Frequently asked questions :: EMI Moratorium

What is the recent regulation released by RBI that concerns the home loan customer?

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.

What is the meaning of moratorium?

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.

Will opting for moratorium give relaxation of free EMI period?

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

Is this a waiver of EMIs or a deferment of EMIs?*

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.

Does the moratorium cover both Principal and Interest?*

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

Has the RBI granted a compulsory moratorium? Will PNBHFL grant moratorium to all loan customers by default

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.

What shall be the moratorium period?

PNBHL will give full 3 months tenure as a moratorium period.

From what date can the moratorium be granted?

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.

Will the interest accrue during the moratorium period?

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

How will be the treatment of interest in the loan account?

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

Please elaborate the aforementioned regulation and its impact on a customer’s loan account, with the help of an example?

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.

In case a customer opts to go for moratorium offer, then will it have any adverse impact on CIBIL score?

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.

Is it possible to apply for home loan as well opt for moratorium, at the same time?

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

Is the moratorium on principal or interest or both?

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;

Will there be delayed payment charges for the missing instalments during the moratorium period?

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.

Which all loans shall be eligible for the relaxation?

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

Is the lending institution required to grant the moratorium to all categories of borrowers?

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.

Can the borrower pay in between the moratorium period?

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.

What will be the treatment in case of a customer with multiple loan accounts?

A customer has to mention each loan account in his communication so that offer is considered against all linked loan account number(s).

When and how can the customer apply for moratorium?

The customer can apply for moratorium anytime from today till 31/05/2020. Loan repayments in terms of EMI/ Pre EMI will not be applicable from the date of applying till the moratorium end date.

Customers can apply through

  • Website link
  • Short code SMS at 56161
  • Email
  • Missed call at 8743950000 from his registered mobile number

Customers who do not apply through any of the medium as mentioned above will deem to have rejected/not accepted moratorium. In such case, regular EMI/Pre EMI will continue to be paid.

Frequently Asked Questions :: Home Loans Asset

What is the process of applying for a Home Loan?

Step 1: Submit your loan application along with required set of documents.

Step 2: Your application would be assessed on the basis of various eligibility and funding norms.

Step 3: A property valuation and title check may be carried out by the company representative to determine the property value and legal clearance of the property to arrive at the loan amount.

Step 4: Based on the internal and regulatory guidelines, PNB Housing may approve or reject the loan application.

Step 5: Submission of the original property documents are required along with signing of agreements, handing over of registered property papers and submission of post-dated cheques/ECS.

Step 6: Upon finding all the documents in order, PNB Housing will disburse the loan amount to the developer/contractor based on the progress of construction. The EMI/Pre-EMI will commence after the disbursement.

Am I eligible for a Home Loan?

You are eligible for a loan if you are an Indian citizen or a person of Indian Origin and are a salaried/ self- employed professional/ a businessman. Your loan eligibility will be determined by PNB HFL on the basis of professional income, age, qualifications, number of dependents, co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings and prior credit history. Further, the loan eligibility will also be dependent on the value of property selected by you.

What percentage of property value can be funded?

We can fund up to 90% of the property value in case of Home Loan and up to 60% in case of Loan Against Property. However, PNB HFL funding norms may change from time to time and from property to property or based on the loan amount.

I purchased a property 3 months back; can i get a Home Loan?

Yes, you can avail re-finance at applicable Home Loan rate within 6 months from the date of property purchase.

What is EMI and Pre-EMI?

Your loan is repaid through Equated Monthly Instalments (EMI), which includes principal and interest component. EMI repayment starts from the month subsequent to the month of final disbursement. Pre-EMI Interest is the simple interest, payable every month till the time loan amount is not fully disbursed.

In case of change of floating rate of interest, will my EMI change or tenure?

Keeping the borrower’s convenience in consideration, EMI is kept constant and residual loan tenure is adjusted. Under exceptional situations, the EMI is changed to support the principal repayment, within a time frame.

What security do I need to provide?

The prime security for the loan is by way of deposit of title deeds and/or such other collateral security as may be decided by PNB HFL. The title of the property should be clear, marketable and free from any encumbrances.

Can I prepay my Home Loan? Are there any charges applicable?

Yes, home loan can be prepaid. For applicable loan pre-payment fee, kindly refer to the Schedule of Charges under “Fair Practice Code” section on our website www.pnbhousing.com

What does fixed rate of interest mean?

PNB Housing offers a pure fixed rate of interest from the day of first disbursement for a specified period as per the extant loan scheme, prevailing at the time of availing the loan. Thereafter, for the residual loan tenure, the outstanding principal loan amount automatically moves to a floating rate of interest at the then prevailing rates of interest.

When can the customer avail of the disbursement of his home loan?

Customer’s loan will be disbursed after he has selected the property, applied for his Home Loan, submitted the requisite income and property documents, the property is technically and legally sound and customer has paid his own Contribution towards the purchase of the property. The disbursement would be in Indian Rupees and made at the PNB Housing branch in India, as specified by him.

