PNB Personal loan Eligibility

What is a Personal Loan?

A personal loan is an unsecured loan that can be used for meeting various personal expenses. Whether it is immediate monetary needs or a financial emergency, the personal loan can come in handy when an individual faces financial stress. Punjab National Bank is one of the oldest nationalized banks in India. The bank has a broad public reach across the country and with its variety of services, it has successfully built a good reputation in the Indian banking sector. The bank has several credit products, one of which is the personal loan.

Personal Loans from PNB

Punjab National Bank offers a variety of personal loans to salaried and self-employed applicants and also pensioners who are looking for financial assistance to meet various personal and professional expenses. The loans come with interest rates starting from 8.95% p.a. The maximum loan amount offered is Rs. 15 lakhs. The bank provides a loan tenure of maximum of 84 months.

Interest Rates on Punjab National Bank Personal Loan

Factors Affecting PNB Personal Loan Eligibility Criteria

Net Income: You must have a minimum monthly net income of Rs. 30,000 to avail a personal loan from PNB. The bank considers your income (Net take-home salary) to determine your eligibility. Your capability to make EMI payments is judged based on income earned.

FOIR: FOIR (Fixed Obligation to Income Ratio) is a crucial parameter used by PNB to determine an applicant’s personal loan eligibility. PNB considers all your fixed obligations (such as rent or current EMIs) into account while deciding an applicant’s eligibility. The minimum FOIR requirement for personal loan eligibility is 0.45. You can calculate and check your eligibility by using PNB personal loan calculator and apply online quickly and easily.

Co-applicant: Applying for a personal loan along with a co-applicant can increase your eligibility as it increases your total net income. This can also assure the bank about your repayment ability.

Credit Score: Your credit track record and usage pattern from past lenders get captured in your credit score. A credit score is an important factor that defines your eligibility for a personal loan. While checking eligibility for a personal loan, PNB goes through your complete credit report, including your existing loans and previous payment track record on borrowings. A higher credit score will increase your chances of the loan application getting approved. However, a low credit score will decrease your eligibility for a personal loan. PNB needs a minimum credit score of 650 for personal loan eligibility.

Job stability and type of profession - Job stability can help improve your eligibility for a personal loan from PNB. Your entire work experience and present work experience are looked at while evaluating your job stability and profession type.

Place of Residence and stability – Banks often look at the place of residence of any borrower. Certain areas are considered unfavourable by the bank. PNB has a set list of areas where it will lend a personal loan. The bank has a negative list of areas in which it does not lend personal loans depending on the credit behaviour of borrowers. PNB also assesses an applicant’s residential stability by verifying the number of years since an applicant has been staying in the current residence. If an individual is staying in his/her residence, it improves his/her chances of getting a personal loan from PNB. Minimum residential stability which is considered good by most banks is 10-12 months.

Industry Type – PNB has a list of professions that are considered negative. It also looks at the type of industry that an applicant works in. Basis the list, the bank may reject applications as it does not prefer certain kinds of professions and industries as suitable to lend a personal loan. Hence, your chances of getting a personal loan approval depend on your profession and the industry you work in.

Salary Mode – Most banks consider a salary account as adequate income proof. If your income matches the bank’s criteria, but you get your salary through cash or cheque, the bank may not grant you the loan since the bank will need concrete evidence of salary deposited in a salary account. This assures the bank that you will be able to make loan repayments on time. Thus, a salary transfer on monthly basis is preferred by PNB for personal loan applications.

Features of PNB Personal Loan

Here are some of the key points which will help you understand the features of PNB personal loans:

• The applicant can visit any of the PNB bank branches to apply for a personal loan. He/she can also reach out to the bank via phone banking to inquire about a personal loan. The bank will then send a representative to the enquirer’s place of residence for providing additional details and completing formalities.
• The bank offers personal loan to both self-employed and salaried individuals. The eligibility criteria are easy to follow and fair to all.
• The personal loan tenure can be a maximum of 5 years, and the bank offers the same at affordable interest rates.

Documents Required for PNB Personal Loan

While some documents required for a personal loan may vary across applicants, here are some of the key documents that are required to apply for a personal loan with Punjab National Bank. An applicant can furnish any one of the mentioned documents under each category.

• PAN Card
• Identity proof: Passport, Aadhaar, Voter Identity Card, Driving License, Aadhaar Card
• Address proof: Ration Card, Bank Account Statement, Passport, Driving License, Electricity Bill, Telephone Bill, Sale Deed/Property purchase agreement (for owned properties), Aadhaar Card
• Income proof: Bank Account Statement, Salary Slips

Reasons for Punjab National Bank Personal Loan Application Rejection

A low credit score is the biggest reason for your personal loan application rejection. Especially if your credit score is below 650, you should try and wait till it increases before applying for a personal loan.

PNB easily sanctions personal loan to customers who have a 700-900 credit score. Since PNB is a nationalised bank, the loan applicants must hold a good credit score without any indication of credit issue on the report. Apart from a low credit score, other factors influence your eligibility while taking a personal loan. Mentioned below are the factors that are checked by PNB before granting a personal loan:

• Low monthly income
• Unstable job
• Under or over the acceptable age limit
• Residing in a location with high default rates 
• Working with a delisted private organisation

Overview of Punjab National Bank

Punjab National Bank is an Indian banking and financial services organisation, which is state-owned and well-known for its personal, agricultural, corporate and even international banking services. Among its variety of service offerings, the bank also offers some of the best personal loan options. With its personal loan offerings, the bank aims to provide unmatched features and benefits to individual applicants. Whether one needs funds for home renovation, annual vacation or education expenses, PNB helps to fulfil every financial need of its customers.

FAQs – Personal Loan Eligibility – Punjab National Bank