Housing Finance

Q. Who can avail Housing Loan from your Bank?
A. Any Individual

Q. Please let me know the purpose for which I can avail Housing Loan?
A.

	For construction of house.
	For purchase of house/ flat.
	For purchase of house/ flat from the original allottee, i.e. on First Power of Attorney basis.
	For carrying out repairs/ renovation/ additions/ alterations in the existing house.

Q. How much loan amount can I avail?
A. In case of house/flat, 75% of the cost of project, depending upon project cost and your repaying capacity. In case of Plot, loan to the extent of 60% of the cost of plot will be permissible.

Q. What will be the rate of interest?

Rate of Interest

I. Housing Finance to Individuals including NRIs For repayment period	Fixed Option for loans		Floating Option for loans
	Upto 20 lac	Above 20 lac	Upto 20 lac	Above 20 lac
i) Upto 5 years	10.25	11.25	9.00	10.00
ii) Above 5 & upto 10 years	11.00	12.00	9.25	10.25
iii) Above 10 & upto 20 years	11.25	12.25	9.50	10.50
iv) Above 20 yrs & upto 25 yrs.	11.75	12.75	10.00	11.00

Note : 1. Fixed Rate of interest are subject to re-set clause of five years.
2. For persons availing loan for 2nd or subsequent house, 1% extra rate of interest will be levied.
3. Interest rates, updated as on 18.10.2007

Can the option on the rate of interest exercised at the time of sanction be switched over during the currency of the loan?
A. The option for Fixed or Floating Rate of Interest exercised by the borrower at the time of sanction will not be allowed to be switched over for a minimum period of 3 years. Thereafter, any change would be at the discretion of the Sanctioning Authority.

Q. How much period is available for repayment?
A. Loan together with interest is to be repaid in Equated Monthly Installments within a maximum period of 25 years, or before the borrower attains the age of 65 years.

Q. Whether interest applicable is flat rate or at reducing balance?
A. Interest is charged on reducing balance.

Q. What formalities are to be completed for availing the facility?
A. Formalities vary from case to case. For details, kindly contact our nearest branch.

Q. What security is required by the bank for making the loan?
A.

	Mortgage of property for which finance is being given.
	In case of purchase of house flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/society, borrower and the Bank.
	In case of purchase of house/ flat on first power of attorney, additional security by way of mortgage of some other property or pledge of Bank's Fixed Deposit Receipt/ LIC policy/ Govt. securities has to be provided.
	Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives.

Updated as on 18.10.2007

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Car Loan

Q Who can avail Car Loan?
A Individuals and Business Concerns.

Q Whether finance is also available for used cars?
A Finance is also available for purchase of used cars not older than 3 years.

Q How much loan can be availed under the scheme?
A For individuals, loan amount shall be 25 times the Net Monthly Salary/Income, subject to maximum of Rs.15.00 lac or 80% of the cost of the vehicle whichever is less. In case of business concerns, loan amount can be need based and is not subject to any ceiling.

Q Whether the income of the spouse is also taken into account for determining the amount of loan?
A Yes, income of the spouse can also be taken into account for determining the amount of loan. In such cases, the spouse shall stand a guarantor.

Q What will be the repayment period?
A Amount of loan together with interest shall be repayable maximum in 84 equal monthly installments. However, for old car, loan together with interest is to be repaid maximum in 60 equal monthly installments.

Q What is the rate of interest charged?
A.

Amount	Under Floating Rate of Interest Option (% p.a.)
For Individuals with minimum RBL score of 60	11.50
For others (incl. business concerns)	12.00

Q Whether interest applicable is flat rate or at reducing balance?
A Interest is charged on reducing balance.

Q What formalities are to be completed for availing the facility?
A The following documents are required to be submitted:

	Proforma Invoice of Car to be purchased.
	Proof of residence
	Proof of Income
	Details of guarantor.

Updated as on 18.10.2007

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Professional Loan

Q. Who is eligible to get loan under the scheme?
A. The following categories of professionals are eligible to get loan under the scheme:

	Persons already practicing or new entrants in various professionals, having licenses issued under Central or State Legislations.
	Associations of persons engaged in a single profession provided that each member of such an association is qualified and duly licensed to practice in the profession; and
	The qualified professionals will be required to produce a certified copy of the license for the record at the bank.

Q. What is the purpose for which advance is sanctioned?
A. Loans under this scheme may be granted for the purpose of financing purchase of equipment used by the borrowers, business premises, construction, making alterations or renovation of business premises/ nursing homes or for working capital requirements, in their professions.

