PNB vs Federal Loan Against Property, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on Punjab National Bank and Federal Bank— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
PNB vs Federal — Loan Against Property Comparison
Key parameters compared side by side.
| Parameter | PNB | Federal |
|---|---|---|
| Interest Rate (p.a.) | 8.9% – 10.9% | 9% – 11.5% |
| Processing Fee | 0.50% (max Rs 50,000) | 1.00% (max Rs 50,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 15 Years | 15 Years |
| Bank Type | Public Sector | Private Sector |
| Founded | 1894 | 1931 |
| Headquarters | New Delhi | Aluva, Kerala |
Interest Rate (p.a.)
PNB
8.9% – 10.9%
Federal
9% – 11.5%
Lower/better: PNB
Processing Fee
PNB
0.50% (max Rs 50,000)
Federal
1.00% (max Rs 50,000)
Max Loan Amount
PNB
Rs 5 Cr
Federal
Rs 5 Cr
Max Tenure
PNB
15 Years
Federal
15 Years
Bank Type
PNB
Public Sector
Federal
Private Sector
Founded
PNB
1894
Federal
1931
Headquarters
PNB
New Delhi
Federal
Aluva, Kerala
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 30 Lakh LAP for 15 years at each bank's lowest rate.
PNB
Federal
Savings: Choosing PNB saves you approximately ₹178 per month, or ₹32,040 in total interest over the loan tenure.
Feature Comparison
Key features offered by PNB and Federal for loan against property.
| Feature | PNB | Federal |
|---|---|---|
| Up to 60% LTV | ||
| Competitive PSU bank rates | ||
| Rural property also accepted | ||
| No prepayment charges | ||
| Up to 65% LTV | ||
| Residential & commercial | ||
| NRI LAP available | ||
| Competitive rates |
Up to 60% LTV
Competitive PSU bank rates
Rural property also accepted
No prepayment charges
Up to 65% LTV
Residential & commercial
NRI LAP available
Competitive rates
Which Is Better — PNB or Federal?
It depends on your priorities. Here is a quick guide.
Choose PNB If...
- Lower starting interest rate (8.9% vs 9%)
- Government-backed (public sector bank)
- Lower maximum rate (10.9% vs 11.5%)
Choose Federal If...
- Trusted brand with strong loan against property offerings
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for loan against property at both banks.
PNB Eligibility
- Property must be free from encumbrance
- CIBIL score: 650+ preferred
- Salaried or self-employed applicants
- Min income: Rs 25,000 per month
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Federal Eligibility
- Property must be free from encumbrance
- CIBIL score: 700+ preferred
- Salaried or self-employed applicants
- Min income: Rs 30,000 per month
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about PNB vs Federal loan against property.
Which bank has a lower loan against property interest rate in 2026 — PNB or Federal?
PNB currently offers a lower starting rate of 8.9% p.a. for loan against property. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum loan against property amount I can get from PNB vs Federal?
PNB offers a higher maximum loan amount of up to Rs 5 Cr. PNB offers up to Rs 5 Cr while Federal offers up to Rs 5 Cr for loan against property.
Which bank charges a lower processing fee for loan against property — PNB or Federal?
PNB charges a processing fee of 0.50% (max Rs 50,000), while Federal charges 1.00% (max Rs 50,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose PNB or Federal for loan against property in 2026?
The best choice depends on your specific needs. PNB offers rates from 8.9%–10.9% with a max tenure of 15 years, while Federal offers 9%–11.5% with 15 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a loan against property from both PNB and Federal?
Yes. Money Matrix Hub is an authorised DSA partner for both PNB and Federal. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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