info@logintoloans.com +91 8885545255

Logintoloans Assistant

Enter Pincode

Personal Details

Key Features of PNB Personal Loan Overdraft (OD) Facility

  • What is the Overdraft Facility: PNB’s personal loan overdraft facility allows salaried applicants to access funds up to a sanctioned limit, similar to a credit line. Borrowers can withdraw funds as needed and pay interest only on the amount utilized, not the entire sanctioned limit. The Drawing Power (DP) is adjusted monthly by reducing it by an amount equivalent to the EMI, ensuring gradual repayment.
  • Loan Amount and Tenure: Available up to ₹20 lakh, depending on the applicant’s salary and creditworthiness. The OD facility must be repaid within the applicant’s remaining service period or a maximum of 6 years, whichever is earlier. This makes it ideal for salaried individuals with a stable income. For example, if an applicant has 5 years of service left, the OD facility will be structured to close within that period.
  • Interest Rates: Interest rates for the OD facility start at 11.25% p.a., aligned with PNB’spersonal loan rates for salaried applicants. Interest is charged only on the withdrawn amount, making it cost-effective compared to a term loan where interest is charged on the entire loan amount from day one. Floating rates apply, and no prepayment penalties are charged, allowing borrowers to repay early without additional costs.
Credit Card Promotion
    • Repayment Mechanism: The Drawing Power (DP) is reduced monthly by an EMI-equivalent amount, ensuring the loan is repaid systematically. Borrowers can deposit surplus funds into the OD account to reduce interest liability, similar to an overdraft against fixed deposits or property. Flexible repayment options include ECS or post-dated cheques, and early repayment is allowed without penalties for floating-rate ODs.
    • Eligibility: Available to salaried individuals, particularly permanent employees of central/state government, PSUs, or reputed institutions with a minimum of 2 years of service and a salary account with PNB. Applicants using the check-off facility (salary deduction by employer) need 3 years of service. A credit score of 750+ and a clean credit history are critical for approval.
    • Purpose: The OD facility is designed for personal expenses, offering flexibility to withdraw funds as needed for emergencies, education, travel, or other needs without reapplying for a new loan. It’s particularly useful for salaried individuals who may need intermittent access to funds, such as for medical emergencies or planned expenses like weddings.
    • Advantages of the OD Facility:
      • Cost-Effective: Interest is charged only on the utilized amount, reducing the overall cost compared to a term loan
      • Flexibility: Borrowers can withdraw and repay multiple times within the sanctioned limit, making it a revolving credit facility.
      • No Prepayment Charges: For floating-rate ODs, borrowers can repay early without penalties, unlike some fixed-rate loans.
      • Quick Access: Funds are available instantly within the approved limit, ideal for urgent needs.
      • Reduced Interest Burden: Depositing surplus funds into the OD account lowers the outstanding balance and interest accrual.
    • Application Process: Apply online via PNB’s website or PNB ONE app, or visit a branch with documents like salary slips, bank statements, and identity proof. The bank verifies income, credit score, and employment details before sanctioning the OD limit. Post-verification, the OD account is linked to the borrower’s salary account for seamless access.
    • Documentation: Same as personal loans: PAN, Aadhaar, salary slips (last 3 months), bank statements (last 6 months), and ITRs (if applicable). For OD, additional proof of employment stability (e.g., appointment letter) may be required.
    • Comparison with Term Loans: Unlike a term loan, where the entire loan amount is disbursed upfront and interest is charged on the full amount, the OD facility allows partial withdrawals, reducing interest costs. The OD is more suitable for borrowers needing intermittent funds, while term loans are better for one-time large expenses.
    • Special Considerations: The OD facility is not available for pensioners or self-employed professionals, as it’s tailored for salaried individuals with predictable income. Borrowers must maintain a good credit score and avoid overutilization to prevent higher interest costs or account restrictions. PNB may offer lower rates for OD applicants with a long-standing salary account or additional collateral.
Who We Are

