FAQs

Supreme Court has pronounced a judgement in March 2021 wherein it has directed that compound / penal interest charged on loans during the moratorium period be refunded. Accordingly RBI directed financial institutions to refund difference between compound and simple interest charged on loan accounts which availed moratorium period of March 2020 to August 2020. Indian Banks Association (IBA) laid down the detailed guidelines in April 21 which are to be followed by institutions.

As part of the COVID-19 package announced by RBI in March 2020 (and extended in May
2020), customers who had a loan outstanding as on 29th February 2020 which was less than 90 DPD as on 29th February 2020 were given a relief of one time moratorium of repayment for a cumulative period of6 months i.e. from March 2020 to August 2020. During the moratorium period, the customers were exempt from making any payment to the lender. During moratorium, the lenders compounded the interest due on a monthly basis. Thus, the loan outstanding at the end of moratorium period included the outstanding principal at the beginning of the moratorium and the compound interest thereon for the months for which moratorium was availed, termed as “Interest on Interest”- difference between the simple interest and the compound interest charged during moratorium period.

PNBHFL had also compounded the interest for the moratorium period for the customers who availed the moratorium. Accordingly the Interest on interest will be refunded.

All “standard accounts” have to be given the benefit of relief. The determination date for this purpose is 29th Feb., 2020. That is, the days past due (DPD) status should be less than 90 DPD as on 29.02.2020 (“Eligible Accounts”).
Accounts not eligible for Relief under RBI Circular:

• Accounts classified as NPA as on 29 February 2020 ;
• Loan facilities which were charged with simple interest ;
• Accounts already refunded interest on interest under ex-gratia scheme of Nov’20* ;

Thus,

• Refund will now be given in those loan accounts (standard as on 29.02.2020) which were left out in the Ex-Gratia 1 scheme of Oct-Nov 2020. This will include ;
  • All Loans* (standard as on 29.02.2020) where the exposure (disbursement) was > INR 2 crore.
  • All Loans* (standard as on 29.02.2020) where the exposure (disbursement) was<= INR 2 crore but the market exposure (basis CIBIL) was > INR 2crores.

  * Both retail and corporate finance loans will be eligible

• Loans irrespective of whether they availed the moratorium or not will be eligible. However, interest on interest is to be refunded only if it was charged. Not applicable on PNBHFL since no interest on interest was charged in such cases.

Yes, As loan was standard (not a NPA) on 29/02/2020 and had availed the moratorium, it will be eligible for refund of interest on interest irrespective of the fact that it became a NPA later on.

The refund of interest on interest is available to the Borrower under RBI Circular, irrespective whether the moratorium has been availed or not by such Customer. However, as per the detailed guidelines of IBA, the interest on interest is to be refunded only if it has been charged.

PNBHFL does not charge compound interest on normal loans. Thus, no interest on interest was charged on loans which did not avail the moratorium. Hence, no refund is due on such accounts.

During moratorium period, charging of penal interest was suspended in all PNBHFL loan accounts for the moratorium period. Accordingly, no refund /waiver will be processed.

• The calculation of interest on interest has been done on daily balance. Any subsequent disbursement/ prepayment made during the moratorium period has been considered for calculation.
• Actual interest rate prevailing as on a specific date has been considered for calculating interest on interest. Any change of rate taken place during moratorium period has been considered.
• The interest on interest will be refunded only to the extent that it has been charged. For partial moratorium cases (customers who took moratorium for less than 6 months) and for the foreclosed cases (paid off during moratorium period), the interest on interest will be refunded only for the period of moratorium when the compound interest was charged and the loan was live.

In case of Live loan account, the benefit amount will be given in the form of pre-payment by adjusting the differential amount with the future payables by the borrower.

In case of Closed loan account, the benefit amount shall be refunded in the form of remittance to the borrower’s repayment account as updated in our records.

The purpose of this framework announced on May 5, 2021 vide respective RBI circulars, is to provide relief to individuals, small businesses and entities registered as MSME whose operations have been adversely affected by the second wave of Covid-19 pandemic followed by lockdown in most of the states.

a) Individuals who have availed of personal loans, and which include loans given for creation/enhancement of immovable assets (e.g., housing, etc.).

b) Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than Rs.50 crore as on March 31, 2021.

c) Small businesses, including those engaged in retail and wholesale trade, other than those classified as micro, small and medium enterprises as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than Rs.50 crore as on March 31, 2021.

Provided further that the credit facilities / investment exposure to the borrower was classified as standard as on March 31, 2021.

