Big Milestone of my life has been achieved. It took collective efforts of 2 generations, young and old. However, it still wasn't enough to acquire the home by ourselves. Yourself, Vivek and PNBHF team's timely entry to the situation helped us complete our home buying mission. You reached me immediately when I logged a request on your portal, documents were collected, process was explained very well and disbursement was also very convenient. Seller side was also not expecting this to be a smooth affair, but even they were surprised how smooth everything was done. I must admit, another competing bank also reached out to me offering lower ROI, however, looking at the relationship we built and your response impressed me and hence, as a reciprocal gesture, I had to get the home loan from your bank. Thank you once again. Hope to have a pleasant experience during the EMI and prepayment journey for my home loan.
Home Loan Customer of Ghatkopar Branch – Mumbai“Thanks for providing excellent support and exhibiting swiftness in getting my Home Loan approved and disbursed in 5 working days. Really appreciate the efforts in making this happen in such a short time span! Hats off to the PNB HFL team.”
Ved Bhushan Gulati Project Director with an MNCThank you for the support extended for sanctioning my loan for purchase of Plot in a swift and smooth manner. Really appreciate the way things were handled and in a short span of time. I will definitely recommend you to any of my friends/well wishers looking for a home loan.
P Brian Antony Asst.General Manager with a Public sector unitThis is to place on record my appreciation for highly prompt and efficient service provided by PNB Housing Finance in not only sanctioning House loan for a property but also in timely disbursal of the first part of the loan. I would like to compliment the entire team.
Naveen Prakash Chief Vigilance Officer with a public sector unitThank you very much for helping me to get a home loan and for a rapid action. I really appreciate the prompt responses and immediate delivery. I like the services and will refer to my friends who might need a home loan
Rushikesh Vanarse Software Product Manager with an IT companyI wish to express my sincerest thanks and heartiest appreciation for your great customer orientation, supportive nature and diligence which I experienced during my home loan processing.
I must say that such professionalism makes public confidence soar high in favour of PNB HFL in today’s world of stiff competition.
Satya Tiwari Commercial Director, GSK Asia Pvt. Ltd.I would like to take this opportunity to thank you for all for your help during the loan sanctioning process across the last two weeks.
Based on my experience interacting with you over the past few weeks, I can confidently state that PNB Housing has certain unique qualities that will surely propel you forward. The strongest one being your ability to be a trusted business advisor to your customer. You have an emotional quotient that enables you to go beyond transactional relationships and this will stand you in good stead in your current job.
I especially appreciate the fact that you understood that I was travelling tomorrow and you were open to coming home so late in the night tonight to collect the required documents. In doing this, not only do you improve the bonds with your potential customer, but also you project a superior image of PNB Housing Finance
Thanking you once again for all your help and wishing you all the best in your future endeavours.
Tone Thomas General Manager - Executive Education, S P Jain School of Global ManagementRecently I had applied for Home Loan from PNB Housing Fin. Ltd., Nagpur to purchase a flat. My case was processed very speedily & to everybody’s surprise I got the sanction letter from your company in less than two weeks.
Generally customers have a perception of PSU institutions where they feel that delay is inbuilt part of the process, but your team has negated the misconception. I want to place on record the effort taken by your team & particularly Sh. Rajesh Belsare, who even at odd hours visited my office & residence to collect the documents etc., and also helped to sort out various legalities so to process the case faster. I also saw that everybody in your office was more than eager to provide information relevant to my case and guide accordingly.
I congratulate you & your team who has shown that PSU institutions are as efficient as any professionally managed private financial institutions, to serve the customers.Abhishek Srivastava
Ajay R. Sawatkar Sr. General Manager, BSNL, Yavatmal Telecom, District YavatmalI would like to take a few minutes to appreciate the quality of service provided by PNB HFL during our recent home loan application. There were tight deadlines with the developer and it had been a lengthy process in the past as a NRI. But, from the outset PNB HFL- Mr Devendra Singh and his team were very prompt and moved things quickly. Many documents were required and reviewed during the home loan application. But everything was done in a speedy and transparent manner. The status updates right from initial application through the underwriter’s query were helpful. While signing the final documents, branch Manager Mr Nilay Bhargava, courteously assured us of the first disbursement within a short time frame. It was a pleasure to see that his team were committed to their word and delivered the first cheque to the builder within the schedule, as promised. Mr Devendra Singh’s customer service through the whole process was quite exemplary.