Benefits of PNB Personal Loan Overdraft (OD) Facility

  • Flexible Fund Access: The OD facility allows borrowers to withdraw funds as needed up to the sanctioned limit (up to ₹20 lakh, based on eligibility). This is ideal for unpredictable or recurring expenses like medical emergencies, education costs, or travel, without the need to reapply for a new loan each time.
  • Interest on Utilized Amount Only: Unlike a term loan, where interest is charged on the entire loan amount from disbursement, the OD facility charges interest only on the amount withdrawn. This significantly reduces the overall interest cost, especially if the full limit is not utilized.
  • Cost-Effective Repayment: Borrowers can deposit surplus funds (e.g., bonuses, savings) into the OD account to reduce the outstanding balance, lowering interest accrual. This flexibility makes the OD more economical compared to fixed EMI-based loans.
  • No Prepayment Penalties: For floating-rate OD facilities, PNB does not charge prepayment or foreclosure penalties. Borrowers can repay the utilized amount early or deposit excess funds without incurring additional costs, enhancing financial flexibility.
    • Revolving Credit Facility: The OD acts as a revolving line of credit, allowing borrowers to withdraw, repay, and re-borrow within the sanctioned limit during the tenure (up to 6 years or remaining service period).
    • Quick and Convenient Access: Once approved, funds are readily available through the linked OD account, often integrated with the borrower’s salary account.
    • Customized for Salaried Individuals: Tailored for permanent employees of central/state government, PSUs, or reputed institutions with a minimum of 2 years of service, the OD facility leverages stable income for easier approval.
    • Systematic Repayment: The Drawing Power (DP) is reduced monthly by an EMI-equivalent amount, ensuring disciplined repayment without overburdening the borrower. This gradual reduction aligns with the borrower’s salary inflows.
    • Versatile Usage: The OD can be used for a wide range of personal expenses, including weddings, home renovations, debt consolidation, or travel. Its flexibility makes it suitable for both planned and unforeseen financial needs.
    • Lower Financial Stress: The ability to withdraw only what is needed and repay at convenience reduces financial strain compared to a lump-sum term loan. Borrowers can manage cash flow effectively, especially during months.
    • High Loan Limit: With a potential limit of up to ₹20 lakh (based on income and credit score), the OD facility caters to significant financial requirements, offering ample liquidity for major personal expenses.
    • Competitive Interest Rates: Starting at 11.25% p.a. (floating), the OD facility offers competitive rates, especially for applicants with high credit scores (750+) and a strong banking relationship with PNB.
    • Simplified Application Process: The OD facility can be applied for online via PNB’s website or PNB ONE app, or offline at a branch. Minimal documentation and quick approval processes ensure hassle-free access.
    • Credit Score Improvement: Timely repayments and responsible use of the OD facility can boost the borrower’s credit score, as it demonstrates financial discipline. A higher credit score can lead to better terms for future loans.
    • Tailored Tenure: The OD tenure is customized to the borrower’s remaining service period, ensuring repayment aligns with income stability. This prevents long-term debt burdens for salaried individuals nearing retirement.
Check Best Gold Loan Offers