The cheque for the loan amount is drawn in favour of the Developer or the Seller (in case of a resale property) as the case may be. In case of an under-construction project, PNB Housing disburses the loan amounts proportionate to the stage of construction.

How do I get my Income Tax certificate?

We despatch income tax statement to all our customers after the financial year end. However, you may also contact your nearest PNB HFL branch to get the required documents or place a request on our website for the same.

How do I replenish exhausted PDCs?

1. Kindly submit the Post Dated Cheques to your nearest PNB HFL branch before the EMI due date to avoid any late payment charges.
2. Repayment of loan is preferred through ECS.

Does the property need to be insured?

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.

Frequently Asked Questions :: Home Loan Asset – NRI

What is the definition of a NRI?

NRI definitions under FEMA:

The most relevant definition concerning an NRIs various bank accounts and investments in movable and immovable properties in India is the one provided under FEMA, which has replaced the Foreign Exchange Regulation Act , 1973-(FERA) with effect from 1st June,2000. Person Residing outside India is the term used for an NRI, being a person who has gone out of India or who stays outside India for the purpose of employment or carrying on business or vocation outside India or any other circumstances which indicate his intention to stay outside India for an uncertain period.

How can customer repay the loan?

PNB Housing offers various modes for repayment of the loan. Customer may either issue post-dated cheques or standing instructions to his banker to pay the instalments through ECS (Electronic Clearing System) from your Non-Resident (External) Account / Non-Resident (Ordinary) Account in India. Cash payments will not be accepted.

How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?

In the event of customer getting re-located back to India, PNB Housing reassesses the repayment capacity of the applicant(s) based on Resident status and a revised repayment schedule is worked out. The new rate of interest will be as per the prevailing applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.

Is the Customer required to be physically present in India at the time of availing loan?

Customer need not be present in India to avail of your Home Loan. In case customer is posted abroad at the time of submission of the loan application and disbursement of the loan, he/she can avail the loan by appointing a Power of Attorney as per PNB Housing’s format. The Power of Attorney holder can apply and carry out the formalities on his behalf.

What is a Power of Attorney?

A power of attorney is a resident Indian appointed to act on behalf of all the applicants through an execution of the Specific Power of Attorney (SPOA) deed. It is mandatory for both the applicant and co-applicant execute the SPOA in favour of the person concerned. If the co-applicant is a resident Indian, he / she can also be the SPOA through the execution of the SPOA by the applicant.

Frequently Asked Questions :: Fixed Deposits

Who can open a FD account with PNB Housing?

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.

How is a deposit made?

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.

Does the property need to be insured?

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.

What is the minimum amount to place a FD with PNB Housing?

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

What is the range of tenure for which a customer can have a FD account?

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

Will a customer get any receipt of deposit with PNB Housing?

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

Are Know Your Customer (KYC) documents required for all depositors?


Checklist of Know your Customer (KYC) Compliance?

In terms of the Prevention of Money Laundering Act, 2002, the rules notified there under and KYC guidelines issued by the National Housing Bank (NHB), 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.

Can a loan be obtained from PNB HFL against the security of a PNB HFL Fixed Deposit?

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.

Can a deposit customer redeem his FD amount before the contracted term? If so, are there any conditions applicable to the same?

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:

Period completed from date of deposit Individuals Non – Individuals
(a) Minimum lock in period 3 Months 3 Months
(b) After three months but before six months 4% p.a. No Interest
(c) After six months but before the date of Maturity For Individuals and Non – Individuals the interest payable shall be 1% percent lower than the interest rate applicable to a public deposit for the period for which the deposit has run.

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.

When does a customer become liable for TDS?

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.

Can Non Resident Individuals open Fixed Deposit A/C?

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.

Can a depositor open multiple accounts?

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

Can a Trust deposit money with PNB Housing?

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

Is a Trust liable for TDS on interest earned?

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

Is nomination facility available?

Yes, nomination facility is available with PNB Housing FD.

Can a deposit be accepted from minor?

Yes, a minor can apply under a guardian.

Is it mandatory to give fresh application form on renewal?

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.

How can change in demographic details of an individual be informed?

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.

What is the procedure for re issue of lost/mutilated deposit receipt?

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.

What is the procedure for payment of deposit proceeds in case of death of a depositor?

  • In case of death of depositor, the proceeds will be paid to 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.

Are Company’s deposit rated?

Yes, Company’s deposit programme has been rated by CRISIL. The rating is FAAA which is the highest rating.

At what frequency will a deposit customer receive interest on PNB HFL FD?

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:

Scheme Interest Payment Date
Monthly Income Plan Last day of each month
Quarterly Income Plan June 30, September 30, December 31st and March 31st
Half Yearly Plan September 30th and March 31st
Annual March 31st

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.

Frequently Asked Questions :: Customer Portal & Mobile Application

How can I access my account details online?

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

Frequently Asked Questions :: Pradhan Mantri Awas Yojna (PMAY)

Who Can Avail Subsidy Under Credit Linked Subsidy Scheme (CLSS) under Pradhan Matri Awas Yojna (PMAY)?

  • 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.

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