No, the borrower accounts which were restructured earlier will not be covered under the resolution 2.0. However, if the restructuring plan implemented under resolution 1.0 for personal loans, permitted no moratorium/moratorium of less than 2 years, the said account can be restructured under this scheme provided the overall moratorium allowed/tenor extended shall not be more than 2 years.

The overall caps on moratorium and / or extension of residual tenor granted under Resolution Framework – 1.0 and this framework combined, shall be two years.

The resolution plans may include rescheduling of payments, conversion of any interest accrued, or to be accrued, into another credit facility, additional term facility or, granting of moratorium, based on an assessment of income streams of the borrower, subject to a maximum of two year term.

a. Micro, Small or Medium Enterprise as on March 31, 2021 in terms of the Gazette Notification S.O. 2119 (E) dated June 26, 2020.

b. The borrowing entity is GST-registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt from GST-registration to be determined on the basis of exemption limit obtaining as on March 31, 2021.

c. The aggregate exposure, including non-fund based facilities, of all lending institutions such borrowers does not exceed INR 50 crore as on March 31, 2021.

d. The borrower’s account was a ‘standard asset’ as on March 31, 2021. The borrower’s account was not restructured in terms of the circulars DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020; DOR.No.BP.BC.34/21. 04.048/2019-20 dated February 11, 2020; or DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019 (collectively referred to as MSME restructuring circulars) or the circular DOR.No.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 on “Resolution Framework for COVID-19-related Stress.”

The resolution plans may include rescheduling of payments, conversion of any interest accrued, or to be accrued, into another credit facility, additional term facility or, granting of moratorium, based on an assessment of income streams of the borrower via ITRs, GST returns bank statements and any other document submitted by the customer.

The request under this scheme shall be invoked by 30th September, 2021 and the same should implemented within 90 days of invocation.

The eligible borrowers (as permitted by RBI) should have been impacted by COVID-19, impacting their ability to service the loan in time, indicatively due to loss of job or decline in source of income, disruption in business activity and loss of revenue for self-employed customers etc.

With respect to above, the following documents will be required for evaluating the restructuring proposal:

a. Request Letter from customer (to be signed by all applicants)

b. KYC documents of the applicants (Self attested)

c. Latest salary slips for salaried customers (last 3 months)/proof of job loss or pay cut

d. ITRs and financials along with required annexures for FY 2019-20 & FY 2020-21 (if ITRs filed)

e. Latest GST returns for self-employed customers for last 12 months

f. Last 1 years’ bank statement of salary/operating business account

g. Any other documents / information as required by the Company during the credit appraisal process

As per regulatory guidelines, loan/credit facility will be reported to the credit bureau as “Restructured due to COVID-19”.

Please note that as per regulatory guidelines, restructuring has to be reported at a Borrower level to the credit bureaus and hence all the facilities / loans of the borrower with the bank will be classified and reported as “Restructured” even if the borrower has taken restructuring for only one loan.

As clarified in Question #6 above restructuring may include rescheduling of payments, conversion of any interest accrued, or to be accrued, into another credit facility, additional term facility or, granting of moratorium each of which has additional cost implication.

No, A single application form will suffice the restructuring request depending upon single / all linked loan accounts selected by the Customer. The assessment of the application will be done basis the regulatory guidelines on the COVID-19 impact and the viability of the repayment plan before arriving at any decision.

The decision taken by the Company shall be communicated to the customer within 30 days of receipt of application.

As per regulatory and legal requirements, all Borrowers/Co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.

In order to apply for restructuring following channels are available

a. Please log on to the Website www.pnbhousing.com and submit request on the RETSRUCTURING 2.0 section or

b. Please submit the request in the nearest branch or

c. Please contact us on 1800 120 8800 or

d. email us at customercare@pnbhousing.com.

In the statement issued on 22nd May 2020, the RBI governor has extended the availability of moratorium by another 3 months. While the COVID package announce in March 2020 had allowed a moratorium on repayment of term loans for the period from March 2020 to May 2020, the policy statement of 22nd May has extended this for repayments due from June 2020 to August 2020. The RBI Statement says :

“In view of the extension of lockdown and continuing disruptions on account of COVID-19, the above measures are being extended by another three months from June 1,2020 till August 31,2020 taking the total period of applicability of the measures to six months (i.e from March 1,2020 to August 31,2020) ……….”

