Loan Against Property - PNB Housing advantage

Personalized doorstep service
High standards of ethics, integrity and transparency
Up to 20 Years Loan tenure
Customized eligibility program
Funding up to 70% of property cost
Numerous repayment options
Accessible network & decades of experience
Excellent post disbursement services

Loan Against Property

Interest   Rate

Starting from
8.75%*
 
Note: The mentioned Interest rates are   Floating Rates

Loan Against Property

Eligibility Criteria

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    You should either be a salaried employee or a self-employed professional/non-professional.

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    Your age should not be more than 60 years if you are a salaried employee, and not more than 65 years if you are a self-employed professional/non-professional, at the time of loan maturity.

Loan Against Property

Documents Required

All documents need self-attestation.
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    Duly filled Application Form with Photograph

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    Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)

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    Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)

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    Education Qualifications – Latest Degree

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    Latest Salary-slips for 3 months

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    Form 16 for last 2 years

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    Last 6 months Bank Statements(salary account)

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    Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’

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    Photocopy of Title Documents of the Property, Approved Plan

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    Duly filled Application Form with Photograph

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    Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)

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    Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)

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    Education Qualifications – Latest Degree (for professionals)

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    Certificate & Proof of business existence along with Business Profile

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    Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant

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    Last 12 months Bank Account Statements (self & business)

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    Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’

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    Photocopy of Title Documents of the Property, Approved Plan etc.

Loan Against Property

Frequently Asked Questions

1. What is a Loan Against Property (LAP)?

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A Loan Against Property is a secured loan where you pledge your residential or commercial property as collateral to raise funds for personal or business needs. You retain ownership and usage of the property while repaying the loan.

2. How does a Loan Against Property work?

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The lender evaluates your property’s market value and offers a loan amount based on a percentage of that value (Loan-to-Value ratio). The property remains mortgaged until the loan is fully repaid.

3. What purposes can a Loan Against Property be used for?

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Funds can be used for business expansion, education, medical expenses, debt consolidation, weddings, or any other legal purpose. There are generally no restrictions on end-use except for speculative or unlawful activities.

4. Who is eligible for a Loan Against Property?

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Eligibility typically includes:

• Salaried individuals: Stable income, age 21–60 years.
Self-employed/business owners: Age 25–65 years, business continuity of 3+ years.
• Clear property title and acceptable credit profile.

5. What types of properties are accepted as collateral/security/mortgage?

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Most lenders accept:

• Residential property (self-occupied or rented)
• Commercial property
• In some cases, industrial property (subject to policy)

6. How much loan can I get against my property?

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Loan amount usually ranges from 50% to 70% of the property’s market value, depending on property type, location, and lender policy.

7. What is the Loan-to-Value (LTV) ratio for LAP?

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LTV ratio is the percentage of property value that the lender finances. For residential properties, it’s typically between 60–70%, and for commercial properties, LTV ratio generally stands around 50–60%.

8. What is the tenure for Loan Against Property?

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Tenure usually ranges from 5 to 20 years, depending on lender policy and applicant age.

9. What documents are required for LAP?

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PNB Housing requires the following documents for a Loan Against Property:

For Salaried Applicants

•  Duly filled application form with photograph
•  Age proof: PAN Card, Passport, or any certificate from a statutory authority
•  Residence proof: Passport, Driving License, Telephone Bill, Ration Card, Election Card, or similar statutory certificate
•  Education qualification: Latest degree
•  Income proof: Last 3 months’ salary slips and Form 16 for the last 2 years
•  Bank statements: Last 6 months (salary account)
•  Processing fee cheque in favor of “PNB Housing Finance Ltd.”
•  Property documents: Photocopy of title documents and approved plan

For Self-Employed/Professionals

• Duly filled application form with photograph
•  Age proof & residence proof (same as above)
•  Education qualification: Latest degree (for professionals)
•  Business proof: Certificate & proof of business existence along with business profile
•  Income proof: Last 3 years’ Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant
•  Bank statements: Last 12 months
•  Processing fee cheque
•  Property documents: Title documents and approved plan

All documents must be self-attested.

10. How is EMI calculated for LAP?

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EMI depends on loan amount, interest rate, and tenure. Use an online EMI calculator for accurate estimates before applying.

11. What happens if I default on LAP?

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In case of default, the lender can initiate recovery proceedings and auction the pledged property under applicable laws. Always borrow within your repayment capacity.

12. Is my property ownership affected during the loan?

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No, you continue to retain ownership of the property and may use it as usual. However, the lender holds a legal charge over the property as security for the loan, which remains in effect until the loan is fully repaid.

13. What is the difference between LAP and Home Loan?

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Home Loan: Designed for the purchase or construction of residential property.

Loan Against Property (LAP): Enables you to raise funds by mortgaging an existing property. Unlike home loans, LAP offers flexible end-use and is not restricted to property-related purposes.

14. How long does it take to process a LAP?

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Processing time varies by lender and documentation completeness. With proper documents, approval can take 3–7 working days.

15. Can I get a top-up on my Loan Against Property?

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Yes, many lenders offer top-up loans on existing LAP accounts, subject to eligibility and property valuation.

16. What factors affect LAP eligibility?

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Key factors include:

• Property value and legal status
• Applicant’s income and repayment capacity
• Credit score (preferably 700+)
• Age and employment stability

17. Can I transfer my existing LAP to PNB Housing (Balance Transfer)?

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Yes, you can transfer your existing LAP from another lender to PNB Housing for better terms, subject to eligibility and documentation.

18. What is the minimum and maximum loan amount for LAP?

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PNB Housing offers Loan Against Property up to 70% of the property’s market value. While the exact minimum amount isn’t explicitly stated, LAP typically starts from ₹8 lakh, depending on property valuation and eligibility.

19. Can I mortgage a jointly owned property for LAP?

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Yes, jointly owned properties can be mortgaged, provided all co-owners agree and sign the loan documents.

20. Is insurance mandatory for LAP?

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Insurance is not mandatory, but PNB Housing strongly recommends insuring both the property and the loan repayment for customer safety. They have tie-ups with multiple insurers to provide property and loan protection plans. Participation is voluntary and not linked to loan approval.

21. Can I apply for LAP without income proof?

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Generally, income proof is required to assess repayment capacity. However, PNB Housing suggests alternatives if standard documents are unavailable:

• Apply with a co-applicant who has valid income proof.
• Maintain a strong banking history and relationship with the lender.
• Opt for a lower Loan-to-Value ratio to reduce risk. Approval without income proof is exceptional and subject to internal policy.

22. How to apply for Loan Against Property from PNB Housing Finance?

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You can apply for a Loan Against Property through any of these convenient options:

Online: Visit the PNB Housing website, go to the Loan Against Property section, and click on “Apply Now.” Fill in your details and submit the form.
• Branch: Visit the nearest PNB Housing branch with your documents.
Customer Care: Call the toll-free number or request a callback through the website.
After submission, PNB Housing will verify your documents, assess property value, and process your application for approval and disbursal.

23. Why should you choose PNB Housing Finance’s Loan Against Property?

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PNB Housing Finance offers several benefits:

•  High Loan Amount: Up to 70% of property value.
•  Competitive Interest Rates: Starting from 8.75*% p.a.
•  Flexible Tenure: Up to 20* years.
•  Quick Processing: Fast approval and disbursal.
•  Transparent Charges: No hidden fees.
•  Trusted Brand: Backed by decades of experience in housing finance.