PNB Revises Personal Loan Schemes: Loan Limit Increased to Rs 30 Lakh for Public and Rs 40 Lakh for Doctors

Punjab National Bank (PNB) has revised the eligibility criteria and other conditions for its PNB Sahyog – Personal Loan to Public and PNB Doctor’s Delight – Personal Loan Scheme for Doctors. The revised criteria include higher loan limits, longer repayment periods, relaxed guarantee requirements for certain borrowers and changes in salary deduction limits.

PNB Sahyog – Personal Loan to Public

1. Maximum Loan Amount

Earlier, the maximum personal loan amount was Rs. 20 lakh. Now, it has been increased to Rs. 30 lakh, depending on the borrower’s repayment capacity. The loan eligibility limit has also increased from 24 times to 30 times the gross monthly salary.

2. Guarantee Requirement

Earlier, borrowers were generally required to provide a suitable third-party guarantee acceptable to the bank. Now, permanent Central Government, State Government and PSU employees who receive their salaries through a PNB account are exempt from providing a guarantee.

For other borrowers, the existing third-party guarantee requirement will continue. The guarantor’s net worth must be more than the loan amount. One employee cannot stand as guarantor in more than two accounts, and cross-guarantees are not permitted. The provision allowing PLP Heads and CHCAC and above to waive the guarantee on a case-by-case basis remains unchanged.

3. Repayment Tenure for Term Loans

Earlier, the maximum repayment period was 72 months (6 years), or the remaining service period, whichever was earlier. Now, the maximum repayment period has been increased to 84 months (7 years), subject to the remaining service period. Repayment will continue to start one month after the loan is disbursed.

4. Repayment Tenure for Overdraft Facilities

Earlier, the overdraft limit had to be adjusted within the remaining service period or a maximum of 72 months, whichever was earlier. Now, the maximum period has been increased to 84 months, or the remaining service period, whichever is earlier.

The overdraft limit will continue to be adjusted by reducing the drawing power by an amount equivalent to the EMI at the beginning of every month.

5. Additional Extension of Repayment Period

Earlier, there was no specific provision in this section authorising an additional 12-month extension of the repayment period. Now, CHCAC and above have been empowered to increase the repayment period by 12 months.

6. Maximum Permissible Salary Deductions

Earlier, the maximum permissible deductions from gross monthly salary/income were as follows:

• For income up to Rs. 30,000: 50%.
• For income above Rs. 30,000: 60%.

Now, the limits have been revised into three income brackets:

• For income up to Rs. 30,000: 50%.
• For income above Rs. 30,000 and up to Rs. 1 lakh: 60%.
• For income above Rs. 1 lakh: 70%.

The bank has also revised the powers of authorised officials to permit higher deductions. Earlier, AGM-PLP and CHCAC and above could permit deductions of up to 60% and 70%, respectively. Now, AGM-PLPs and CHCAC and above may permit deductions up to 10 percentage points above the prescribed limits for each income bracket, depending on the merits of the case and after assessing the borrower’s expenditure pattern. The maximum permissible deductions under the three brackets can therefore reach 60%, 70% and 80%, respectively.

7. Minimum Take-Home Salary

Earlier, borrowers were required to have a minimum take-home salary of Rs. 15,000 in metro and urban centres and Rs. 10,000 in semi-urban and rural centres after all deductions, including the proposed personal loan instalment. Now, these requirements remain unchanged.

8. Consideration of Spouse’s Income

Earlier, the income of the spouse could be included while assessing repayment capacity if the spouse was a confirmed or permanent employee of the Central Government, State Government, public sector banks, PSUs or eligible reputed companies and institutions, including schools, colleges, universities and hospitals, and received salary through a PNB account.

Now, this provision remains unchanged. The spouse must be made a co-borrower. The status of a company or institution as reputed is subject to approval by the concerned Circle Head after considering its reputation and financial strength.