Q. How many loans can be availed under this scheme?
A. Amount of loan: Need based on merits within the overall permissible limits as under: Metro/ Urban S.Urban/ Rural Area 1.Medical practitioners 5.00 lac 10.0 lac 2. Other professionals 5.00 lac 5.00 lac 3. Margin : Nil up to Rs.25000/-. 25% Above Rs.25000/-

Q. What is the rate of Interest charged?
A.

* Subject to change.

Q. What will be the repayment period for the term loan?
A. Repayment will be in equal monthly installments within the following periods: · Loans up to Rs.50000/- 48 months · Loans beyond Rs.50000/- 60 months

Q. What is the procedure for disbursement of the loan?
A. Payment will be made direct to the suppliers/ dealers. In case of construction of the premises, the loan may be disbursed in phases after verifying the end use in terms of the plan as also at the spot.

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Education Loan

Q. What are the types of education for which education loans are given?
A. Education loans are given for pursuing all types of education viz. general, professional, technical and vocational courses.

Q. Which costs are financed under the scheme?
A. The scheme enables the needy students to meet the following costs for studies in India as well as abroad: admission fees, books & stationery, instruments required for the course, monthly fees, examination fees, insurance premium for policy on life of the borrowing student, caution deposit/ building fund/ refundable deposit supported by bills/ receipts, expenses like study tours/ project work/ thesis etc. required to complete the course, boarding and lodging expenses, and travel expenses/ passage money including air fare for joining the course abroad.

Q. Who is eligible to get loan under the scheme?
A.

Student eligibility

	Should be an Indian National.
	Secured admission to Professional / Technical courses through Entrance Test / Selection process.
	Secured admission to foreign University / Institutions.
	Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

Q. How much loan amount can I avail?
A. Need based finance, subject to repaying capacity of the parents / students with margin subject to the following ceilings :-

	For studies in India: Rs. 7.50 lacs
	For studies abroad: Rs.15.00 lacs

Q. What is the security required by the bank?
A. The following additional security in addition to the personal liability of the borrower is required:

Q. What is the rate of interest charged in the loan?
A. Interest rates are linked with BPLR, as under :

Amount	Under PNB Vidya Lakshya Purti Scheme	Under PNB Sarvottam Shiksha Scheme
Upto Rs.4 Lacs	12.25%	11.25%
Above Rs.4 Lacs & Upto Rs.15 Lacs	13.50%	12.75%

The Interest rates are subject to change from time to time.

Q. What is the method of application of interest in the loan?
A. The interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan. Thereafter, compound interest is charged on reducing balance.

Q. When does the repayment of loan commence?
A. Repayment will commence after Course period + 1 year OR 6 months after getting job, whichever is earlier.

Q. What is the repayment schedule?
A. Principal and interest is repayable in 60 to 84 monthly installments.

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Krishi Cards

Q. Can I raise loan under this scheme for activities other than Agriculture?
A. Yes, for other rural household requirements such as education, consumable items, medical expenses, etc. up to 25% of the limit or Rs.25,000/- whichever is lower.

Q. Do I need minimum qualification to be eligible under the scheme?
A. No.

Q. If I have 5 acre of unirrigated land, am I eligible under the scheme?
A. Yes.

Q. Can I take the payment from the other branches also?
A. Yes, but within the same district whereas the illiterate cardholders will avail the facility from the issuing branch only.

Q. Do I have to pay any additional fee/charge for withdrawing cash from other than the issuing branch?
A. Yes, if you withdraw cash from the branch other than the issuing branch a commission @2% is charged and the same is deducted from the cash withdrawn.

Q. If I want to renew my Krishi Card what formalities are required?
A. You should approach the issuing branch one month before the expiry of the card with a written request for the same.

Q. Is there any concept of the margin under the scheme?
A. For limits up to Rs. 2,00,000/-, the margin requirements are nil. For limits above Rs.200,000/- up to Rs. 3,00,000/-, margin requirement is 10%.

Q. In case of loss of card/passbook what are the formalities?
A. Inform the card issuing branch by quickest means and a new card is re-issued on payment of nominal charges of Rs.200/-.

Q. How do you work out the eligible limit?
A. The limit is worked out on the basis of your total income from farm as well as non-farm activities, extent of land holding, acreage and average yield of crops grown, price realisations etc.

Q. How do I repay the amount raised against the card?
A. Aggregate credits into the account during the 12/18 months period as the case may be, should at least be equal to the maximum outstanding in the account. The cardholder will also have to maintain his/her cash credit account in credit balance for at least one week once a year. However, the consumption loan portion shall be adjusted within a period of three years. All the repayments/deposits by the cardholder shall be made at the card-issuing branch only.

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Mortgage of Property

Q. For which activities loan can be raised under this scheme?
A. Loans can be provided under this scheme to both individuals as well as business enterprises for the purpose of meeting business and personal needs. Personal needs would cover children's higher education, travel, daughter's marriage, medical emergencies, etc. Loans, however, are not available for speculative purpose.

