PSULast verified: 27 Feb 2026
Punjab National Bank Home Loan Prepayment Rules (2026)
Check current prepayment penalty rules, part-payment limits, notice expectations, and process format for PNB home loans.
Quick Rules Card
| Penalty on Floating Rate | No - Floating-rate individual home loan prepayment generally carries nil penalty. |
| Penalty on Fixed Rate | Conditional - Charges depend on fixed-rate product terms. |
| Max Part-Payment / Year | Typically flexible for retail floating loans |
| Notice Period | Branch-led foreclosure may need prior request |
| Payment Format | PNB One / branch application with loan details |
RBI Context (2014 Circular)
RBI circular DBOD.No.Dir.BC.107/13.03.00/2013-14 (2014) disallows foreclosure/prepayment charges on floating-rate term loans to individual borrowers.
Prepayment Examples
- ₹5L prepayment in year 4 can cut total interest significantly versus waiting till year 10.
- Using tenure reduction after each prepayment compounds savings.
Source Citation
PNB Housing Loan - Charges & ProcessFrequently Asked Questions
Is PNB home loan prepayment penalty-free on floating rate?
Floating-rate individual home loan prepayment generally carries nil penalty.
What is the part-payment limit for PNB home loan?
Current published guidance: Typically flexible for retail floating loans. Always confirm your sanction letter before making a large prepayment.
How can I submit a prepayment request for PNB?
Typical process: PNB One / branch application with loan details. For closure requests, banks may ask for additional authorization and NOC workflows.
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Calculate Your Savings
Use the calculator to estimate tenure reduction and interest savings for your own loan profile.