9. Upfront Fee

Earlier, the upfront fee for public borrowers was 1% of the loan amount plus applicable taxes, without a specified maximum amount in the existing provision. Now, the fee remains 1% of the loan amount plus applicable taxes, but the maximum charge has been capped at Rs. 15,000 plus GST.

10. Documentation Charges

Earlier, documentation charges were Rs. 270 plus taxes for loans up to Rs. 2 lakh and Rs. 450 plus taxes for loans above Rs. 2 lakh. Now, these charges remain unchanged.

11. Charges for Defence Personnel

Earlier, defence personnel were exempt from both the upfront fee and documentation charges. Now, this exemption remains unchanged.

12. PNB Yuva Sahyog Scheme

Earlier, the maximum loan limit under the PNB Yuva Sahyog scheme (TLYPL) was governed by the existing scheme guidelines. Now, the revised maximum loan amount of Rs. 30 lakh also applies to borrowers under PNB Yuva Sahyog. All other terms and conditions of this scheme remain unchanged.

PNB Doctor’s Delight – Personal Loan Scheme for Doctors

1. Maximum Loan Amount

Earlier, the minimum loan amount was Rs. 2 lakh and the maximum was Rs. 30 lakh. Now, the minimum loan amount remains Rs. 2 lakh, while the maximum has been increased to Rs. 40 lakh.

2. Eligibility of Doctors

Earlier, the scheme covered professionally qualified practising or serving doctors holding BDS, MBBS or higher qualifications, with an annual income or salary of at least Rs. 5 lakh.

Now, the scheme also specifically includes salaried employees working under AYUSH systems, such as BAMS, BHMS, BUMS and BSMS, provided they are registered with the respective statutory council and meet the prescribed income and tax-return conditions. The existing eligibility of doctors holding MBBS, BDS and higher qualifications continues.

3. Minimum Annual Income and Tax Conditions

Earlier, doctors were required to have an annual income or salary of at least Rs. 5 lakh. Their gross monthly income or salary had to fall within the taxable bracket during the preceding two years, and duly receipted income tax returns for the last two years had to be kept on record.

Now, these conditions remain unchanged and also apply to eligible salaried AYUSH practitioners covered under the revised criteria.

4. Residential Occupancy Requirement

Earlier, borrowers generally had to reside at their current place of residence for at least two years. This condition did not apply to doctors employed by government departments or institutions.

Now, the existing requirement remains, but CHCAC and above have been authorised to waive the two-year residential occupancy condition on a case-by-case basis.

5. Guarantee Requirement

Earlier, a suitable third-party guarantee acceptable to the bank was generally required. The bank could waive this requirement on a case-by-case basis, depending on the merits of the application.

Now, doctors working as Central Government, State Government or PSU employees who receive their salaries through a PNB account are exempt from providing a guarantee.

For other doctors, the existing third-party guarantee requirement continues. The guarantor must meet the bank’s prescribed conditions, including the requirement that the borrower’s net worth must be more than the loan amount. The provision allowing AGM-PLP and CHCAC and above to waive the guarantee on a case-by-case basis remains unchanged.

6. Alternative Security

Earlier, borrowers could provide tangible collateral security worth 100% of the loan amount as an alternative to a third-party guarantee. The sanctioning authority could also waive the guarantee on merits in eligible cases.

Now, the provision for tangible collateral security worth 100% of the loan amount remains unchanged. However, the specific provision allowing the sanctioning authority to waive the guarantee for confirmed or permanent Central Government, State Government and PSU employees maintaining a PNB salary account and receiving more than Rs. 75,000 per month during the preceding three months has been deleted. The separate exemption for eligible government and PSU doctors receiving salaries through PNB accounts has been introduced.

7. Upfront Fee

Earlier, the upfront fee was 0.90% of the loan amount plus applicable taxes, without a specified maximum amount in the existing provision. Now, the fee remains 0.90% of the loan amount plus applicable taxes, but the maximum charge has been capped at Rs. 15,000 plus GST.

8. Documentation Charges

Earlier, documentation charges under the doctors’ personal loan scheme were Rs. 450 plus applicable taxes. Now, these charges remain unchanged.