Punjab National Bank Home Loan Prepayment Calculator
Illustrative floating rate reference, May 2026. Verify the latest Punjab National Bank home loan terms before acting. Use this page to estimate how recurring prepayments can reduce your total interest and shorten your tenure.
About the lender
Punjab National Bank
Punjab National Bank is India's second-largest public sector bank by assets, formed after the merger of PNB, Oriental Bank of Commerce, and United Bank of India in 2020. PNB is a major home loan lender with products targeting salaried employees, self-employed borrowers, and government employees. PNB home loans are linked to the bank's Repo Linked Lending Rate (RLLR), which resets with RBI policy changes at intervals specified in the sanction letter. PNB also has a separate entity, PNB Housing Finance Limited, which is a listed NBFC with its own home loan products and a different rate and prepayment structure. Borrowers should confirm whether their loan is from PNB (the bank) or PNB Housing Finance before looking up prepayment terms. For prepayment, PNB borrowers can use the PNB ONE mobile app or PNB net banking. In-branch prepayment is also available. The bank applies payments to reduce outstanding principal, and borrowers should confirm whether this reduces EMI or tenure.
How to prepay your home loan – Punjab National Bank
PNB home-loan prepayments go through the PNB ONE mobile app, PNB net banking, or branch servicing. Following the 2020 merger of PNB, Oriental Bank of Commerce, and United Bank of India, the integrated PNB ONE app handles loans from all three legacy entities under a single login.
From PNB ONE: open Accounts → Loan Account → Part Prepayment. Specify the amount and the source account. PNB allows debits from your linked PNB savings, current, or external accounts via NEFT/IMPS. After confirming the payment, you'll receive an SMS confirmation and an entry in your loan-account statement; the updated amortisation schedule typically reflects within 2-3 business days.
One critical clarification: PNB (the bank) and PNB Housing Finance Limited are two different lenders. PNB is a scheduled commercial bank regulated under the Banking Regulation Act; PNB Housing Finance is a listed NBFC with its own rate structure, processing flow, and prepayment portal. Check your sanction letter's letterhead before assuming any of this applies — if it says "PNB Housing Finance", the prepayment process is different and should be initiated via the PNB Housing customer portal at pnbhousing.com instead. Government-employee borrowers under PNB's preferential schemes follow the same prepayment process.
Worked example
If you prepay ₹4,000 every month
Example assumes a ₹40,00,000 loan at 8.65% with 20 years remaining.
| Metric | Without prepayment | With ₹4,000/month extra |
|---|---|---|
| EMI | ₹35,094 | ₹39,094 |
| Total interest | ₹44,22,560 | ₹33,10,578 |
| Tenure | 20 years | 15 years 7 months |
| Interest saved | - | ₹11,11,982 |
| Time saved | - | 4 years 5 months |
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Frequently asked questions
Punjab National Bank prepayment FAQs
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