Housing Finance Limited


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(A wholly owned subsidiary of Punjab National Bank)
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About Fair Practice Code
PNB Housing Finance Ltd. is a public limited company incorporated under Companies Act 1956, subsidiary of Punjab National Bank and governed by the directives of National Housing Bank.
Business: Our main business is offering loans for purchase / construction of houses, apartments etc and also for repairs, renovations or up gradation of the immovable residential properties.
Indent and Content
This Code has been formulated by the Company pursuant to the Guidelines issued by the National Housing Bank on Fair Practices Code for Housing Finance Companies vide its circular bearing No. HB (ND)/DRS/POL- No. 16/2006 dated September 05, 2006.
Objectives
• Follow good, fair and transparent business practices by setting reasonable standards;
• Relate to the customer in such manner so as to promote a fair and cordial relationship;
Application
• To be applicable to all persons using the Products and Services of the Company in any manner and/or by any mode.
• The Code is applicable under normal operating environment except in the event of any force majeure.
• The Code is based on ethical principles of integrity and transparency and all actions and dealings shall follow the spirit of the Code.
Commitment
• The Company shall at all times do its best to act fairly, reasonably and meet the standard practices prevalent in the housing industry.
• The Company shall abide by all the relevant laws, regulations and meet with the ethical principles of integrity and transparency during its interaction with customers.
• While interacting with customers, the Company may take all steps as may be required to provide clear information either in English or Hindi or the appropriate local language regarding:
   >  its various products and services;
   >  the terms and conditions, the interest rates/service charges;
   >  benefits available to customers and the implications, if any;
   >  contact persons for addressing the queries, if any;
• The Company will provide a copy of this Code, at request, to the customer. The Code will also be made available on its Website and at every branch/ office.
• The Company shall treat the information relating to customers as strictly confidential and shall not share any information, unless required under law or waived or permitted by the customer.
• The Company shall take necessary steps to inform its customers of their right to information regarding their account and the facilities available to them.
• The Corporation shall be clear and not misleading in any of its advertising and promotional materials.
• The Company shall inform its customers of all financial information such as rates of interest, charges, method of calculation etc through brochures, posters or during the course of meeting with the customers etc prior to entering into any transaction.
The Company shall endeavor to keep its customers informed of any change in interest rates / charges etc through letters or any other form from time to time. Know Your Customer Guidelines
• The Company shall assist its customers in complying with the Know Your Customer norms (KYC) and the Anti Money Laundering Policy (AML). Loans and Deposits
• The Company shall provide the details of the terms of the deposit, the applicable rate of interest, the terms of renewal, premature withdrawals, loans against deposits, nomination facilities, schemes available for senior citizens and staff.
• The Company in the normal course of its business shall guide its customers about the process and procedure to be followed for availing a loan.
• Each application shall be considered independently on merit, upon scrutiny of all the information, documents required for verifying the title of the property, identity of the person, entity and the security to be offered, including guarantees.
• The letter of guarantees to be executed by the guarantors would cover their obligations, liabilities and circumstances in which they can be called upon to pay the dues of the customer/borrower.
Collection of Dues
• The Company shall provide the customers with all the information regarding their dues and provide reasonable time for payment of the same.
• The Company shall while protecting its interest adopt reasonable and lawful measures to recover its dues from defaulting customers, including use of persuasive methods for the purpose of collection of its dues.
Complaints and Grievances
• The Company shall endeavour to address/respond to all complaints and grievances within a reasonable time and keep the customers informed about the status of their complaints.
• The Company shall make available facilities at each of its branches and offices for the customers to lodge and/or submit their complaints or grievances, if any.
Table of rates of interest, fees and other charges:
Floating Rate Loans The rate of interest for the loans under Floating Scheme vary based on the movements of rates in the market and our lending rate/ PNBHFR (Benchmark rate of PNBHFL) and the variations if any during year will be communicated to the borrowers from time to time. The borrowers are informed in case of change in PNBHFR. The latest PNBHFR is also displayed on the site.
