Line of Credit Facility
	We offer corporate bodies a special facility of Line of Credit (LoC) facility which facilitates Home Ownership among its employees. The scheme facilitates a company to build its human resource by providing financial assistance to its employees for owning a house. The company can also save the funds otherwise required for building accommodation for their staff. Employees when they get an accommodation of their choice would contribute a great deal towards building an organization. The loans sanctioned are liberal and disbursements under this facility faster. Employees are assisted in every ways and need not take time off from work for complying with various formalities. A LOC facility granted to a company can be utilized to give loans to their employees for the purchase, construction or extension of residential units anywhere in India. A company can apply in the prescribed Corporate Application Form available at our offices along with the information/documents mentioned in the application form. After a LOC is sanctioned and the offer accepted, disbursement will be made after completion of legal and technical formalities.
	AMOUNT OF LOC: A company can apply for an LOC under both the schemes based on the anticipated demand for housing loans from its employees within the next one year. When this LOC is fully utilized, the Company can apply for another LOC as and when additional demand for housing loans arises.
	INDIVIDUAL LOANS UNDER THE LOC: The maximum individual loan per employee is 80% to 90% of the cost of the dwelling unit subject to a maximum of Rs. 30 lacs. The amount of loan available for borrowers is the amount recommended by the company and as determined by PNBHF.
	INTEREST RATES:  The company is requested to confirm our current applicable rate of interest. Interest is calculated on the basis of annual rests. PNBHF reserves the right to vary the rate of interest at any time in response to changes in money market conditions or if a levy, tax on interest or any other charge or burden is imposed or levied by any Government Authority.
	FEES AND CHARGES: (a) Processing and administrative fee is 1.5% of the LOC applied for and is payable at the time of submission of the application. (b) A commitment charge of 1% per annum on the undrawn amount of the LOC sanctioned is payable commencing six months from the date of acceptance of offer.  (c) On prepayment of the loan, in part or full, PNBHF might charge an early redemption charge of 2 % of the amount being prepaid.
	LOAN REPAYMENT: The company shall deduct the Equated Monthly Installments (EMIs) from the monthly salary of each of the employee borrowers and remit a consolidated cheque/draft of EMIs comprising principal and interest. Pending final disbursement of loan, interest on the disbursed portion of the loan called Pre-EMI interest is payable every month from the date of each disbursement upto the date of commencement of EMI. The details on security, disbursement, repayment terms and commencement of repayment are given under respective types of LOC.
	TYPES OF LOC: Our company offers LOC under the following two schemes:
	LOC TO LOC THRU Under this scheme funds are provided to the company for onward lending to its employees. The security for the loan is mortgage of dwelling units financed and/or any other security as acceptable to PNBHF, including bank guarantee. Since the company is the borrower and the employees of the company obtain loans from the company, the LOC is a direct liability of the company.   Under the scheme loans are sanctioned to individual employees nominated by a company with the company guaranteeing the loans. The security for the loan is a guarantee from the company and mortgage of dwelling units financed. Individual employees recommended by a company are the borrowers. Therefore, the company has a contingent liability to the extent of the guarantee provided.
	LINE OF CREDIT TO: Loan application can be made by a company which has an approved HBA scheme and is engaged in any business except in real estate promotion and development. (a) Period: The terms of the LOC would be subject to the weighted average repayment terms offered by the company under its housing loan scheme for employees covered under this facility subject to a maximum term of 15 years. (b) Security: The main security is mortgage of the dwelling units financed. Our company can also ask for a bank guarantee and/or any other security as may be mutually acceptable. The title deeds may be held either by PNBHF or by the borrower company on behalf of PNBHF. (c) Disbursement: Disbursement will be made to the company on the basis of a statement indicating periodic disbursements of housing loans made.  (d) Repayment: A company availing of an LOC would start paying Equated Monthly Installments in the month following the month in which final disbursement of the LOC is made to the company. Pending final disbursement, the company is required to pay interest on the disbursed portion of loan, called Pre-EMI interest and is payable every month from the date of each disbursement upto the date of commencement of EMI. In the event of an employee's superannuation, resignation, discharge from services or death, the amount of the housing loan outstanding in his account shall immediately be repaid by the company to PNBHF.
	LINES OF CREDIT THRU : As stated in the foregoing paragraphs, loans will be sanctioned to individual employees nominated by the company. (a) Period: The loans availed under this scheme will be repaid in over a maximum period of 20 years or up to the age of retirement of the employees, whichever is earlier. (b) Security: The LOC will be secured by mortgage of the dwelling units financed. The mortgage will be created by the deposit of the title deeds. The title deeds will be held by PNBHF. The repayment of the loan will also be guaranteed by the company. The Corporate Body will therefore have a contingent liability to the extent of the guarantee provided. The loan agreement shall be executed by the employee borrower and countersigned by the employer guaranteeing repayment. PNBHF might ask the employer company to provide any other security and execute any other documents as required in this behalf. (c) Disbursement: Disbursements to individuals under this facility will be made on the basis of the recommendation made by the company.  (d) Repayment: The employer shall deduct loan installments from the employee’ssalary and remit to PNBHF on a monthly basis. EMIs for individual employees would commence from the month following the month in which the loan is fully disbursed. Pending final disbursement, the individual is required to pay interest on the disbursed portion of the loan called Pre-EMI interest which is payable every month from the date of each disbursement up to date of commencement of EMI.
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