Commercial Property Loan

Interest Rate

Note: The below mentioned Interest rates and Floating Rates

Credit Score (Any loan amount)	Up to 50 Lakhs (Starting from)	Above 50 Lakhs to 1 Crore (Starting from)	Above 1 Crore (Starting from)
NTC Cibil ≤ 170	10.95%	10.85%	10.75%
NTC Cibil > 170	10.85%	10.75%	10.65%
Upto 650	11.05%	10.95%	10.85%
> 650 to ≤ 700	11.05%	10.95%	10.85%
> 700 to ≤ 725	10.40%	10.30%	10.20%
> 725 to ≤ 750	10.05%	9.95%	9.85%
> 750 to ≤ 775	9.90%	9.80%	9.70%
> 775 to 799	9.80%	9.70%	9.60%
≥ 800 to 825	9.70%	9.60%	9.50%
≥ 825	9.00%	8.85%	8.75%

Fixed Rate for Non-Home Loan – 15.25%

For NHL Fixed or Fixed + Floating rates

a. Lifetime Fixed: This plan ensures a fixed rate for the loan tenure.

b. Three-Year Fixed, then Floating: This plan offers a fixed rate for the first three years, after which it will be converted to a floating rate as per the sanction norms.

All terms are subject to applicable regulations and internal guidelines.

*Rates of interest are subject to change at the sole discretion of PNB Housing.

**NTC: New to credit

PNB Housing offers floating rate of interest, linked to its benchmark rate PNBHFR

PNBRRR (Retail reference rate) for all New Loans (Housing/ Non Housing) – on boarded after May 09, 2022 – 12.65% p.a.

PNBRRR & Previous PNBHFR

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Frequently Asked Questions

How are commercial property loan interest rates determined by banks?

Banks as well as NBFCs set commercial property loan interest rates based on your credit score, loan amount, market conditions, and their internal pricing policies. They also review risk levels, property type, and repayment capacity. Floating and fixed-rate options differ, and rates may change depending on regulatory guidelines and lending benchmarks.

What are the best commercial loan interest rates available?

The best commercial loan interest rates usually start from 9.00% for credit scores of 825 or above. Lower-risk customers and strong financial profiles receive the most competitive terms. Rates vary by product, lender, and loan structure.

What factors impact the commercial property loan rate of interest?

Key factors affecting the commercial property loan rate of interest include:

Your credit score and repayment history.
Market benchmarks such as PNBRRR (PNB Housing Retail Reference Rate) and PNBHFR (PNB Housing Finance Base Rate)
Loan amount, loan type (fixed or floating), and overall risk assessment by the lender.

What is the difference between fixed and floating interest rates on commercial property loans and how should a borrower choose between them?

A fixed interest rate locks in a set percentage for the entire loan term, ensuring predictable monthly payments regardless of market changes, whereas a floating (or variable) interest rate fluctuates based on a benchmark (like the Repo Rate), meaning payments can rise or fall over time. A borrower should choose a fixed rate if they prioritize budget certainty and expect rates to rise, but opt for a floating rate if they want potentially lower initial costs and are comfortable with the risk of payments increasing in the future.