Fixed Rate Loans The rate of interest for the loans under Fixed Rate Scheme is initially fixed for three years. Thereafter, the rates would be as applicable at the end of three years period. A borrower has the option to convert it into floating rate as applicable at the end of three years period without any charges.
    For latest interest rates on housing and other loan,
    Please refer individual loan schemes on our web site.
Processing and Administrative Fee payable with loan application
Loan Slab Up front Fee on Loan amount
Upto Rs.5 lakh 1.25 %
Above Rs.5 lakh upto Rs.10 lakh 1.00%
Above Rs.10 lakh upto Rs.15 lakh 0.75%
Above Rs.15 lakh 0.50%
Chargeable one time and is non-refundable
Commitment fee: 1% p.a. of loan amount in case the loan is not availed within 12 months from the date of sanction or 3 months from the scheduled date of disbursement whichever is earlier.
• Late payment charges/ overdue interest/ penal interest: 2% p.m. on the delayed EMIs/ PEMIs for the delayed period
• For loans sanctioned for construction on plot which is to within 18 months or as stipulated by allotting agency/developer Rate of Interest will be 2% higher than that of housing loan.
Stamp duty on creation of mortgage – As per the relevant State Stamp Act As informed by the Branch In Charge.
Charges for dishonour of post dated cheques given towards EMIs / overdues/ pre-closure/ incidental charges Rs.250/- plus service tax for each such dishonour cheque.
Pre-payment charges for housing loans No charges for part pre-payment if it is upto 20% of the loan outstanding. Thereafter, 2% on amount pre-paid.
Pre-closure charges for Loans Minimum 2% on the outstanding balance/or as prescribed by company.
Charges for sending Statement of Account. Rs. 100 annual charges.
 Conversion fee/charges:
• For conversion of loan from Fixed to Floating 2.00% of the outstanding amount as on the date of conversion
• For conversion of loan from Floating to Fixed 2.00% of the outstanding amount as on the date of conversion.
• Conversion of loans from Fixed Scheme to Floating Scheme or Floating Scheme to Fixed Scheme are permitted at the sole discretion of PNBHFL on fulfillment of certain conditions.
• The charges stated above are subject to revision by the Company from time to time.
* The customer has to bear the service tax, surcharge, educational cess and other statutory expenses as per the relevant Acts applicable from time to time.
All personal information of customers shall be treated as private and confidential [even when the customers are no longer customers], other than in the following exceptional cases:
a. If the information is to be given by law
b. If there is a duty towards the public to reveal the information
c. If our interests require us to give the information (for example, to prevent fraud)
d. If the customer permits or consents for revealing the information.
e. If the information is being given to Credit reference agencies
f. The information will be revealed to the credit reference agencies without the consent of the borrower if the customer has defaulted in repayment of installments. The copy of the information so revealed may be obtained on demand and payment of necessary fee.
COMPLAINTS AND GRIEVANCES
If the customer has any grievances, he can make a complaint in writing addressed to the concerned Branch Manager, quoting the account number, gist of the complaint and in case the grievance is not resolved within 15 days, a copy of the complaint with acknowledgement to be forwarded to the Grievance Escalation address given under;
Grievance Escalation: For unresolved grievances please write to the Ex. Vice President (Operations), at the above address or E-mail: evpnrv@pnbhfl.com
KNOW YOUR CUSTOMER (KYC) GUIDELINES
The customers shall submit or provide necessary documents or proofs viz., PAN details, proof of identity, address, educational qualification, employment etc. as and when called for by CFHL as per the KYC norms, either at the time of applying for the loan or at any later stage before closure of the account;
RETURN OF TITLE DEEDS DEPOSITED
The title deeds deposited by the borrower/s or guarantor/s for creation mortgage will be returned to the said persons or their legal heirs only on closure of the entire loan liabilities of the borrowers /Guarantors due under the loan/s availed directly or indirectly against the security of such properties. Borrower shall furnish the no due certificate to the concerned department for getting the title deeds back.
Last updated on:14-Dec-2007