Q.Are loans available in rural/semi-urban areas?
A. Loans are available anywhere in India from PNB branches.

Q. What is the repayment schedule for this scheme?
A. Loan together with interest is repayable in maximum 84 equal monthly installments.

Q. What is the security to be provided for this loan?
A. Loans can be provided under this scheme against non-encumbered residential house/flat or commercial or industrial property (in the shape of building/industrial shed) self occupied or vacant.

Q. What is the rate of interest to be charged on loans under this scheme?
A. BPLR + 1.75% (i.e. presently 14.75%)

Term premia of 0.50% be added in interest rates in respect of Term Loans repayable in three years & above.

Updated as on 18.10.2007

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Future Lease Rentals

Q. For which activities loan can be raised under this scheme?
A. Loans can be provided under this scheme to both individuals as well as business enterprises for the purpose of meeting business and personal needs. Loans, however, are not available for speculative purpose.

Q. What is the repayment schedule for this scheme?
Ans. Maximum 120 monthly instalments or remaining period of lease whichever is earlier.

Q. What is the security to be provided for this loan?
A. Security under this scheme is to be provided as under:

	Assignment of lease rentals.
	Equitable mortgage of any immovable property to the extent of 100% of the loan.

Q. What is the rate of interest to be charged on loans under this scheme?
A. At present Interest rate is 12.75% as Term Loan. This is subject to change from time to time. (updated as on 30.09.2007) Term premia of 0.50% be added on loans repayable in three years & above.

Q. Are there any processing charges for loans under this scheme?
A. Loan carries a nominal processing charges of Rs.200 for loans up to Rs. 2 lac, and Rs. 150 per lac or part thereof in case of loans over Rs. 2 lac. There are no pre-payment charges. FAQs-Finance to Housewives and other women

Q. Who can avail Loan from your Bank under the scheme for financing housewives?
A. Any woman/housewife, 18 years of age and above, living at a place for more than 6 months and who has not been a member of any industrial co-operative society, as also not indebted to any cooperative or state agency, can avail loan under this scheme.

Q. What kind of activities can be got financed under this scheme?
A. Housewives and other ladies can avail this loan for projects relating to artisans, village and cottage industries, SSI, small business and retail trade. Industrial projects requiring higher assistance may also be considered under the scheme of financing small-scale industries.

Q. How the loan is disbursed?
A. The amount of loan for purchase of equipment shall be paid directly to the supplier. Advances against raw material will be made either in the form of pay order in favour of the supplier or on the presentation of bill to the bank. In respect of requirements of petty items like tools, equipment and raw materials, cost not exceeding Rs.800/- per item, the amount may be released either to the borrower or to supplier in cash up to Rs.3000/- on merits, without insisting for performa bills, cash-memo(s) etc.

Q. What will be the loan amount?
A. The amount to be disbursed will be need based, subject to ceiling of Rs.25,000/- per borrower for purchase of machinery/equipment etc. and meeting working capital requirement of one operating cycle.

Q. What will be the repayment period?
A. The term loan/composite term loan is required to be adjusted in 36 monthly installments starting 3 to 6 months from the date of availment depending upon generation of surplus.

Q. What is the rate of Interest charged?
A. At present Interest rate is 12.00%. This is subject to change from time to time.

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Mahila Udham Nidhi Scheme

Q. Who can avail loan under Mahila Udyam Nidhi Scheme from your Bank?
A. Entrepreneurs engaged in new projects in tiny and small scale sectors for manufacture, preservation or processing of goods ((tiny enterprises would include all industrial units and services industries (except Road Transport Operators) satisfying the investment ceiling prescribed for tiny enterprises viz. Rs. 5 lakh). Apart from this, all tiny and small scale industry entrepreneurs (including those who have availed this facility earlier) are also eligible for undertaking expansion, modernisation, technology upgradation and diversification. Sick units in the tiny and small scale sectors including service enterprises as mentioned above, which are considered potentially viable, besides all industrial activities and service activities (except Road Transport Operators) in the SSI sector, are also eligible for loan under this scheme.

Q. What are the criteria for project outlay for financing under this scheme?
A. The project cost criterion (including margin money for working capital) is as under: q for new projects: not exceeding Rs.10.00 lakh per project. q for existing units and service enterprises: the outlay on expansion/modernisation/technology upgradation, or diversification or rehabilitation should not be exceeding Rs.10.00 lakh per project.

Q. How is the soft loan portion disbursed?
A. The soft loan is to be disbursed in accordance with terms and conditions of sanction and only after the promoter(s) has (have) brought in her (their) own contribution in full. In this connection, the bank acts as agent