WHAT IS A MORTGAGE?

A mortgage represents a loan or lien on a property/house that has to be paid over a

specified period of time. Think of it as your personal guarantee that you'll repay the
money you've borrowed to buy your home. Mortgages come in many different shapes and
sizes, each with its own advantages and disadvantages. Make sure you select the
mortgage that is right for you, your future plans, and your financial picture.

Mortgage types and interest rates have more variety than doughnuts. This is the challenging
part of shopping for a mortgage.

We've done this several times. We've probably tried most of the common types of
mortgages, from short-term 6-month mortgages (which normally offer the lowest interest
rate, but which you have to negotiate the most frequently) to variable interest rate
mortgages over a 5-year term.

Here's what we can say with good authority - your current mortgage rate may not be the
best deal you could get. Unless you've gone to your lender with the same kind of steely
determination with which you would face a used car salesman, you are likely paying more
than you have to.

With this in mind, we'll also share what we've learned from the school of hard knocks.

So, pick the type of mortgage that you are interested in from the list below.

MORTGAGE TYPES
Low interest rate mortgage
Adjustable rate mortgage
Interest only mortgage
Assumable mortgage
Fixed rate mortgage
Reverse mortgage

A mortgage loan is different than any other loan you will get in your lifetime.

Most mortgage loans are negotiated for a set time period of less than 10 years. They are
negotiated for a single interest rate which will remain in place for the entire term of the
mortgage loan. (The only exception to this would be a line of credit, in most cases. The
interest rate on a line of credit may be changed over time.) Generally, you can pay off a loan
in full at any time, although you may pay a penalty depending on the mortgage lender.

Most of us are familiar with this kind of loan through the purchase of our vehicles.

With mortgages, the length of the mortgage, the term of the mortgage and the mortgage
interest rate are negotiated separately. In this case:
the 'amortization' of the mortgage is the length of time it will take to pay off the
mortgage
 the term refers to the time period covered by your current mortgage contract. This is
normally the length of time that you are 'locked in' to a particular interest rate and
payment amount.
the interest rate can either be fixed or variable.

MORTGAGE LOANS
Amortization
Term
Interest rates
Saving Money

Frequently Asked Questions With Answers

1. For which purpose can I avail loan?

A) At PNBHFL you can avail a variety of loans from us viz: Loan for Purchase of
property/flat/house. Loan for Repair renovation and addition alterations of
house/flat. Loan Against existing property. Loan for Purchase of commercial
property. Loan Against future rent receivables. Loan Construction of school,
college, hostel and nursing home. Loan for Financing to builder for construction
of housing/commercial projects.

2. Are loans permitted to NRIs?

A) PNBHFL provides user friendly loans not only to resident Indians but also to
NRIs on very competitive terms.

3. Whether loan is permitted for purchase of commercial property?

A) Yes, despite being a housing finance company, we do take care of our
customers business needs and expansions. We do provide loans for purchase
of commercial properties viz. Hospitals, Nursing Homes, Schools, Shopping
Complexes, etc.

4. How can I calculate my eligible loan amount?

A) A user friendly calculator is available on our website to calculate loan
eligibility taking into consideration the age, repaying capacity and period of
loan required.

5. How can I enhance my loan eligibility?

A) If a person is not eligible to obtain a loan of desired amount, he can rope-in
additional co-borrower having regular source of income. In order to make his
dream project become a reality, we consider the regular income of co-
borrowers also.

6. If I want to co-own a property with my family members, then will I be

eligible for loan?
A) Yes, you will be eligible to avail the loan for the property provided all the co-
owners are made co-applicants in the loan.

7. What is the maximum loan tenure?

A) PNB Housing Finance provides a very easy and comfortable repayment
schedule to its borrowers helping them in fulfilling all their financial
commitments. The maximum loan tenure is 20 years

8. What is the maximum age for repayment of loan?

A) The maximum age for repayment of loan of salaried class is 60 years and 65
years for self employed/professionals.

9. What is the cheque bouncing penalty?

A) The cheque bouncing penalty is Rs 250/-.

10. How can I repay my loan?

A) The loan can be repaid by way of equated monthly installments (EMIs)
which can be paid either through ECS mandate, through PDCs (post dated
cheques) or through direct deductions from salary.

11. Can I prepay my loan? What are the prepayment charges?

A) Yes the loan can be prepaid. The prepayment is allowed without any penalty
upto 20% of the balance outstanding in a year and further any prepayment is
subject to penalty of 2% of the loan outstanding balance paid

12. Can I convert my fixed rate of interest to floating or vice versa?

A) Yes, facility of migrating from fixed to floating and from floating to fixed rate
is available. There is a very nominal fee for using this service.

13. Is takeover of loans from other institutions being done?

A) For the benefit of public in general, we takeover the loans from other
institutions provided the track record of the account is to our satisfaction.

14. Whether Loan against existing property is permitted?

A) Yes, we provide loans against existing property, which can be used for
purposes other than housing also.