All loan customers can now avail the moratorium on EMIs payable till August 2020. If customer chooses, he will not be required to pay the EMIs of June, July, August 2020. The repayment will re-start from September 2020 onwards :

• Those customers who had availed of moratorium during Moratorium 1.0  and not paid the EMIs of March and/or April and/or May, may choose to extend the moratorium and not pay the EMIs of June, July, August 2020 ;
• Those customers who did not avail the Moratorium 1.0 till 20th May 2020 can avail fresh moratorium, whereby they will not pay EMIs of June, July and August 2020 ;

Please note that like in Moratorium 1.0, the extension of moratorium does not mean “EMI Waiver” as the interest will continue to accrue on the unpaid principal. The accrued interest will be added to the principal outstanding and revised EMI will be payable on the increased principal from September 2020.

The impact on terms of the loan is explained below:

• The Interest for the period of moratorium will be added to the Principal ;
• The balance tenor of the loan will increase by the period of moratorium availed. Customers who had availed of 3 month moratorium earlier and now extend it by another 3 months, the balance tenor will get extended by 6 months.  Customers who take the moratorium now – the morat will be for 3 months and tenor will also get extended by 3 months ;
• New EMI will be calculated on the increased POS (point (a) above) and balance tenor (point (b) above).  The New EMI will be payable from September 2020 onwards ;

Case 1:  Customer A availed of moratorium in the month of March 2020 for 3 months. He is now availing an extension of the moratorium by another 3 months

As is visible, the EMI of the loan which had increased from Rs 43227 to Rs 44234 (3 month moratorium),  will now increase to Rs 45,265 (6 month moratorium).

The EMI is calculated basis balance tenor = 175 months after the expiry of morat period (Sept 2020 onwards).

Case 2:  Customer who will avail for moratorium afresh

Here, the new EMI will be Rs 44,233/- which is calculated on balance tenor of 172 months from September 2020 onwards.

No, Customers who have availed of a moratorium will have to give an explicit request for extension of moratorium.  SMS and Emails will be broadcasted to the customers. Two channels will be available to the customers :

• A web page available on the website where customer can record his request ;
• Missed call at 8743950000 from his registered mobile number ;
• Customers may also write to customercare@pnbhousing.com from their registered email id ;

Yes, moratorium can be availed afresh. SMS and emails will be sent across to customers. The three channels as mentioned in the answer of question above will be available to the customers for taking moratorium afresh.

Yes, Subsequent disbursements will be allowed.

No, cancellation of moratorium is not possible.

Yes, Unlike Moratorium 1.0 part payment will be allowed.

In that case the applicable moratorium period will be for the remaining 2 months and June EMI amount will kept as an advance EMI, the effect of which, will be given against September’20 month instalment.

Yes, you will have to select the moratorium option for each account separately.

All term loans outstanding as on March 1, 2020 were eligible to claim the relaxation. This includes both the housing and non-housing loans.

It is a relief granted to the borrower due to disruption caused by the sudden lockdown. However, the option lies with the borrower to either repay the loan during this moratorium as per the actual due dates or avail the benefit of the moratorium. It cannot be both.

The last date to apply for moratorium is 31st May’20, in order to avoid EMI deduction of June’20 month.

As per recent statement issued by RBI through press release dated 27th March, 2020, various developmental and regulatory policies have been announced that directly address the stress in financial conditions caused by COVID – 19.

All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (“lending institutions”) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. Accordingly, the repayment schedule and subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months.

Moratorium means a payment holiday. This means that during the period of moratorium no payment has to be made by the customer to the lending institution (PNBHFL). The interest which is accrued for the moratorium period shall become payable after the end of moratorium period. Thus this is like a deferment of payment.

The idea of a moratorium is not to give you an interest free period but instead it is to help with cash flow.

This is not a waiver, but a deferment. Customer will have to pay the EMIs at a later as decided by the HFC / bank. The RBI has told financial institutions to have board-approved policies in place on moratorium/deferment.

Yes. It does. If announced by bank / financial institution, you can forego payment of your entire EMI, including payment and interest.

No, the lending institutions have been permitted to allow a moratorium of three months. This is a relaxation offered by RBI to the lending institutions. This is neither an RBI guidance to the lenders, nor is it a leeway granted by the RBI to the borrowers to delay or defer the repayment of the loans.

Customers wanting to avail moratorium offer will need to specifically request / apply for the same. For ease of customers, the methodology has been made simple.

PNBHL has given full 3 months tenure as a moratorium period.

The lenders are permitted to grant a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020. The intention is to shift the repayment dates by three months. Therefore, the moratorium should start from the due date, falling immediately after 1st March, 2020, against which the payment has not been made by the borrower.