Steps to Apply for PNB Personal Loan Overdraft (OD) Facility

  • 1. Check Eligibility
    • Applicant Type: Salaried individuals, specifically permanent employees of central/state government, PSUs, or reputed institutions.
    • Service Period:
      • Minimum 2 years of service with a salary account at PNB.
      • Minimum 3 years of service if using the check-off facility (salary deduction by employer).
    • Age: Typically 21–58 years, capped at remaining service period (max 6 years tenure).
    • Credit Score: 750+ preferred.
    • Income: Stable income; OD limit (up to ₹20 lakh) depends on creditworthiness.
    • Banking Relationship: PNB salary account holders may get better terms.
  • 2. Gather Required Documents
    • Identity Proof: Aadhaar, PAN, passport, voter ID, or driving license.
    • Address Proof: Aadhaar, utility bills, passport, or rent agreement.
    • Income Proof: Last 3 months’ salary slips, 6 months’ bank statements, Form 16/ITR.
    • Employment Proof: Appointment letter, employee ID, or service certificate.
    • Photographs: Recent passport-size photos (as per bank requirements).
    • Application Form: Duly filled and signed PNB personal loan/OD form.
  • 3. Choose Application Method
    • A. Online Application
      • Visit PNB Official Website.
      • Navigate to “Retail Banking” → “Loans” → “Personal Loan/OD”.
      • Click “Apply Online” or use the PNB ONE app.
      • Log in/register, fill the form with personal, employment & loan details.
      • Upload scanned documents (PDF/JPEG formats).
      • Submit form; verify via OTP (if prompted).
      • Track status with reference number via website or app.
    • B. PNB ONE App
      • Download from Google Play Store/Apple App Store.
      • Log in or register.
      • Go to “Loans” → “Apply for Overdraft”.
      • Follow similar steps as website: form fill-up, document upload, submission.
    • C. Offline Application (Branch Visit)
      • Use PNB branch locator or call 1800 180 2222 to find the nearest branch.
      • Collect or download & print the OD application form.
      • Fill and submit with physical document copies to loan officer.
      • Bank verifies documents, income, credit, and employer details.
      • Track application via SMS/email/phone.
    • D. Third-Party Platforms
      • Use trusted sites like Paisabazaar, Buddy Loan, etc.
      • Select PNB, fill the online form, upload documents.
      • Always verify with PNB to ensure authenticity and terms.
  • 4. Undergo Verification and Approval
    • PNB checks document authenticity, credit score (750+ preferred), employment details.
    • Employer may be contacted to verify employment and salary, especially for check-off facility.
    • Approval timeline: 2–7 working days depending on channel and documentation.
    • PNB Swaagat scheme offers faster approvals through OTP-based validation.
  • 5. Sanction and Disbursement
    • Sanction Letter: Details OD limit (up to ₹20 lakh), interest (starting at 11.25%), tenure (max 6 years), and terms.

Eligibility Criteria for PNB Personal Loan Overdraft (OD) Facility

  • Applicant Type
    • Exclusively available to salaried individuals.
    • Eligible categories include:
      • Permanent employees of central or state government.
      • Employees of Public Sector Undertakings (PSUs).
      • Employees of reputed private institutions recognized by PNB.
  • Minimum Service Period
    • Minimum 2 years with the current employer if salary is credited to PNB account.
    • Minimum 3 years required for applicants opting for check-off facility (EMI deducted by employer).
    • Remaining service period must cover the OD tenure (up to 6 years or until retirement, whichever is earlier).
  • Age Criteria
    • Minimum age: 21 years at the time of application.
    • Maximum age: 58 years (or organization’s retirement age), ensuring OD repayment before retirement.
  • Income Requirements
    • Stable monthly income credited to bank account (preferably a PNB salary account).
    • OD limit (up to ₹20 lakh) is based on:
      • Gross monthly income.
      • Existing liabilities.
      • Repayment capacity (EMIs should not exceed 50–60% of net income).
    • Minimum gross monthly salary typically ₹25,000–₹30,000 for sizable limits.
  • Credit Score
    • Preferred score: 750+ for quick approval and better interest rates (starting at 11.25% p.a.).
    • Scores below 700 may attract stricter terms; below 650 may lead to rejection.
    • Clean credit history is essential (no defaults or excessive credit inquiries).
  • Banking Relationship with PNB
    • Applicants with a salary account at PNB for 2+ years get:
      • Preferential interest rates.
      • Faster processing.
      • Higher OD limits (up to ₹20 lakh).
    • Non-PNB customers must provide additional income proof and may face longer processing time.
  • Employment Stability
    • Stable employment confirmed through:
      • Appointment letter or service certificate.
      • Salary slips and consistent bank salary credits.
    • Temporary, contractual, or probationary employees are not eligible.
  • Loan Amount Eligibility
    • OD limit capped at ₹20 lakh or 18–24 times gross monthly income.
    • Based on credit score, repayment capacity, and income.
    • Subject to internal risk and LTV policies.
  • Residential Status
    • Must be a resident Indian.
    • NRIs not eligible.
    • Valid residential proof required (Aadhaar, utility bills, passport).
  • Other Financial Obligations
    • Applicants must have low existing liabilities for better repayment capacity.
    • DTI (Debt-to-Income) ratio should not exceed 50–60% of net monthly income.
  • Check-Off Facility (if applicable)
    • Employer must deduct and remit EMI from salary directly to PNB.
    • Common in government/PSU jobs and enhances approval chances.
Check Best Gold Loan Offers