I have worked with many mortgage lenders in India and the UK. The level of service and diligence experienced with PNB HFL is among the top few and it has continued through the 3 rd disbursement. I will gladly recommend this team at PNB HFL to friends and colleagues.
I wish your team continued success at PNB HFL.
Abhishek Srivastava Director, Financial Engineering, Chicago Trading CompanyI would have sent this mail to the Chairmen or CEO’s of PNB Housing if I would have known their email ids’. I just want to convey my regards and thank to the entire Chandigarh PNB HFL team for their customer centricity. I am short of words while writing this email, but it will be my advocacy to recommend PNB HFL.
The bridge to connect myself to PNB Housing was Mr. Rahul Taneja and it was my first ever instance to experience any kind of loan, but Mr. Rahul Taneja took away my worries, which I used to have. His polite, polished and professional way to deal with every client is awesome and I will describe him as a true asset to the organization.
During my all interactions with the organization I could always sense a feeling of respect and value for the customer and the same was remarkable with all of my interactions with Ms. Ruchi Gupta. I really appreciate her timeliness and cooperative way to deal with a customer.
A true customer service expert Ms. Sonia, her welcoming gesture is more than a demand draft. She is undoubtedly more than prompt in replying to any email, resolving an issue or reverting any query of the customer.
Above all, Mr. Sanjai Singh guided like a guardian and not like a professional. I remember the instance when I asked him to pre-close my loan, rather than offering me lucrative deals he guided me like an elder brother
“YOU ALL HAVE HELPED ME TO MAKE MY HOME”
You are a wonderful Team. Best of Luck.
Harbaksh Singh Manager, Godrej & Boyce Mfg. Co. Ltd.Home Loan can be confusing. Got questions? No problem! We are here to help you every step of the way. At PNB Housing Finance, We strive to provide speedy solution for all your home finance queries.
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What is your Current Income Status? I am Salaried I am Non-Salaried/Self Employed
The process of buying a home for the first time can be an overwhelming experience. If you are looking to buy a house with a home loan, keep the following pointers in mind.
Assess your financial position before applying for a Home Loan
Compare interest rates and use an EMI calculator to make informed loan decisions
Research government schemes for possible concessions and lower interest rates
Determine if a down payment is required and ensure you have sufficient funds for it
Choose a Home Loan tenure that fits your repayment capacity, balancing EMIs and interest payments
At PNB Housing Finance Limited, we offer a range of loan options specifically tailored to meet the needs of first-time home buyers. We focus on making the home-buying process hassle-free and convenient for our customers.
Address proof: Aadhar card, Passport, Driving Licence,Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority
Age Proof: PAN Card, Passport, Any other Certificate from Statutory Authority
Income Proof: Includes salary slips of last 3 months, Form 16 for last 2 years, and latest 6 months bank statement
Age: All salaried applicants must be above the age of 21 years at the time of commencement of loan. Additionally, your age should not exceed 70 years at the time of the maturity of the loan.
Residency: You should be a permanent resident of India.
Work experience: You should have a minimum work experience of 3 years.
Salary: Minimum salary required INR 10,000 per month or more
Loan amount: INR 8 lakh onwards
Tenure: Up to 30 years
LTV: Up to 90%
Required Credit Score: 611+
Home Loan is a lengthy financial commitment, and life is uncertain. Home Loan insurance can cover your outstanding loan amount and ensure financial security for your dependents if you fail to pay off the loan for any reason or meet an untimely demise. PNB Housing suggests you opt for a home insurance policy when you take a Home Loan.
PNB Housing Finance knows that constraints such as limited funds and a lengthy house loan process might make purchasing your dream home difficult. Fortunately, the solution to both concerns is only a few mouse clicks away. You may now apply for a home loan online with PNB Housing Finance in minutes. PNB Housing makes it easy to apply for a house loan by making the procedure simple and quick.
Introducing ACE, a completely digital home loan process that allows you to quickly check your loan eligibility and submit your loan application. Simply have scanned copies of your needed paperwork on hand to begin your path towards your dream home.
To buy a property with a home loan, you need to provide some important documents to prove that the property exists, has been sold legally, and owns it. These documents are necessary to get the loan.