For example, if an instalment was due on 15th March, 2020, but has remained unpaid so far, the lender can impose the moratorium from 15th March, 2020 and in that case, revised due date shall be 15th June, 2020.

PLEASE NOTE : The last date to apply for moratorium is 20th May’20 hence we will not be able to accept requests any further.

Yes, the moratorium is a “payment holiday” however, the interest will definitely accrue. The accrual will not stop.

Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

Please refer the below mentioned illustration to understand it better.

You have a home loan of Rs. 50 lakh at 8.5% interest for 10 years. The EMI is Rs. 62,000 (approximately).

You have to pay the first instalment in April, but you choose to take the moratorium. This means the principal of Rs. 50 lakh attracts interest at 8.5%/12 = Rs. 35,000. So your loan amount at the end of April is Rs. 50,35,000.

You don’t pay in May. Interest applies on the FULL amount of 50.35 lakh now, so it’s a little closer to Rs. 36,000 in May. The total outstanding becomes Rs. 50.71 lakh. After three months, your new principal is Rs. 51.07 lakh.

Effectively you’ll have about Rs. 1 lakh in extra interest to be paid to the bank.

The loan stretches three more months at the end, but this Rs. 1.07 lakh extra is additional so either you have to increase the EMI, or request for reduction in ROI.

It is therefore advisable to restrict the selection of moratorium option only in the scenario of cash flow issues.

As per the released regulation, the rescheduling of payments will not qualify as a default for the purposes of supervisory reporting and reporting to credit information companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions pursuant to the above announcements do not adversely affect the credit history of the beneficiaries.

No, Moratorium is applicable for loans that existed as on March 1st, 2020.

The repayment schedule and all subsequent due dates, as also the tenor for loans may be shifted by three months (or the period of moratorium granted by the lending institution).

Instalments will include payments falling due from March 1, 2020 to May 31, 2020 in the form of :

• Principal and/or interest components;
• Bullet Repayments;
• Equated Monthly instalments;

Overdue interest will be applicable in case of default in payment. However, during the moratorium, the payment itself is contractually stopped. If there is no payment due, there is no question of a default. Therefore, there will be no overdue interest or delayed payment charges to be levied.

All term loans outstanding and accounts as on March 1, 2020 were eligible to claim the relaxation. This includes both the housing and non housing loans.

Since the grant of the moratorium is completely discretionary, the lending institution may grant different moratoriums to different classes of borrowers based on the degree of disruption on a particular category of borrowers. However, the grant of the moratorium to different classes of borrowers should be making an intelligible distinction, and should not be discriminatory.

It is a relief granted to the borrower due to disruption caused by the sudden lockdown. However, the option lies with the borrower to either repay the loan during this moratorium as per the actual due dates or avail the benefit of the moratorium. It cannot be both.

If the customer has applied for moratorium, the same has been made applicable to all linked loans of the customer.

The last date to apply for moratorium is 20th May’20 hence we will not be able to accept requests any further.

It has been decided by the Government of India to waive “interest on interest” charged on consumer loans for the period 1st March 2020 to 31st August 2020. This will give a big relief to retail and MSME borrowers. A scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months of loans up to Rs 2 crore has been rolled out by Department of Financial Services through its notification dated 23rd October 2020

Borrowers who availed the moratorium will be compensated for the compound interest they would be charged by the banks while those who paid on time will get as cashback the notional interest on the interest that they paid.

a) Borrowers who have loan accounts having sanctioned limits and outstanding amount of not exceeding Rs 2 crore (aggregate of all facilities with lending institutions) as on February 29 shall be eligible for the scheme

b) Housing loan, education loans, credit card dues, auto loans, MSME loans, consumer durable loans and consumption loans are covered under the scheme

c) The loan account should be standard account as on February 29, 2020. By Standard Asset, it means that the loan should be less than 90DPD as on 29/02/2020

d) The payment will be made to the borrower’s loan account irrespective of whether the borrower has fully availed, partially availed or not availed the moratorium. Thus, even if you have not opted for the moratorium, then also you are eligible under the scheme.

The loan outstanding will be arrived at by checking the Bureau data i.e CIBIL data. If the CIBIL score shows total outstanding > 2 crores then benefit of ex gratia will not be available.

As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest with regard to the eligible borrowers in respective accounts for the said period irrespective of whether the borrower fully or partially availed the moratorium on repayment of loan announced by the RBI on March 27, 2020.

Under the scheme, the difference between the compound interest and simple interest will be credited to the borrower’s loan account for the period between March 1, 2020 and August 31, 2020 (Six months/ 184 days).

