Loan against residential property for senior citizens from Punjab National Bank

A loan against your self-occupied, residential property to pay off your debts.

Punjab National Bank PNB Baghban (Reverse Mortgage Loan)

This loan helps senior citizens who want to meet their living expenses or supplement pension income by pledging their self-occupied, residential property for this loan get financial assistance. This loan scheme can also be used for the repayment of an existing loan taken for the residential property to be mortgaged or to consolidate debts.

Features of PNB Baghban – A Scheme for House-Owning Senior Citizens

Why this Loan?

  • The Punjab National Bank PNB Baghban Reverse Mortgage Loan helps senior citizens get access to funds by mortgaging their self-occupied, residential property and convert it into liquid cash flows to meet their living expenses, personal needs, medical expenses or home renovation/repair/extension expenses
  • They can also avail this scheme as a consolidation loan and pay off high-interest credit card debts and loans

Loan Amount

  • The maximum loan amount offered under this loan scheme is Rs. 1 crore


  • The interest rate applicable to this loan is defined as the sum of two factors: Repo Linked Lending Rate (RLLR) and a Spread factor of 2.75%. As of October 2020, the RLLR of PNB is 6.80% bringing the effective interest rate at 9.75%


  • The loan becomes payable after 15 years. Borrowers can also choose for prepayment of the loan
  • In the case of death of the borrower, the loan becomes due after six months and the legal heirs of the borrower can settle the loan along with cumulated interest without sale of the property


  • The borrower must be an Indian citizen
  • The age of the borrower must be above 60 years
  • Only self-acquired, self-occupied residential property (independent house or flat) which is free from encumbrance and used as a permanent primary residence is eligible for this loan
  • The residual life of the residential property must be at least 20 years

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 20% of the loan amount as margin for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Security Needed

  • The bank accepts equitable mortgage of residential property in the favour of Punjab National Bank

Processing Charges

  • The bank charges 0.35% of the total amount up to Rs. 15,000 for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income proof, income tax assessment or IT return documents of the borrower
  • Property related documents

Reference Facts

  • Punjab National Bank Website: and (net banking)
  • Headquarters: New Delhi, India
  • Call Centre Toll-Free Number: 1800 180 2222