Punjab National Bank PNB Personal Loan Scheme for Public

Punjab National Bank PNB Personal Loan Scheme for Public

This loan helps borrowers to get funds to meet their urgent financial needs including expenses for a child’s wedding, domestic and foreign travel, medical emergency, child’s education, etc. This personal loan can also be repurposed into a consolidation loan to pay off their high-interest credit card debts and loans. Salaried employees of government organisations, public sector units, private sector companies and institutions, etc. drawing salary through PNB are eligible for this loan.

Features of PNB Personal Loan Scheme for Public

Why this Loan?

  • The Punjab National Bank PNB Personal Loan for Public is meant for permanent employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies
  • The applicant must have at least 2 years of work experience
  • The borrowers must have a salary account with PNB to be eligible for this loan
  • This collateral-free loan is offered as a term loan or an overdraft
  • There are no pre-payment charges for this loan and the loan cannot be used for speculative reasons

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to a maximum of 24 times the gross monthly salary of the salaried employees or Rs. 20 lakh, whichever is less

Interest

The interest rate applicable for PNB’s personal loan is defined as the sum of three factors:

  • Repo Linked Lending Rate (RLLR): 9.00%, as of April 2023
  • BSP of 0.25%
  • Spread Factor that ranges depending on the applicant’s credit score

The interest rates applicable for different categories of borrowers are given below for your reference:

  • Govt. Employees (Drawing Salary through Bank or Central Govt. Gazetted Officers): As of April 2023, the effective interest rates are as below:
    • Applicants with a credit score of 800 or above (spread of 2.50%): 11.75%
    • Applicants with a credit score of 750-799 or with no credit history (spread of 3.50%): 12.75%
    • Applicants with a credit score from 650 to 749 (spread of 4.50%): 13.75%
    • Applicants with a credit score less than 650 (spread of 5.00%): 14.25%
  • Govt. Employees (Not Drawing Salary through Bank) and Corporate Employees (Drawing Salary through Bank): These have a spread of 3.50% to 7.00%. The effective interest rates are:
    • Applicants with a credit score of 800 or above (spread of 3.50%): 12.75%
    • Applicants with a credit score from 750 to less than 800 or with no credit history (spread of 4.50%): 13.75%
    • Applicants with a credit score from 650 to 749 (spread of 6.50%): 15.75%
    • Applicants with a credit score less than 650 (spread of 7.00%): 16.25%
  • Employees Under Check-Off Facility: These have a spread of 5.00% to 7.70%. The effective interest rates are:
    • Applicants with a credit score of 800 or above (spread of 5.00%): 14.25%
    • Applicants with a credit score from 750 to less than 800 or with no credit history (spread of 5.50%): 14.75%
    • Applicants with a credit score from 650 to 749 (spread of 7.20%): 16.45%
    • Applicants with a credit score less than 650 (spread of 7.70%): 16.95%
  • Loans to Defence/Paramilitary Personals Drawing Salary via Bank incl. Those Under Rakshak Plus Scheme: A spread of 2.15%, brings the effective interest rate to 11.40%

Repayment

  • Term Loan: This loan must be repaid within 6 years (72 EMIs) or within the remaining period of service, whichever is earlier
  • Overdraft: The Overdraft Limit has to be adjusted within the remaining period of service or within 6 years (72 months) by reducing Drawing Power equivalent to EMI amount at the beginning of every month
  • The maximum time limit for defence and paramilitary personnel is 5 years (i.e. 60 EMIs)

Eligibility

  • Permanent/confirmed employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies with at least two years of service
  • The salary of the employee should be routed through the Savings Bank account at the PNB branch where this loan is sanctioned

Security Needed

  • This is an unsecured loan, meaning you don’t have to offer any collateral to get the loan
  • The bank may ask for a suitable third-party guarantee to secure this loan

Processing Charges

  • The bank charges 1.00% of the loan amount for processing this loan. However, defence personnel do not have to pat processing charges on 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/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns

Reference Facts

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