If you have opted for the six-month moratorium, then the interest portion of your EMI will be added to the outstanding principal component and the new EMI is calculated for the remaining loan tenure. Normally, the interest is calculated using a compounding formula, which means you pay interest on accrued interest as well. However, under the waiver scheme, a borrower is required to pay simple interest instead of compound interest on the outstanding loan amount during the moratorium period which means a lower interest burden on the borrower. The difference between the simple interest (which is offered under the scheme) and compound interest (a normal banking practice) will be borne by the government irrespective of whether the borrower has availed moratorium or not. This essentially also benefits the borrower who were able to service their EMIs diligently even during the moratorium period.

Example:

Suppose the Loan outstanding as on 29/02/2020 : Rs 50,00,000
Rate : 9% p.a

Simple interest for 1 month : 50,00,000 x 9% / 12 = Rs 37,500
Simple interest for 6 months : 37,500 x 6 = Rs 2,25,000

Compound interest for 6 month :{5000000 x (1 + (9%/12)) ^ 6} – 5000000
= Rs 2,29,262

Difference (B-C) = Rs 2,29,262 – Rs 2,25,000
= Rs 4,262

The guidelines from government of India have made the scheme very simple. The amount on which the ex gratia benefit will be calculated is the principal outstanding as on 29th February 2020. Any part payment / subsequent disbursement done in the account post 29th Feb 2020 will not be considered in the base amount used for calculations.

Those who have foreclosed/ preclosed/closed their loan dues during the moratorium between March and August 2020 will also be eligible for the benefit. The period for which the interest benefit will be calculated will be restricted to time between 01st March 2020 till the date of closure of loan.

Yes, the scheme is also applicable for those customers who have not availed the moratorium scheme and continued with the repayment of loans.

The interest rate on which the computation (differential between Simple interest and compound interest) would be worked out (as shown in example in answer to Question no 4) will be the rate which was prevailing as on February 29, 2020.

The amount will be credited to the borrower’s loan account by November 5, 2020. In case the loan account is closed, the amount will be credited to the borrower’s savings bank account by November 05, 2020.

For the Live loan accounts, the ex gratia payment will be credited as a prepayment into the loan account of the customer.

For the loans which have been closed, the payment will be credited as NEFT/Cheque into the repayment bank account of the customer

The EMI of the loan will remain unchanged to the existing (Post August 2020) EMI. The credit of ex gratia payment to the loan account will lead to reduction in balance tenor.

Yes, the benefit will be credited to the restructured loans also.

If the loan is running under the upfront subvention scheme, the ex gratia payment will be credited as excess in the customer account. The same will be adjusted against the future dues/ outstanding of the loan.

The normal grievance redressal mechanism of the company will be used for handling the grievances related to ex gratia interest on interest payments.  Customers may approach the branch or write to customercare@pnbhousing.com. Any further escalations may be sent to nodalofficer@pnbhousing.com . Level 3 may go to executivedirector@pnbhousing.com

Customer may also logon to the website to put in his escalation. A separate escalation category ‘waiver of interest on interest is being created.

The ex gratia payment is a payment to the customer and the dues are also customer’s responsibility. Hence ex gratia payment will be applied to the loan as a part payment. As per logic of the payment appropriation, the dues will be adjusted before crediting the funds to the principle outstanding

No, the eligibility of the customer is calculated basis the loan outstanding as on 29th February 2020. As the GECL loan is disbursed after that period, it will not be added to the loan outstanding. The base loan of the customer (who has taken GECL) will be eligible for ex gratia payment, if the loan was there as on 29th February 2020.

No. The ex gratia relief will be credited to the account of all eligible borrowers without
any requirement to apply.

Lending institutions are to assess this on the basis of information available with them
as well as information accessible from credit bureaus.

Fixed Deposit will be accepted from Resident Individual/ HUFs /Public/Private companies /Non-Resident Indians/ Co-operative Societies / Co-operative Banks/ Trust / Association of person, PF Trust etc.

A prospective depositor has to fill prescribed “Deposit Application Form” along with all KYC documents and an accounts payee cheque/ Demand Draft/ NEFT/ RTGS in favour of PNB Housing Finance Limited. Deposit applications are available at all PNB Housing branches and with its authorized brokers. Deposit forms could be downloaded from company’s website – www.pnbhousing.com.

Property insurance is mandatory in order to protect your property against uncertainties like earthquake, fire or any damage and destruction due to natural and man-made calamities, during the tenure of the loan.