Documents Required for Overdraft (OD) Facilities - Punjab National Bank (PNB)

  • Application Form:
    - Duly filled and signed PNB Loan Application Form (available on www.pnbindia.in, PNB ONE app, or branches).
    - Must include personal details, employment, income, and desired OD limit (up to ₹20 lakh).
  • Identity Proof (Any one):
    - PAN Card (mandatory)
    - Aadhaar Card
    - Passport
    - Voter ID
    - Driving License
    - Government-issued photo ID card
    Note: Aadhaar is preferred for faster verification, and PAN is compulsory.
  • Address Proof (Any one):
    - Aadhaar Card
    - Passport
    - Utility Bills (not older than 3 months)
    - Registered Rent Agreement
    - Voter ID
    - Driving License
    - Bank Passbook or Statement (with address, not older than 3 months)
  • Income Proof:
    - Last 3 months’ salary slips showing consistent salary credits
    - Last 6 months’ bank statements, preferably from a PNB salary account
    - Form 16 or ITRs (1–2 years), if requested
    - Salary Certificate (not older than 1 month), if required
  • Employment Proof:
    - Appointment Letter confirming permanent employment
    - Service Certificate verifying minimum 2–3 years of employment
    - Employee ID Card
    - Employer Undertaking (for check-off facility)
  • Photographs:
    - 2–3 recent passport-size photographs as per PNB’s specifications
  • Additional Documents (if applicable):
    - Documents for Check-Off Facility: Agreement or undertaking from employer
    - Credit Score Report: Optional, but can help expedite approval
    - Existing Loan Statements: To show repayment history
    - Guarantor Documents: If required, include ID, address, and income proof
  • For Online Applications:
    - Scanned or photographed copies in PDF, JPEG, or PNG format
    - Aadhaar-linked OTP or e-sign for digital processing via PNB ONE or website

Factors Affecting PNB Personal Loan Overdraft (OD) Facility

  • Credit Score:
    - A high credit score (750+) is crucial for approval, higher OD limits (up to ₹20 lakh), and lower interest rates (starting at 11.25% p.a.).
    - Scores below 700 may lead to higher rates or stricter checks; scores below 650 can lead to rejection.
    - Clean credit history (no defaults or excessive inquiries) improves eligibility.
  • Income Level:
    - Monthly income of ₹25,000–₹30,000+ supports higher OD limits.
    - OD limit is 18–24x monthly income, capped at ₹20 lakh.
    - Verified via salary slips and bank statements, preferably from a PNB account.
  • Employment Stability:
    - Permanent employment with a reputed employer is essential.
    - Minimum service: 2 years (PNB salary account) or 3 years (check-off facility).
    - Contractual or temporary employees are usually ineligible.
  • Debt-to-Income (DTI) Ratio:
    - Total EMIs including OD should not exceed 50–60% of net income.
    - High existing loans or credit usage may result in rejection or lower limits.
    - Assessed via bank statements and credit reports.
  • Banking Relationship with PNB:
    - Long-standing PNB salary account (2+ years) yields better terms.
    - Benefits include lower interest rates, higher limits, and faster processing.
    - Non-PNB account holders may face extra checks.
  • Age of the Applicant:
    - Minimum age: 21 years; Maximum: ~58 years or retirement age.
    - Younger applicants may qualify for higher limits and longer OD tenure.
  • Loan Amount and Repayment Capacity:
    - Max OD: ₹20 lakh based on income, credit score, and DTI.
    - Repayment via monthly Drawing Power reduction (like EMI).
    - Existing liabilities are reviewed to assess affordability.
  • Credit History:
    - No defaults, late payments, or recent loan rejections.
    - Low inquiry count in recent months increases chances.
    - Consistent repayment history boosts credibility.
  • Employer Profile:
    - Government and PSU employees preferred for job security.
    - Reputed private sector employees eligible with stricter checks.
    - Employers offering check-off (salary EMI deduction) are favorable.
  • Documentation Accuracy:
    - Must provide valid ID/address proof, salary slips, bank statements, and employment proof.
    - Employer undertaking is needed for check-off facility.
    - Incomplete/inaccurate documents cause delays or rejection.