Address proof: Aadhar card, Passport, Driving Licence, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority.
Age Proof: PAN Card, Passport, Any other Certificate from Statutory Authority
Income Proof: Pertaining to business and ITR, such as proof of business existence, last 3 years income tax returns, accountant-certified balance sheets, and last 12 months bank account statement
Financial institutions and banks charge Home Loan processing fees, which cover tasks like document verification, pre-sanction inspection, legal operations, etc.
The Home Loan processing fee, or the application fee, is a charge levied by the financial institutions as a part of the loan processing. It's important to know that while some institutions charge this fee one time, others charge it in two parts - one at the time of login and the balance at the time of disbursement. Therefore, to make an informed decision, the applicant must know their chosen lender's Home Loan processing charges levied.
Age: All self-employed applicants must be above the age of 21 years at the time of commencement of the loan. Additionally, your age should not exceed 70 years at the time of the maturity of the loan.
Residency: You should be a permanent resident of India.
Work experience: You should have at least 3 years of business continuity.
Loan Amount: INR 5 Lakh onwards
Tenure: Up to 20 years
LTV: Up to 90%
Additional: You apply for income tax returns.
Minimum credit score of 611 is needed to apply for a home loan.
Home Loan is a lengthy financial commitment, and life is uncertain. Home Loan insurance can cover your outstanding loan amount and ensure financial security for your dependents if you fail to pay off the loan for any reason or meet an untimely demise. PNB Housing suggests you opt for a home insurance policy when you take a Home Loan.
PNB Housing Finance knows that constraints such as limited funds and a lengthy house loan process might make purchasing your dream home difficult. Fortunately, the solution to both concerns is only a few mouse clicks away. You may now apply for a home loan online with PNB Housing Finance in minutes. PNB Housing makes it easy to apply for a house loan by making the procedure simple and quick.
Introducing ACE, a completely digital home loan process that allows you to quickly check your loan eligibility and submit your loan application. Simply have scanned copies of your needed paperwork on hand to begin your path towards your dream home.
You can now enjoy the convenience and ease of our customer care solutions at your fingertips. You can get a variety of services, such as rate conversion and part payment, all online and without visiting a branch. With our safe and secure online services, you may do maximum of your transactions with confidence and without stress. So prepare to benefit from hassle-free home loans with PNB Housing.
Pay your dues with ease using quick and smart online payment methods. Provide your loan account number and make your payment using your preferred method: Net Banking, Debit Card, or UPI.
Payment accepted through
By using our conversion option, you can lower the current rate of interest on your home loan and non-home loan. Through our conversion feature, you can reduce the relevant rate of interest on the loan (by adjusting the spread or converting between schemes).
You can borrow money against the value of your property with a quick top up without going through the lengthy home loan application process. This implies that you can easily and swiftly obtain the money you require.
You might wish to think about getting a quick top-up for your current home loan for a variety of reasons. You may, for instance, utilise the funds to
Renovate your home
Consolidate Debt
Whatever your reason, an instant top up can be a great way to get the money you need when you need it.
A second house loan is an excellent choice for those wishing to invest in real estate or produce additional income. We provide affordable interest rates and more flexible eligibility requirements, and borrowers can receive up to 90% of the house's construction or purchase price. Furthermore, tax breaks on second home loans are available under Sections 80C and 24 of the Income Tax Act. Section 80C allows for a maximum deduction of 1.5 lakh on principle payments, whereas Section 24 allows for a maximum deduction of 2 lakh on interest payments. Before applying for a second home loan, it's critical to understand the intricacies of these perks and utilise an EMI calculator to determine eligibility.
Address proof: Aadhar card, Passport, Driving Licence,Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority
Age Proof: PAN Card, Passport, Any other Certificate from Statutory Authority
Income Proof: Includes salary slips of last 3 months, Form 16 for last 2 years, and latest 6 months bank statement
Age: All salaried applicants must be above the age of 21 years at the time of commencement of loan. Additionally, your age should not exceed 70 years at the time of the maturity of the loan.
Residency: You should be a permanent resident of India.
Work experience: You should have a minimum work experience of 3 years.