Cumulative Deposit – INR 10000
Non-Cumulative Deposit –
Monthly Income Plan – INR 100000
Quarterly Income Plan – INR 50000
Half yearly Income Plan– INR 20000
Annual Income Plan – INR 20000

If a customer is a resident Indian individual/entity/trust the minimum tenure is 1 year and maximum tenure is 10 years.

Yes, PNB Housing will issue FD receipt of the money deposited by a customer with us.

Yes.

In terms of the Prevention of Money Laundering Act, 2002, the rules notified there under and KYC guidelines issued by the Reserve Bank of India (RBI), every depositor is required to comply with the KYC requirements by submitting the following document:

• Latest photograph.
• Certified copy of proof of identity such as Pancard, Aadhar Card, Passport etc.
• Certified copy of proof of address, for Corporate it is certificate of incorporation, Pancard Registration no. / trust deed.

Yes, loan facility is available at the discretion of PNB Housing, which can be availed only after three months from the date of deposits and up to 75% of the deposit amount subject to certain terms and conditions. Interest rate on such loans will be 2% higher than the rate of interest on the deposit being paid to depositor.

Yes, FD amount can be withdrawn before the original term (pre-mature withdrawal) of the FD. In accordance with the provisions of the Housing Finance Companies (NHB) Directions 2010, and on request being made by a depositor, premature withdrawal of the deposit may be allowed subject to the following conditions:

In case a deposit is made through an authorized deposit broker – the excess brokerage paid will be recovered from the deposit amount. Excess brokerage is the difference between brokerage for original contract period minus brokerage for the period for which deposit has run.

If the aggregate interest income a customer is likely to earn for all deposits is greater than Rs.5,000/- in a financial year, depositor becomes liable for TDS. A customer can submit Form 15G (For Individuals and HUF) /15H (For Senior Citizen who is of the age of 60 years or more) or a certificate for lower/nil deduction of TDS issued by Income Tax Authorities u/s 197 of the Income Tax Act, 1961.

In case of NRIs, any amount of interest paid/credited during the financial year shall attract TDS.

Yes, Non Resident Individuals can open a fixed deposit with PNB Housing and provide funds from their NRO accounts only. Minimum tenure is 1 year and maximum tenure is 3 years.

Yes, but for the purpose of computation of tax liability all the accounts will be clubbed.

Yes, Deposit with PNB HFL are eligible investments under Sec 11(5) (vii) and 11 (5) (ix) of the Income Tax Act, 1961.

Yes, unless a trust produces a certificate of exemption issued by a competent authority.

Yes, nomination facility is available with PNB Housing FD.

Yes, a minor can apply under a guardian.

Yes, as per the directions of National Housing Bank, depositor has to provide a duly discharged deposit receipt along with an application form at the time of renewal.

Change in demographic details can be informed to PNB Housing branch office through an e-mail from the registered e-mail id or placing a request on the Company’s website, under Customer Care>Write to Us section.

In case a deposit receipt is lost/ mutilated a depositor has to give an application and an indemnity form for issue of duplicate deposit receipt.

• In case of death of depositor, the proceeds will be paid to nominee or joint holder, if the repayment option is either or survivor.
• In other cases, the legal heir(s) have to produce either a succession certificate/ probate of a will and an indemnity bond (in a prescribed format). Claim will be settled by PNB Housing, if the Company is otherwise satisfied.

Yes, Company’s deposit programme has been rated by CRISIL. The rating is FAA+/Negative.

Interest will be payable on the fixed deposit from the date of realisation of cheque or fund transfer to PNB HFL’s bank account. Interest on deposit is paid as per the FD plan selected by a customer.
Non-Cumulative Deposit:

Cumulative Deposit: Interest will be compounded annually on 31st March of every year after deducting the tax, wherever applicable. The principal along with interest will be paid on maturity once the discharged deposit receipt is received by us.

Loan against Fixed Deposit is a loan, wherein you can pledge your FD as a collateral, in return for
the loan amount. PNB Housing offers easy Loan against Fixed Deposits at fixed interest rates, with quick
processing, flexible repayment options and minimal documentation.

Loans may be granted against public deposits upto 75% of the principal deposit amount carrying @2% per
annum above the deposit interest rate and other additional charges applicable on such deposit, provided
the deposit has run for a minimum period of 3 months.

On maturity, the outstanding loan together with interest shall be settled in one lump sum by the depositor
or shall be adjusted on maturity of the deposit.

The rate of interest applicable on Loan against Fixed Deposit is 2% more than the effective FD rate
of interest.

