Punjab and Sind Bank Car Loan Interest Rates

Factors Affecting Punjab and Sind Bank Car Loan Interest Rates

The interest rate applicable for Punjab and Sind Bank car loans shall be uniform for throughout the loan tenure. The rate of interest that you are eligible for will be dependent on multiple factors that have been mentioned below:

• Credit score - When you are availing a car loan, your credit score will play a vital role in determining the rate of interest you are applicable for. It will also determine whether or not your car loan is approved by the bank. Your chances of loan approval increase when you have a healthy credit score of 750 and above.
• Steady income - When determining car loan eligibility, banks also consider the type of occupation of the applicant and whether or not he/she has a steady income. The possibility of a car loan EMI default is lower when the individual has a steady source of income.
• Low debt-to-income ratio - It is always advisable to have a lower debt-to-income ratio as it indicates your capacity to pay car loan EMIs every month.
• Loan tenure - Longer the tenure of the loan, lower will be the rate of interest. However, it is important to consider that a long loan tenure means having to pay more interest over the years. A shorter tenure will fetch a higher rate of interest for a short period of time. Calculate the total interest that you are required to pay for the chosen loan tenure and choose the one wherein your EMI payment is less.
• Vehicle's model and age - This is applicable for pre-owned or used cars. When you are taking a car loan, the vehicle itself will be considered a security against the loan for the entire loan tenure. This means that the bank can hold on to the vehicle in case of outstanding dues. This is the reason why vehicle's model and age are considered by banks while determining the rate of interest.

A good credit score can help you secure lower interest rates on loans and credit cards.

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