Housing Finance Limited


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( In Partnership with Destimoney Enterprises Pvt. Ltd. )
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HOME LOAN LIFE INSURANCE PLAN

With the prices of property soaring high and the rising need for owning a house at a young age, the home loan facility extended by various financial institutions has enabled many to acquire their house which otherwise would have taken them years to accomplish.

However, unforeseen circumstances strike without warning, like event of death of the applicant, which can result in default in payment of loan. Further, if there is no other earning member in the family, the security may be taken in possession by the loaning institution due to non-payment of installments, making the life of survivors miserable.

Hence, a policy that can provide cover against home loan on event of death of borrower becomes a necessity.

Getting a loan cover policy in individual capacity is often a costly affair and can burn holes in the pocket of the borrower, who is already incurring the expenses towards monthly installments of the housing loan.

In such circumstances, a group insurance loan cover against death of borrower offered by the loaning institution is not only welcome but also a major relief from the tension of unforeseen future circumstances. Further, the cost of taking such cover is also reduced considerably. In practice, very few housing finance companies are offering this service to its customers.

As a measure to relieve its borrowers from the tension of unforeseen, PNB Housing Finance Ltd. has come up with ‘HOME LOAN LIFE INSURANCE PLAN’ in association with TATA AIG Life Insurance Company Ltd. at the lowest premium as compared to other players in the market. It is an optional insurance cover for the borrowers on decreasing life cover to the extent of loan outstanding on single premium method.

The premium can be paid either as one-time payment or can be clubbed with home loan and financed.

Premium Chart for Loan amount of Rs.5 lacs and for 15 years tenure
Age   25 years 30 years 35 years 40 years 45 years
Single Premium for Home Loan Life Insurance Plan – one-time payment* 5625  6700 8870 12970 19845
Normal EMI for Housing Loan 4855 4855 4855 4855 4855
Additional EMI for Insurance coverage 55   66 87 126 193
Total EMI for Housing loan & Insurance coverage 4910 4921 4942 4981 5048
* The premium charged for a policy of Rs. 5 lacs and for 15 years term by another major player of industry for life insurance is as under:
Age   25 years 30 years 35 years 40 years 45 years
Single Premium 10410 12635 17500 26415 40565
Thus, the ‘HOME LOAN LIFE INSURANCE PLAN’ is a value added product of PNB Housing Finance Ltd. with the additional advantage of most affordable price.
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 / overdue/ 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.
For Life Insurance Premium Click Here
For contact details Click Here

Last updated on:14-Dec-2007