You require to submit the following set of documents at your base branch:
a. Application form
b. Original signed and revenue stamped FDR.

No, the CIBIL score is not checked the loan is given on the basis of existing Fixed Deposit

There is no processing fee applicable for a case of Loan against FD.

No, there are no foreclosure or pre-payment charges applicable on your Loan against Fixed
Deposit.

You can avail loan amount up to 75% of the fixed deposit amount.

Below mentioned are eligible to avail loan against Fixed Deposit :

• Resident citizens of India
• Hindu Undivided Family (HUF)
• Sole Proprietorships, Partnership Firms,
• Associations
• Trusts

You can take Loan against FD after completion of 90 days from the effective date of deposit.

The loan amount can be re-paid either in part or in full at any time before the date of maturity of
deposit.

It takes T + 1 working day to process, the loan after the application and FDR is submitted / e
mailed.

In such a scenario, the entire due loan amount will be recovered either by the way of interest or
principal or TDS will be recovered from the deposit amount payable at maturity.

Yes, It can be pre-closed.

Basis the request letter duly signed by all applicants, pre-closure of loan against deposit request can be accepted and processed ONLY BY BASE BRANCH.

Upon submission of request, the loan portion will be settled first from the deposit amount (subject to TDS). Applicant will have the option to either adjust the loan closure amount either from his deposit maturity amount or settle from his own sources. In case, applicant opts to pay the loan closure amount from his deposit maturity amount (after deduction of the pre-closure charges etc), balance deposit maturity will be credited in the customer’s bank account.

Please note that a lien will be marked against all loan against deposit cases and it will be revoked, once the loan amount is duly settled off.

In order to change bank account details, you need to give us the cancelled cheque copy of that
account. The loan amount can only be credited to the first applicant’s bank account and not to any third
party.

In such a scenario, the entire due loan amount will be recovered either by the way of interest or
principal or TDS will be recovered from the deposit amount payable at maturity.

Yes, SMS communication will be auto-triggered from the system.

No, Loan against deposit cannot be opted in cases where Minor is the first applicant

Yes, all the applicants have to place their signatures in the promissory note, which is part of the
Application Form.

The unpaid loan amount from the deposit amount (subject to TDS) will have to be set off by the
customer and the auto-renewal functionality will not be processed, in case the loan is not paid till the date
of maturity of deposit.

The balance deposit (deposit amount minus loan amount) amount will remain with PNB Housing Finance
till the customer place the request of closure of deposit / renewal of deposit.

In case of non-cumulative deposit, the interest payment will not be processed till the closure of
loan.

Interest on loan will be compounded monthly, quarterly, half-yearly, yearly depending upon the
interest payment/compounding frequency on Deposits. The interest on loan will be recovered/paid from
the interest on deposit (subject to TDS if any) and/or maturity value of the deposit.

Deposits and Loan account details are available online on Customer Portal and on Mobile Application. The web version can be accessed through the website by clicking “Customer Login” and mobile application can be downloaded from Google Play store (for Android) and App Store (for iOS). Users can create their user id and password to enjoy hassle free online services. It is a single window interface to provide important information at a click of a button, like IT Certificates, EMI payment status etc.”

Link Customer login to https://customerservice.pnbhousing.com/myportal/pnbhfllogin

Customers can anytime anywhere access the following:

1. Download Statement of account
2. Download IT Certificates
3. View Transaction history
4. Update email address
5. Raise & Track Service Requests
6. Apply for subsequent disbursements

Customers can anytime anywhere access the following:

1. Download Statement of account
2. Download Interest Certificates
3. Submit Form 15G/H online
4. Update email address
5. Raise & Track Service Requests

• A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family under various schemes for EWS/LIG/MIG-1 and MIG-2.
• Through this scheme, the beneficiary is eligible to avail interest subsidy on the purchase/construction of a house/enhancement of a dwelling unit.
• For more details please refer to the section on PMAY.

Customers may track the status of their PMAY application through the link https://pmayuclap.gov.in/ by using their Application id.

Yes, home loan can be prepaid. Part payment is to be made vide a cheque at any of your nearest PNB Housing branches. The cheque should be in favour of “PNB Housing Finance Limited ”, from any of the loan applicants bank account only. Part prepayments are to be made between 6th till 24th of the month. For applicable loan pre-payment fee, kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com

Yes, loan outstanding can be pre-paid before the completion of the actual tenure. As a process you will need to submit a written application at the branch. Please note that the application is to be submitted by the borrower himself along with a service fee (refer schedule of charges). Full prepayments are to be made only between 6^th till 24^th of the month. For applicable loan pre-closure fee, kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com.