15. What documents are required to be submitted along with loan application form?
A) List of documents given below for salaried and self employed, required to be submitted
along with loan application form:

IF SALARIED SELF EMPLOYED

1. Passport Size Photograph 1. Passport Size Photograph
 2. Age & Residence Proof ( copy of 2. Age & Residence Proof ( copy of
Passport, Ration Card, Driving License Passport, Ration Card, Driving
/ Pan Card) License / Pan Card)
3. Latest Slip showing all earnings, 3. Income Tax return for the last 3 years
deductions & Net Salary with computation of income.
4. Form 16, ITR for the last financial 4. Balance Sheet , Profit & Loss A/c for
year the last 3 years
5. Bank Statements for the last 6
5. Bank Statement for the last 6 months
months ( reflecting the salary income)
6. Signature verification Proof 6. Signature Verification Proof
7. Photocopy of Property documents 7. Photocopy of Property documents
8. Copy of approved plan 8. Copy of approved plan
9. A detailed estimate with cost and 9. A detailed estimate with cost and
measurement details measurement details
10. Upfront fee Cheque 10. Upfront fee Cheque

Our EMI calculator is easy to use and is quick to perform. Use our EMI calculator as a guide
before availing for any kind of loan. EMI calculator let's you judge how affordable a loan can be
for you. Always use the calculator to get a quick quote on your EMIs. . You can calculate home
loan and personal loan EMI with this calculator. If the quote satisfies you, then apply accordingly.
It is this simple.

Enter the loan amount you wish to avail in the EMI calculator.
Then enter the loan tenure (months).
And the rate of interest (reducing).
Press "calculate".
Our EMI calculator will tell you just how much your EMI amount comes to.

Along with your EMI you also get results like :

total amount with interest.
 flat interest rate PA / PM.
total interest amount.
yearly interest amount.

And if you think the EMI is a bit more than you can afford, you could always re-calculate.
This time enter either less loan amount or longer loan tenure in the calculator.
You can also continue to re-calculate until our calculator gives you an EMI that you are satisfied
with.

Also remember to compare quotes from different banks.

You can do this by entering the loan amount and the rate of interest with the loan tenure of, say
bank "A". See how much it amounts to.
Then do the same again of bank "B". Whichever suits your needs and fits your wants, apply.

In todays scenario banks are coming your way with bouquet of offer for your loan requirements.
To have a finest deal from these banks one should ponder to following points before cracking a
deal.
Dont be corrupted by paying high EMIs at low rate of interest
Better compare EMIs with same tenure And then with rate of interest

(1) Check your reimbursement power (EMI) : You repay the loan in equated monthly
installments, or EMI, consist of principal as well as interest as its constituent. Since you pay an
equal amount month after Month, these payments are called equal monthly installments. The EMI
depends on the amount of the loan, the interest rate and the term of the loan. It Is an unequal
combination of principal repayment and interest cost every month. In the Beginning bank
recovers their interest payments and gradually more of the principal repayment by the end of the
loan tenure. EMI amount should range maximum to the 40% of your monthly income. One
should consider offers from various banks as it may differ from one bank to another bank. Your
involvement into the process might end up in a win- win situation for you.

(2) Market around (Rate of interest): Today there are many lenders in the market. Every bank is
offering loans Whether its a nationalized bank, private bank or foreign bank each of them is there
in the show. Every bank offers different personal loan rate and home loan rate according to the
profile of the customer. So, before finalizing a deal one should consider deals from various banks
and than come to a conclusion. And aware of the fact that some people might mislead you by
charging high rate of interest at reducing rate and might inform the same at flat rate of interest.
So, its always advisable to check full detail with the banks and do better comparison in respect of
EMIs , Tenure and rate of interest and keeping tenure as constant with all the banks will ease your
comparison and will result in better analysis, finally leading to a prudent decision.

(3) Tenure: Its one of the most important factors that one should keep in mind while taking loan.
It refers to the no. of years for which the loan has been taken. Longer the tenure higher will be the
interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the
parameters which helps in comparing the EMIs from different banks keeping it constant for
relationship and easing the judgment.

(4) Loan Disbursal Time: Loan disbursal time is the period in which loan is processed and the
customer receives the demand draft from the bank. Disbursal time differs from one bank to
another bank. Its an important factor because there is always a reason behind taking a loan if the
opportunity of that objective is lost than its of no use better ask your bank the Turn Around Time
and take the loan considering your urgency or better plan it in advance.
(5) Processing Fee, Administrative Charges & Pre-Payment Charges: When you Borrow, Your
loan carries other charges as well apart from interest that may include Processing Fee which bank
charges to process your file and pays to the processing hubs, charges may vary from 1-2% of the
loan amount sanctioned by bank. Besides this there is Pre-Payment Charges also which loan
carries for the Pre-Closure of the Loan its always advisable to take loan which has no penalty for
the pre-closure of loan because it might happen in the long-run you have enough money to pay
your debt and thereby save interest on the same else you can have the opportunity to get your
loan transferred at low rate of interest.

(6) Insurance Facility: Some bank offers insurance facility by charging small amount of premium
which is added to the EMI paid for the loan amount and the person is insured for the amount he
has taken loan and incase something unexpected happens. Assured amount will be given to the
bank without burdening the members of the family.