Salary: Minimum salary required INR 10,000 per month or more
Loan amount: INR 8 lakh onwards
Tenure: Up to 30 years
LTV: Up to 90%
Required Credit Score: 611+
Home Loan is a lengthy financial commitment, and life is uncertain. Home Loan insurance can cover your outstanding loan amount and ensure financial security for your dependents if you fail to pay off the loan for any reason or meet an untimely demise. PNB Housing suggests you opt for a home insurance policy when you take a Home Loan.
PNB Housing Finance knows that constraints such as limited funds and a lengthy house loan process might make purchasing your dream home difficult. Fortunately, the solution to both concerns is only a few mouse clicks away. You may now apply for a home loan online with PNB Housing Finance in minutes. PNB Housing makes it easy to apply for a house loan by making the procedure simple and quick.
Introducing ACE, a completely digital home loan process that allows you to quickly check your loan eligibility and submit your loan application. Simply have scanned copies of your needed paperwork on hand to begin your path towards your dream home.
The process of buying a home for the first time can be an overwhelming experience. If you are looking to buy a house with a home loan, keep the following pointers in mind.
Assess your financial position before applying for a Home Loan
Compare interest rates and use an EMI calculator to make informed loan decisions
Research government schemes for possible concessions and lower interest rates
Determine if a down payment is required and ensure you have sufficient funds for it
Choose a Home Loan tenure that fits your repayment capacity, balancing EMIs and interest payments
At PNB Housing Finance Limited, we offer a range of loan options specifically tailored to meet the needs of first-time home buyers. We focus on making the home-buying process hassle-free and convenient for our customers.
To buy a property with a home loan, you need to provide some important documents to prove that the property exists, has been sold legally, and owns it. These documents are necessary to get the loan.
Address proof: Aadhar card, Passport, Driving Licence, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority.
Age Proof: PAN Card, Passport, Any other Certificate from Statutory Authority
Income Proof: Pertaining to business and ITR, such as proof of business existence, last 3 years income tax returns, accountant-certified balance sheets, and last 12 months bank account statement
Financial institutions and banks charge Home Loan processing fees, which cover tasks like document verification, pre-sanction inspection, legal operations, etc.
The Home Loan processing fee, or the application fee, is a charge levied by the financial institutions as a part of the loan processing. It's important to know that while some institutions charge this fee one time, others charge it in two parts - one at the time of login and the balance at the time of disbursement. Therefore, to make an informed decision, the applicant must know their chosen lender's Home Loan processing charges levied.
Age: All self-employed applicants must be above the age of 21 years at the time of commencement of the loan. Additionally, your age should not exceed 70 years at the time of the maturity of the loan.
Residency: You should be a permanent resident of India.
Work experience: You should have at least 3 years of business continuity.
Loan Amount: INR 5 Lakh onwards
Tenure: Up to 20 years
LTV: Up to 90%
Additional: You apply for income tax returns.
Minimum credit score of 611 is needed to apply for a home loan.
Home Loan is a lengthy financial commitment, and life is uncertain. Home Loan insurance can cover your outstanding loan amount and ensure financial security for your dependents if you fail to pay off the loan for any reason or meet an untimely demise. PNB Housing suggests you opt for a home insurance policy when you take a Home Loan.
PNB Housing Finance knows that constraints such as limited funds and a lengthy house loan process might make purchasing your dream home difficult. Fortunately, the solution to both concerns is only a few mouse clicks away. You may now apply for a home loan online with PNB Housing Finance in minutes. PNB Housing makes it easy to apply for a house loan by making the procedure simple and quick.
Introducing ACE, a completely digital home loan process that allows you to quickly check your loan eligibility and submit your loan application. Simply have scanned copies of your needed paperwork on hand to begin your path towards your dream home.
A home loan balance transfer seeks to transfer your outstanding balance to PNB Housing with a favourable interest rate. You can save money on monthly payments and overall interest by having a solid credit score, a consistent income, and papers such as a repayment track record and property paperwork. The procedure consists of applying, submitting paperwork, paying fees, and receiving approval.
We offer loans against the mortgaging of existing residential/commercial properties in our branch locations for legitimate purposes such as business expansion, education, medical expenses, etc. We have a wide range of non-home loan products, a pan-India branch network, door-step services, excellent post-disbursement services, ethical practices, and various repayment options. Our experienced team ensures customer satisfaction and loan amount enhancement in case of cost escalation.
