is a strong player in the home loan and loan against property segments. While it offers home loans to help you buy a dream house, the housing finance major also gives you a loan against property to serve all your personal and business needs. You can get a maximum of 30 years and 20 years to repay home loans and loan against property, respectively. The loan comes at an interest rate greatly determined on the basis of the quantum of finance. The rate is also determined on the basis of profession one is involved in. So, what is the PNB Housing Finance Rate of Interest for home loan and loan against property? Let’s check out the rate in this article and see how it shapes your repayment.
PNB Housing Finance Home Loan Interest Rate 2019 The housing finance major offers a home loan up to ₹35 lakh to salaried and self-employed professionals at an interest rate of 9.05%-11.25% per annum. Businessmen or self-employed non-professionals need to service the same loan at 9.15%-12.50% per annum. Loans more than ₹35 lakh-75 lakh come at 9.10%-11.25% p.a. Businessmen or self-employed non-professionals, on the other hand, need to pay interest at 9.20%-12.50% for the same loan quantum. As the loan exceeds ₹75 lakh, the rate of interest for salaried/self-employed professionals and businessmen/self-employed non-professionals is 9.20%-11.25% and 9.30%-12.50% per annum, respectively. PNB Housing Finance Loan Against Property Interest Rate 2019 PNB Housing Finance rate of interest for loan against property is determined on the kind of property that is mortgaged. Loan against commercial and residential property is granted at 10.50%-11.10% and 10.25%-11% per annum, respectively. The loan can also be granted against the residential or commercial plot. You need to pay interest at 11.25%-12% per annum. PNB Housing Finance Rate of Interest Varies as Per Prevailing Market Conditions The rate of interest for both home loan and loan against property is floating in nature. It means the interest rate won’t remain the same throughout the loan tenure. It will keep changing based on the variation in market forces. PNB Housing Finance would increase or decrease the rate based on its cost of funds and the overall liquidity situation. Does the Variation in Rate Mean Change in EMI from Time to Time? Certainly not. The rate of interest won’t change the EMI amount. Instead, it will bring a change in the portion of principal and interest on a periodical basis. As the rate of interest falls, the housing finance will deduct more on the principal and less on interest. When the rate goes up, the interest portion will be deducted more. Does It Make Sense to Prepay Such Long-term Loans? The loan, when continued for long, can chuck out a lot of interest from your pocket compared to when they are for a shorter period. The housing finance major would most likely give you the loan statement to your email ID on a periodical basis. You can thus check the statement carefully and see what can be done to stem the flow of interest. One thing that you can think of is prepaying the loan. You can either pay the loan fully or partially to reduce the interest burden. For full payment, you need to start a lot early and save regularly to accumulate the desired surplus. On the other hand, you can pay a chunk of the outstanding balance using the money received through the bonus. Both part and full payment ease the interest repayment burden off your shoulders.
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Anika Sharma
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