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Building a home from the ground up is more than just a financial investment—it’s a journey toward fulfilling a life-long dream. With PNB Housing Plot Loan, you gain access to competitive interest rates, flexible repayment tenures, and expert guidance throughout the construction process.
Land today, home tomorrow! PNB Bank Plot Loans make it happen.
PNB Plot Loan Highlights
| Category | Highlights |
|---|---|
| Interest Rates | 9.50% p.a. onwards |
| Loan Amount | 70-75% of the property Value |
| Loan Tenure | Lengthy tenor period |
Suggested Read: Plot Loan vs. Home Loans
PNB Housing Plot Loan Interest Rates
Floating Interest Rates
| Loan Amount | Interest Rates |
|---|---|
| Upto 35 Lakhs | 9.50%* p.a. onwards |
| Above 35 Lakhs | 9.50%* p.a. onwards |
Check Out: PNB Home Loan Interest Rates – 2025
PNB Housing Plot Loan: Processing Fees and Other Charges
PNB takes processing fees to cover the cost of reviewing your documents and assessing your loan application. Besides processing fees, borrowers may also have to pay administrative costs, legal fees, and prepayment charges.
| Fee/Charge | Details |
|---|---|
| Penalty Charges | Up to 24% p.a. on unpaid EMI for the delayed period |
| Prepayment Charges | Nil |
| Processing Fees | 1% of the loan amount |
Suggested Read: Everything You Should Know About Home Construction Loans
PNB Plot Loan Eligibility Criteria
| Criteria | Description |
|---|---|
| Age | 21 years – 70 years |
| Nationality | Indian/ NRI/ PIO |
| Work Experience | Minimum 3 years work experience for salaried applicants and 5 years business continuity for self-employed |
| Credit Score | Salaried/Self-employed: 650+ |
Check Out: PNB Home Loan ELigibility Calculator
PNB Housing Plot Loan Documents Required
| Required Documents | Details |
|---|---|
| Application Form | Duly filled form with photograph. |
| Age Proof | PAN Card, Passport, or any other certificate from a statutory authority. |
| Residence Proof | Passport, Driving License, Telephone Bill, Ration Card, Election Card, or any other statutory certificate. |
| Educational Qualification | Latest degree certificate. |
| Salary Slips | Latest salary slips for the last 3 months. |
| Form 16 | For the last 2 years. |
| Bank Statements | Last 6 months’ salary account statements. |
| Processing Fee Cheque | In favor of ‘PNB Housing Finance Ltd.’ |
| Property Documents | Photocopy of title documents and approved plan. |
PNB Housing Plot Loan Tax Benefits
Tax benefits on plot loans depend on your intent:
- No tax benefits if the plot is purchased purely as an investment with no plans to build.
- Tax benefits apply only if you construct a residential property (e.g., house, villa) on the plot. Benefits cover both the plot loan and subsequent home loan for construction.
Key Tax Deductions
| Section | Deduction Type | Maximum Deduction | Key Details |
|---|---|---|---|
| 80C | Principal Repayment | Up to ₹1.5 lakh/year | – Includes stamp duty & registration fees if paid in the year construction is completed. – Joint Ownership: Both owners can claim, but combined total cannot exceed ₹1.5 lakh. |
| 24 | Interest Repayment | – Up to ₹2 lakh/year (self-occupied) – No upper limit (rented) | – Deduction applies after construction completion. – Pre-construction interest: Claimed over 5 years once construction starts. |
Conditions to Claim the Tax Benefits
- Construction timeline: You must complete construction within 5 years of taking the loan. Failure reduces the Section 24 deduction to ₹30,000/year.
- Loan conversion: Convert the plot loan to a home loan after construction by submitting a completion certificate and occupation certificate to the lender.
New Tax Regime (2025 Update)
The new tax regime (optional from FY 2025-26) does not allow deductions under Sections 80C or 24 for plot loans. Stick to the old regime to maximize benefits.
Suggested Read: Impact of Union Budget 2025 on Home Buyers
Conclusion
A PNB Housing Plot Loan is an excellent option for those looking to invest in land with the intention of building a home in the future. With competitive interest rates, flexible repayment options, and customer-focused services, PNB Housing makes it easy for you to take the first step toward building your dream home.
For more personalized financial guidance and assistance, consider exploring Credit Dharma for expert advice and loan options tailored to your needs.
Frequently Asked Questions
A PNB Housing Plot Loan is a type of loan that helps individuals finance the purchase of residential plots. It is specifically designed for those looking to buy land on which they can build a home in the future.
PNB Housing provides financing for up to 70-75% of the plot’s market value, based on the cost of the property and eligibility.
Yes, tax benefits can be availed if you begin construction on the purchased land within the stipulated time frame, as per Section 24(b) of the Income Tax Act.
The interest rates for PNB Housing Plot Loans start from 9.50% and vary based on your credit score and financial profile. Rates are floating and can change according to market trends.
PNB Housing offers flexible repayment tenure based on your loan amount, profile, and financial requirements. The exact tenure will be provided during loan approval.
Salaried individuals, self-employed professionals, and self-employed non-professionals with a minimum credit score of 650 are eligible. The borrower should also be less than 70 years old at the time of loan maturity.
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