Duly filled Application Form with Photograph
Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)
Education Qualifications - Latest Degree
Latest Salary-slips for 3 months
Form 16 for last 2 years
Last 6 months Bank Statements(salary account)
Processing Fee Cheque in favour of 'PNB Housing Finance Ltd.
Photocopy of Title Documents of the Property, Approved Plan
Duly filled Application Form with Photograph
Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)
Education Qualifications Latest Degree (for professionals)
Certificate & Proof of business existence along with Business Profile
Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant
Last 12 months Bank Account Statements (self & business)
Processing Fee Cheque in favour of PNB Housing Finance Ltd.
Photocopy of Title Documents of the Property, Approved Plan
The financial institution bank charges a processing fee when you apply for a Loan against Property. This one-time fee covers the cost of processing your loan application.
Some financial institution banks may charge this fee in two parts. The processing fee is usually a percentage of the total loan amount. However, the amount may vary depending on which lender bank you choose.
For example, PNB Housing charges up to 1%* processing fees of the loan amount exclusive of GST & other taxes, if any.
You should either be a salaried employee or a self-employed professional/ non-professional.
Your age should not be more than 60 years if you are a salaried employee and not more than 65 years if you are a self-employed professional/ non-professional, at the time of loan maturity.
PNB Housing, for the safety and extended comfort of its customers, suggests that they should get their property and loan repayments insured to overcome an unfortunate event during the re-payment term of the loan.
For the convenience of customers, PNB Housing has tied up with various insurance companies to offer best-in-class products and services at their doorstep.
We evaluate your eligibility by considering income, tenure, other sources of monthly revenue, pre-existing debts, and EMIs.
Home Loan AffordabilityA calculator which helps you gauge the value of the property you can buy and your eligible home loan amount.
Sales Manager, PNB Housing
Mr. Girish Kousgi, MD & CEO, on Financial Results for the quarter ended 30th June 2024 | CNBC TV18
Mr. Girish Kousgi, MD & CEO, on Financial Results for the quarter ended 30th June 2024 | CNBC Awaaz
CNBC AwaazMr. Girish Kousgi, MD & CEO, on Financial Results for the quarter ended 30th June 2024 | BT TV
Mr. Girish Kousgi, MD & CEO, on Q4 and Annual FY24 Financial Results | ET NowMr. Girish Kousgi, MD & CEO, on Q4 and Annual FY24 Financial Results | NDTV Profit
NDTV ProfitStep 1:Submit your loan application along with required set of documents.
Step 2:Your application would be assessed on the basis of various eligibility and funding norms.
Step 3:A property valuation and title check may be carried out by the company representative to determine the property value and legal clearance of the property to arrive at the loan amount.
Step 4:Based on the internal and regulatory guidelines, PNB Housing may approve or reject the loan application.
Step 5:Submission of the original property documents are required along with signing of agreements, handing over of registered property papers and submission of post-dated cheques/ECS.
Step 6:Upon finding all the documents in order, PNB Housing will disburse the loan amount to the developer/contractor based on the progress of construction. The EMI/Pre-EMI will commence after the disbursement.
Am I eligible for a Home Loan?You are eligible for a loan if you are an Indian citizen or a person of Indian Origin and are a salaried/ self- employed professional/ a businessman. Your loan eligibility will be determined by PNB HFL on the basis of professional income, age, qualifications, number of dependents, co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings and prior credit history. Further, the loan eligibility will also be dependent on the value of property selected by you.
What percentage of property value can be funded?We can fund up to 90% of the property value in case of Home Loan and up to 60% in case of Loan Against Property. However, PNB HFL funding norms may change from time to time and from property to property or based on the loan amount.
I purchased a property 3 months back; can i get a Home Loan?Yes, you can avail re-finance at applicable Home Loan rate within 6 months from the date of property purchase.
What is EMI and Pre-EMI?Your loan is repaid through Equated Monthly Instalments (EMI), which includes principal and interest component. EMI repayment starts from the month subsequent to the month of final disbursement. Pre-EMI Interest is the simple interest, payable every month till the time loan amount is not fully disbursed.
Who can open a FD account with PNB Housing?Fixed Deposit will be accepted from Resident Individual/ HUFs /Public/Private companies /Non-Resident Indians/ Co-operative Societies / Co-operative Banks/ Trust / Association of person, PF Trust etc.
