PNB Housing Plot Loan: Build Your Dream Home From the Ground Up

Estimated reading time: 6 minutes

Purchasing a plot of land is a significant step toward building your dream home. If you’re planning to buy a residential plot, a PNB Housing Plot Loan can help you finance the purchase. This loan is designed specifically for those looking to purchase land, with the intent to construct a home later. Whether you’re buying a plot in a real estate society, from development authorities, or through a direct allotment, PNB Housing makes the process easier with its attractive interest rates, flexible repayment options, and additional benefits.

In this blog, we will explore the key features, benefits, interest rates, and eligibility criteria for a PNB Housing Plot Loan, so you can make an informed decision when purchasing land.

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What is a Plot Loan?

A Plot Loan is a type of loan offered by PNB Housing to help customers purchase residential plots. Unlike a home loan, which is typically used to finance a house already constructed, a plot loan allows you to purchase land with the intention to build a home in the future.

You can purchase plots either from housing societies or directly from development authorities.

Features of PNB Housing Plot Loan

1. High Loan-to-Value Ratio (LTV)
   PNB Housing offers loans covering 70-75% of the plot’s market value, making it easier for you to finance your purchase without worrying about large upfront payments.
   
2. Tax Benefits
   You can avail of tax benefits under Section 24(b) of the Income Tax Act if you begin constructing a house on the purchased land within the required timeline.
   
3. Flexible Tenure
   PNB Housing provides a lengthy tenure for loan repayment, ensuring you can manage your finances more comfortably. The flexible repayment options allow you to tailor the loan to your specific financial situation.
   
4. Attractive Interest Rates
   Starting from 9.50%, PNB Housing offers competitive floating interest rates on plot loans, making them an affordable option for property purchases.
   
5. Government Subsidies
   Benefit from applicable government interest subsidies if eligible under specific housing schemes, ensuring additional savings during the loan tenure.
   
6. Online Services and Doorstep Assistance
   PNB Housing makes the process easier with online post-payment services and doorstep assistance, providing a hassle-free experience when it comes to managing your loan.
   

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Interest Rates for PNB Housing Plot Loan

Interest rates for PNB Housing Plot Loans are flexible and depend on your credit score and financial profile. Here’s a breakdown of the interest rates based on your credit score:

Credit Score	Salaried	Self-employed Professionals	Self-employed Non-professionals
>=825	9.50% to 10%	9.80% to 10.30%	9.80% to 10.30%
800-825	9.50% to 10%	9.90% to 10.40%	9.90% to 10.40%
775-799	10.10% to 10.60%	10.65% to 11.15%	10.65% to 11.15%
750-775	10.25% to 10.75%	10.80% to 11.30%	10.80% to 11.30%
725-750	10.55% to 11.05%	11.25% to 11.75%	11.25% to 11.75%
700-725	10.85% to 11.35%	11.55% to 12.05%	11.55% to 12.05%
650-700	11.25% to 11.75%	11.75% to 12.25%	11.75% to 12.25%
<650	11.25% to 11.75%	11.75% to 12.25%	11.75% to 12.25%

Fixed Rate for Home Loan: 15.75%

These rates are floating and subject to change at the sole discretion of PNB Housing, allowing you to benefit from market trends during the loan tenure.

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Eligibility Criteria for PNB Housing Plot Loan

To be eligible for a PNB Housing Plot Loan, you must meet the following criteria:

1. Profession

• The borrower should be a salaried individual, self-employed professional (SEP), or self-employed non-professional (SENP).
  

2. Credit Score

• A minimum credit score of 650 is required to qualify for competitive interest rates. As the credit score decreases, the interest rates tend to increase.
  

3. Age Limit

• The borrower should not be older than 70 years at the time of loan maturity.
  

4. Loan Tenure

• The tenure of the loan can affect the amount of loan eligibility. Longer tenures often allow for higher loan amounts.
  

5. Property Cost

• The cost of the property will also influence the loan amount as per PNB Housing’s LTV (Loan-to-Value) policies.
  

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Documents Required

To apply for a PNB Housing Plot Loan, you will need the following documents:

For Salaried Individuals:

• Duly filled application form with a passport-sized photograph
  
• Age proof (PAN card, passport, or any statutory certificate)
  
• Residence proof (passport, driving license, ration card, utility bills, etc.)
  
• Latest salary slips (3 months)
  
• Form 16 for the last 2 years
  
• Latest 6 months’ bank statements (salary account)
  
• Processing fee cheque in favor of ‘PNB Housing Finance Ltd.’
  
• Photocopy of title documents of the property, approved plan
  

For Self-employed Individuals:

• Duly filled application form with a passport-sized photograph
  
• Age proof (PAN card, passport, or any statutory certificate)
  
• Residence proof (passport, driving license, ration card, utility bills, etc.)
  
• Education qualifications (latest degree for professionals)
  
• Certificate and proof of business existence along with business profile
  
• Last 3 years’ income tax returns (self and business) with profit & loss accounts, balance sheets certified by a CA
  
• Latest 12 months’ bank account statements (self and business)
  
• Processing fee cheque in favor of ‘PNB Housing Finance Ltd.
  
• Photocopy of title documents of the property, approved plan
  

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Insurance and Customer Safety

PNB Housing emphasizes the importance of insuring your property and loan repayments to protect against unforeseen events during the repayment term. PNB Housing has partnered with several insurance companies to provide top-tier insurance products to its customers.

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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.

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Frequently Asked Questions