Income Tax certificates can be availed from: 1. Our IVR Services by calling at 1800 120 8800 2. Our Mobile Application 3. Our website https://customerservice.pnbhousing.com/myportal/pnbhfllogin. The certificate from the above is not chargeable. If certificate is availed from any other source, a nominal service fee will be applicable. Kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com

Statement of Accounts can be availed from: 1. Our IVR Services by calling at 1800 120 8800 2. Our Mobile Application 3. Our website https://customerservice.pnbhousing.com/myportal/pnbhfllogin. The certificate from the above is not chargeable. If certificate is availed from any other source, a nominal service fee will be applicable. Kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com

Repayment Schedule can be availed from: 1. Our Mobile Application 2. Our website https://customerservice.pnbhousing.com/myportal/pnbhfllogin. The certificate from the above is not chargeable. If certificate is availed from any other source, a nominal service fee will be applicable. Kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com

You may visit our branches from Monday to Saturday (except for 1^st & 2^nd Saturday) between 10:am to 2pm. Please ensure to book an appointment before visiting our branch through https://www.pnbhousing.com/book-an-appointment/.

1. Repayment of the loan is preferred through NACH. Forms for which are available at our branches. A cancelled cheque along with 2 PDCs will be required to be submitted at any of the PNB HFL branches for NACH registration. The registration usually takes 45 days.
2 Alternatively, if PDCs are to be replenished, then kindly submit the Post Dated Cheques to your nearest PNB HFL branch before the EMI due date to avoid any late payment charges

Once we receive your request for disbursement, we will disburse the loan in full or in instalments, which usually do not exceed three in number. In case of an under construction property, we will disburse your loan in installments based on the progress of construction, as assessed by us and not necessarily according to the developer’s agreement.

Yes, FD amount can be withdrawn before the original term (pre-mature withdrawal) of the FD. In accordance with the provisions of the Housing Finance Companies (NHB) Directions 2010, and on request being made by a depositor, premature withdrawal of the deposit may be allowed subject to the following conditions:

In case a deposit is made through an authorized deposit broker – the excess brokerage paid will be recovered from the deposit amount. Excess brokerage is the difference between brokerage for original contract period minus brokerage for the period for which deposit has run.

If the aggregate interest income a customer is likely to earn for all deposits is greater than Rs. 5,000/- in a financial year, depositor becomes liable for TDS. A customer can submit Form 15G (For Individuals and HUF) /15H (For Senior Citizen who is of the age of 60 years or more) or a certificate for lower/nil deduction of TDS issued by Income Tax Authorities u/s 197 of the Income Tax Act, 1961. In case of NRIs, any amount of interest paid/credited during the financial year shall attract TDS.

However if the PAN status is non-compliant at Income Tax website, then TDS will be deducted at double the rate of TDS, under the section 206AB of IT ACT, with no exemption.

Yes, nomination facility is available with PNB Housing FD.

Yes, as per the directions of National Housing Bank, depositor has to provide a duly discharged deposit receipt along with an application form at the time of renewal.

However, auto renewal is available for one-time renewal. For any further renewals, a fresh application is required.

Change in demographic details can be informed to PNB Housing branch office through an e-mail from the registered e-mail id or placing a request on the Company’s website, under Customer Care Write to Us section.

In case a deposit receipt is lost/ mutilated a depositor has to give an application and an indemnity form for issue of duplicate deposit receipt.

• In case of death of depositor, the proceeds will be paid to nominee/joint holder, if the repayment option is either or survivor.
• In other cases, the legal heir(s) have to produce either a succession certificate/ probate of a will and an indemnity bond (in a prescribed format). Claim will be settled by PNB Housing, if the Company is otherwise satisfied.

Interest will be payable on the fixed deposit from the date of realization of cheque or fund transfer to PNB HFL’s bank account. Interest on deposit is paid as per the FD plan selected by a customer. Non-Cumulative Deposit:

Cumulative Deposit: Interest will be compounded annually on 31st March of every year after deducting the tax, wherever applicable. The principal along with interest will be paid on maturity once the discharged deposit receipt is received by us.

In terms of the Prevention of Money Laundering Act, 2002, the rules notified there under and KYC guidelines issued by the Reserve Bank of India (RBI), every depositor is required to comply with the KYC requirements by submitting the following document:

• Latest photograph.
• Certified copy of proof of identity such as Aadhar Card, Passport, Driving License etc.
• Certified copy of proof of address, for Corporate it is certificate of incorporation, Registration no. / trust deed.