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As of September 27, 2025, PNB's home loan interest rates are floating and benchmarked to the RLLR at 8.35% (effective from June 9, 2025, following RBI's repo rate cut to 5.50%). Spreads range from -0.90% to +0.90% based on credit score, loan segment, and applicant category, resulting in effective rates of 7.45%-9.35%. A 5 bps concession applies under the PNB Monsoon Bonanza scheme until September 30, 2025, reducing starting rates further. Women borrowers receive an additional 5-10 bps relief, while PNB Pride scheme for government employees starts at 8.45% irrespective of CIBIL score. Rates are reset quarterly with RBI policy changes, ensuring alignment with market conditions.
| Loan Scheme/Segment | Starting Interest Rate (p.a.) | Applicable Tenure | Key Eligibility Notes |
|---|---|---|---|
| PNB Housing Loan (General) | 7.50% - 9.35% | Up to 30 years | CIBIL >750; up to 90% LTV |
| PNB Pride (Govt. Employees) | 8.45% - 9.25% | Up to 30 years | No CIBIL dependency; salary account holders |
| PMAY Subsidized Home Loan | 7.45% (post-subsidy) | Up to 20 years | EWS/LIG/MIG; income <₹18 lakh p.a. |
| Home Improvement/Extension Loan | 7.60% - 9.00% | Up to 15 years | Existing PNB customers; max ₹25 lakh |
| Balance Transfer Facility | 7.50% (min) | Remaining tenure | No prepayment penalty after 6 EMIs |
*Rates linked to RLLR (8.35%) + spread; subject to revision. Verify via PNB's rate calculator on pnbindia.in.
PNB assesses home loan eligibility to assign the lowest applicable interest rates, focusing on income, credit profile, and property value as per September 2025 guidelines. Salaried applicants need ₹15,000 monthly income and 2 years' experience; self-employed require ₹2 lakh annual ITR with 3 years' vintage. CIBIL score >700 secures base rates, with scores 650-699 adding 0.25-0.50% spread. Loan-to-value (LTV) up to 90% for <₹30 lakh loans influences rates via risk assessment. PMAY applicants (income <₹18 lakh) qualify for subsidized rates at 3-6.5% effective post-credit. Co-applicants can lower spreads by 0.10% through combined profiles. Use PNB's online eligibility tool for rate simulations.
| Category | Minimum Income Requirement | CIBIL Score Impact on Rate | Max LTV Ratio |
|---|---|---|---|
| Salaried (Private/Public) | ₹15,000 p.m. | >750: Base; 700-749: +0.10% | 90% (<₹30L loan) |
| Self-Employed | ₹2 lakh p.a. | 650-699: +0.50%; <650: Case-by-case | 80% (>₹75L loan) |
| Government Employees (PNB Pride) | ₹20,000 p.m. | Irrespective; concession 0.20% | 95% |
| PMAY EWS/LIG | <₹6 lakh p.a. | Relaxed; subsidy-linked | 95% |
PNB maintains low ancillary costs for home loans in 2025, with processing fees waived until March 31, 2025, under promotional schemes—saving up to ₹17,500 on ₹50 lakh loans. Standard fee is 0.35% (min ₹2,500, max ₹15,000), lower than industry averages. Legal and valuation charges are ₹5,000-₹10,000, bundled for PMAY. No prepayment penalties on floating rates after 6 EMIs, and stamp duty varies by state (4-7%). This structure reduces effective borrowing costs by 0.05-0.10% compared to private banks.
| Charge Type | Fee Amount | Waiver/Notes (Sep 2025) |
|---|---|---|
| Processing Fee | 0.35% (₹2,500 - ₹15,000) | Fully waived till Mar 31, 2025 |
| Legal Verification | ₹5,000 - ₹7,500 | Included for loans <₹50 lakh |
| Technical Valuation | ₹3,000 - ₹5,000 | Property-specific; waived for PMAY |
| CERSAI Registration | ₹500 | One-time for security |
| Prepayment/Foreclosure | Nil (after 6 EMIs) | Floating rate only |
PNB's EMI for home loans uses the standard formula: EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P is principal, R monthly rate, N months. The bank's online calculator integrates RLLR updates for accurate forecasts. For a ₹50 lakh loan at 7.50% over 20 years, EMI is ₹41,200, with total interest ₹48.88 lakh—5% lower than at 8.50%. Extending to 30 years drops EMI to ₹35,000 but adds ₹66 lakh interest. PMAY subsidies can cut effective EMI by 20-30% for eligible groups.
Sample EMI table for ₹50 lakh loan (Sep 2025 rates):
| Scheme/Rate (p.a.) | Tenure (Years) | Monthly EMI (₹) | Total Interest (₹) |
|---|---|---|---|
| General @7.50% | 20 | 41,200 | 48,88,000 |
| General @7.50% | 30 | 35,000 | 76,00,000 |
| PNB Pride @8.45% | 20 | 42,800 | 52,72,000 |
| PMAY @7.45% (subsidized) | 20 | 40,900 | 48,32,000 |
*Tax benefits under 80C (₹1.5 lakh principal) and 24(b) (₹2 lakh interest) reduce net outflow by 25-30%.
PNB's 7.50% starting rate in September 2025 undercuts HDFC's 7.90% by 0.40%, saving ₹2.5-3 lakh interest on ₹50 lakh over 20 years, while matching SBI closely at 7.50%. BOI leads at 7.35% but with higher fees; PNB excels in waivers and govt. employee concessions. Public sector stability favors PNB for long-term borrowers, though private banks like HDFC process faster (7 vs. 15 days).
| Bank | Starting Rate (p.a.) | Max Tenure (Years) | Processing Fee | Best For |
|---|---|---|---|---|
| PNB | 7.50% | 30 | 0.35% (waived till Mar 2025) | Govt. employees, PMAY |
| SBI | 7.50% | 30 | Up to ₹10,000 | Large loans, women (0.05% off) |
| HDFC | 7.90% | 30 | 0.25%-1% (max ₹10K) | Quick digital approval |
| BOI | 7.35% | 30 | 0.25% (max ₹20K) | Low-income groups |
PNB's home loans include free insurance cover up to ₹20 lakh and doorstep documentation in 2025, unique for rural branches. Refinance options cover switching costs up to ₹5,000. Apply via pnbindia.in or PNB ONE app with KYC (Aadhaar/PAN) and income proofs; approvals in 10-15 days. Lock rates during Q4 2025 for potential 0.05% festive discounts. For PMAY, link Aadhaar for instant subsidy computation.
Download the PNB Home Loan Application Form PDF and Interest Rate Structure for details. These features make PNB a cost-effective choice for 2025 home financing.