Frequently Asked Questions (FAQs) for PNB Personal Loan Overdraft (OD) Facility

What is the PNB Personal Loan Overdraft (OD) Facility?
The PNB Personal Loan OD facility is a revolving credit line for salaried individuals, allowing withdrawals up to a sanctioned limit (up to ₹20 lakh) as needed. Interest is charged only on the amount withdrawn, not the entire limit, and the Drawing Power (DP) is reduced monthly by an EMI-equivalent amount.
Who is eligible for the PNB Personal Loan OD Facility?
  • Applicant Type: Permanent salaried employees of central/state government, PSUs, or reputed private organizations.
  • Service Period: Minimum 2 years with a PNB salary account or 3 years for check-off facility (employer EMI deduction).
  • Age: 21–58 years (repayment within 6 years or remaining service period).
  • Credit Score: Preferably 750+ for better terms.
  • Income: Stable monthly income (typically ₹25,000+), with OD limit based on repayment capacity.
What is the maximum OD limit offered?
The maximum OD limit is ₹20 lakh, determined by:
  • 18–24 times gross monthly income.
  • Credit score (750+ for higher limits).
  • Debt-to-Income (DTI) ratio (total EMIs not exceeding 50–60% of net income).
What are the interest rates for the OD facility?
  • Interest rates start at 11.25% p.a. (floating) for salaried individuals with high credit scores and PNB salary accounts.
  • Rates may vary (up to 17.95% p.a.) based on credit profile, income, and market conditions.
  • Interest is charged only on the withdrawn amount, calculated daily and debited monthly.
What is the repayment tenure for the OD facility?
The tenure is up to 6 years or the applicant’s remaining service period, whichever is shorter. The Drawing Power is reduced monthly by an EMI-equivalent amount, ensuring systematic repayment.
What documents are required to apply?
  • Application Form: Filled and signed PNB loan form.
  • Identity Proof: Aadhaar, PAN (mandatory), passport, voter ID, or driving license.
  • Address Proof: Aadhaar, utility bill, passport, or rent agreement.
  • Income Proof: Last 3 months’ salary slips, 6 months’ bank statements, Form 16/ITR (if required).
  • Employment Proof: Appointment letter, service certificate (2–3 years’ service), or employee ID.
  • Photographs: 2–3 recent passport-sized photos.
  • Check-Off Facility (if applicable): Employer undertaking for EMI deduction.
How can I apply for the PNB OD facility?
  • Online: Via PNB’s website (www.pnbindia.in) or PNB ONE app. Fill the form, upload documents, and submit.
  • Offline: Visit a PNB branch, submit the application form and documents.
  • Third-Party Platforms: Through authorized platforms like Buddy Loan, but verify terms with PNB.
Approval typically takes 2–7 working days, faster for PNB salary account holders.
Is collateral required for the OD facility?
No, the PNB OD facility is unsecured, requiring no collateral or guarantor. Approval depends on income, credit score, and employment stability.
What is the processing fee for the OD facility?
Up to 1% of the sanctioned OD limit (plus GST), subject to PNB’s policies. Check the latest fee structure on PNB’s website or at a branch.
Are there prepayment or foreclosure charges?
For floating-rate OD facilities, there are no prepayment or foreclosure charges, allowing early repayment without penalties. Depositing surplus funds reduces the outstanding balance and interest costs.

List of Overdraft (OD) Facilities at Punjab National Bank

  • Personal Loan Scheme for Public
  • Personal Loan Scheme for Pensioners
  • Other Specific Schemes
  • Personal Loan Overdraft for Salaried Individuals
  • Personal Loan Overdraft for Doctors
  • PNB Doctor’s Delight
  • Overdraft Against Fixed Deposit
  • Loan Against Securities