How is a deposit made?A prospective depositor has to fill prescribed “Deposit Application Form” along with all KYC documents and an accounts payee cheque/ Demand Draft/ NEFT/ RTGS in favour of PNB Housing Finance Limited. Deposit applications are available at all PNB Housing branches and with its authorized brokers. Deposit forms could be downloaded from company’s website –www.pnbhousing.com.
Does the property need to be insured?Property insurance is mandatory in order to protect your property against uncertainties like earthquake, fire or any damage and destruction due to natural and man-made calamities, during the tenure of the loan.
What is the minimum amount to place a FD with PNB Housing?Cumulative Deposit – INR 10000
Non-Cumulative Deposit –
Monthly Income Plan – INR 100000
Quarterly Income Plan – INR 50000
Half yearly Income Plan– INR 20000
Annual Income Plan – INR 20000
If a customer is a resident Indian individual/entity/trust the minimum tenure is 1 year and maximum tenure is 10 years.
Will a customer get any receipt of deposit with PNB Housing?Yes, PNB Housing will issue FD receipt of the money deposited by a customer with us.
Are Know Your Customer (KYC) documents required for all depositors? Checklist of Know your Customer (KYC) Compliance?In terms of the Prevention of Money Laundering Act, 2002, the rules notified there under and KYC guidelines issued by the Reserve Bank of India (RBI), every depositor is required to comply with the KYC requirements by submitting the following document:
Can a loan be obtained from PNB HFL against the security of a PNB HFL Fixed Deposit?Yes, loan facility is available at the discretion of PNB Housing, which can be availed only after three months from the date of deposits and up to 75% of the deposit amount subject to certain terms and conditions. Interest rate on such loans will be 2% higher than the rate of interest on the deposit being paid to depositor.
What is meant by moratorium period?Moratorium means a payment holiday. This means that during the period of moratorium no payment has to be made by the customer to the lending institution (PNBHFL). The interest which is accrued for the moratorium period shall become payable after the end of moratorium period. Thus this is like a deferment of payment.
What is the material impact of the extension of moratorium?All loan customers can now avail the moratorium on EMIs payable till August 2020. If customer chooses, he will not be required to pay the EMIs of June, July, August 2020. The repayment will re-start from September 2020 onwards :
Please note that like in Moratorium 1.0, the extension of moratorium does not mean “EMI Waiver” as the interest will continue to accrue on the unpaid principal. The accrued interest will be added to the principal outstanding and revised EMI will be payable on the increased principal from September 2020.
What is the impact of moratorium on the terms of the loan?The impact on terms of the loan is explained below:
Supreme Court has pronounced a judgement in March 2021 wherein it has directed that compound / penal interest charged on loans during the moratorium period be refunded. Accordingly RBI directed financial institutions to refund difference between compound and simple interest charged on loan accounts which availed moratorium period of March 2020 to August 2020. Indian Banks Association (IBA) laid down the detailed guidelines in April 21 which are to be followed by institutions.
As part of the COVID-19 package announced by RBI in March 2020 (and extended in May
2020), customers who had a loan outstanding as on 29th February 2020 which was less than 90 DPD as on 29th February 2020 were given a relief of one time moratorium of repayment for a cumulative period of6 months i.e. from March 2020 to August 2020. During the moratorium period, the customers were exempt from making any payment to the lender. During moratorium, the lenders compounded the interest due on a monthly basis. Thus, the loan outstanding at the end of moratorium period included the outstanding principal at the beginning of the moratorium and the compound interest thereon for the months for which moratorium was availed, termed as “Interest on Interest”- difference between the simple interest and the compound interest charged during moratorium period.
PNBHFL had also compounded the interest for the moratorium period for the customers who availed the moratorium. Accordingly the Interest on interest will be refunded.
Which all loans/facilities are eligible for refund under the RBI Circular?All “standard accounts” have to be given the benefit of relief. The determination date for this purpose is 29th Feb., 2020. That is, the days past due (DPD) status should be less than 90 DPD as on 29.02.2020 (“Eligible Accounts”).
Accounts not eligible for Relief under RBI Circular:
* Both retail and corporate finance loans will be eligible
If an exposure was standard on 29 Feb 2020 but became NPA in the next few months, will we process refund?
Yes, As loan was standard (not a NPA) on 29/02/2020 and had availed the moratorium, it will be eligible for refund of interest on interest irrespective of the fact that it became a NPA later on.
