Punjab National Bank Loan Against Property
A loan against property, sometimes called a loan against mortgage of immovable property, lets an owner raise funds by pledging a residential, commercial or industrial property they already hold, without selling it. Because it is backed by real estate, it is a secured loan that typically carries lower interest than unsecured borrowing and can run over a long repayment period. Borrowers use it for a wide range of personal and business needs such as home repairs and renovation, a wedding, children's education, medical treatment, a family trip, purchase of an asset, or working capital and expansion for a business.
Punjab National Bank, a public sector bank established in 1894 and headquartered in New Delhi, extends this facility to individual owners and joint owners who own an unencumbered property and can demonstrate repayment income. The property offered as security must be a self-occupied and non-encumbered residential, commercial or industrial property held under an equitable or registered mortgage, and it must have adequate residual life.
PNB allows the loan to be taken either as a term loan repaid in instalments or as an overdraft that can be drawn and repaid flexibly. The bank restricts the end use to lawful, non-speculative purposes: proceeds cannot be used for real estate investment as a business or for speculation in shares, stocks, commodities, bullion or securities. The sanctioned amount and eligibility depend on the property's assessed value and the borrower's income, and approval is not assured.
At 9%, Punjab National Bank has one of the lowest starting rates of the 18 lenders we track for loans against property.
Documents required
- Loan application form duly completed with photograph
- Age proof
- Address proof
- Income proof - Salaried: latest ITR / Form 16 of last 3 years with latest salary slip, and statement of account for the last 6 months in which salary is credited; Non-salaried: latest ITR of last 3 years, and statement of account for the last 6 months in which business income is credited
- Proof of income of spouse / parents / earning children, where considered for the loan amount / repaying capacity
- Papers of the immovable property proposed to be mortgaged
- Statement of assets and liabilities with supporting documents
As published by Punjab National Bank. Your branch may ask for more.
Eligibility
Loan terms
- Available either as a term loan repaid in instalments or as an overdraft that can be drawn and repaid flexibly
- Accepts self-occupied residential, commercial or industrial property as security under an equitable or registered mortgage
- Open to individual owners and joint owners of an unencumbered property with demonstrable repayment income
- Permits a broad range of lawful personal and business end uses while excluding speculative and real-estate-business purposes
- Requires the mortgaged property to have adequate residual life to support the loan tenure
Fees & charges
FAQ
LAP is secured against property, so the rate is lower and the tenure longer than an unsecured personal loan — better when the need is large and long-term. The trade-off is a legal/valuation process and your property as collateral.
Every row is date-stamped with the day we last checked it, and links to the lender’s published material so you can confirm it yourself. A row we confirmed against the source reads “Verified”; one we could only sight reads “as of”, and is not presented as confirmed. Anything we have not re-checked in 60 days is marked “rate under review” rather than left to look current. We do not claim a fixed re-checking cycle — the date on each row is the honest answer.
No. Viewing rates is not a credit enquiry and has no score impact. A hard enquiry happens only when you formally apply to a lender.