If you really think about it, it's easier getting a loan for a car than a loan for bus fare!

    Punjab and Sind Bank Car Loan Interest Rates 20 Jun 2019

    The interest rates on the car loan offered by Punjab and Sind Bank are calculated on the base rate plus the bank’s rate. The following table depicts the Punjab and Sind Bank Car Loan Interest Rates 20 Jun 2019.

    Type of vehicle Breakdown Effective rate of interest
    New Vehicles BR (10.00%)+ 0.25% 10.25% p.a.
    Old Vehicles BR (10.00%)+ 3.00% 13.00% p.a.

    Useful information on other charges and requirements

    The Punjab and Sind Bank has attractive terms on their car loan. The following table shows the requirements of the vehicle loan.

    Particulars Requirement
    Processing fee 0.25% of the loan amount. A minimum of Rs. 1,000 and a maximum of Rs. 10,000 will be charged.
    Prepayment penalty Nil. 1% of the outstanding balance is charged in case of loan take over.
    Documentation fees Stamp and Revenue charges only.
    Minimum income requirements Rs. 1,20,000 p.a.
    Maximum loan amount No ceiling for individuals. Businesses can get loan amount up to five times the annual cash accruals depending on the repayment period chosen.
    Minimum age of the borrower 18 years
    Maximum age of the borrower 65 years
    Maximum age upon loan maturity Non pension service class - Up to 60 years. Pension class and others - Up to 70 years.
    Margin for new cars 10% of the on-road price (excluding accessories and insurance)
    Margin for used cars 25% of the cost of the vehicle
    Maximum age of used car 5 years
    Maximum loan tenure for new cars 84 months
    Maximum loan tenure for used cars 60 months (Repayment period + the age of the car should not exceed more than 84 months)

    Punjab and Sind Bank helps you realize the dream of owning a car! Individuals and businesses can avail of car loans to secure the car of their choice. Customers opt for a new car or a pre-owned car. Get attractive rates of interest on your loan as well as easy repayment tenures. For individuals, there is no ceiling limit on the maximum loan amount you can avail. Added to that, there is no limit to the number of vehicles an individual can purchase as well. In case you wish to prepay the loan, you can do this at absolutely no penalty fees. If you decide to transfer the balance of your loan to another bank, then 1% of the outstanding balance will be charged.

    How to Calculate Interest Rate on my Punjab and Sind Vilas Bank Car Loan

    To calculate the interest payable on your loan, you can use the calculators available online. BankBazaar.com has a Car Loan EMI calculator which will help you determine the financial cost of your loan. To use the calculator, follow these simple steps:

    • Access the BankBazaar website and find the tab “Financial Tools” on the homepage.
    • In the dropdown menu, select “Car Loan EMI Calculator”.
    • Enter details of your loan including Principal Loan Amount, Tenure, Interest Rate, Processing Fee and if you wish to prepay your loan.
    • Click “Calculate” and your results are generated immediately.
    • You can view the EMI amount, interest payable and total cost of the loan.

    If you want to manually calculate the interest on your Punjab and Sind Bank car loan, you can use this formula:

    EMI =

    (Principal) X (Interest rate per month) X (1+Interest rate per month) to the power of loan tenure

    [(1+Interest rate per month) to the power of loan tenure – 1]

    The formula translates to: E = P*r*[(1+r)^n/(1+r)^n-1)]

    E = EMI

    P = Principal loan amount

    R = Rate of interest per month

    N = Number of years

    For example, if you take a Punjab and Sind Car Loan sanctioned in October 2017, for Rs. 4 lakhs at 10.25% for a tenure of 3 years, your EMI will be = [400000 *0.854% [(1+0.854%)^4/(1+0.854%)^4-1)]

    According to the calculator:

    • Your EMI will be Rs. 12,954.
    • Rs. 66,340 will be your total interest.
    • Your processing charges are 0.25% of the loan amount, so that will amount to Rs.4000.
    • At the end of your loan, you will repay the bank Rs. 4,67,340.

    Amortization schedule

    An amortization schedule will give you a clear picture of your entire loan month by month. The breakdown between principal and interest in each EMI will be depicted clearly. The following amortization schedule is an example of the yearly breakdown on a Punjab and Sind Car loan. The principal amount is assumed to be Rs. 4 lakhs, interest 10.25%, processing fees at 0.25% and the tenure is for 3 years.

    Year Principal Paid Interest Paid Total Payment Outstanding loan balance
    2015 Rs. 28,857 Rs. 10,005 Rs. 38,862 Rs. 3,71,143
    2016 Rs. 1,23,081 Rs.32,367 Rs. 1,55,448 Rs. 2,48,063
    2017 Rs. 1,36,307 Rs. 19,141 Rs. 1,55,448 Rs. 1,11,758
    2018 Rs. 1,11,758 Rs. 4826 Rs. 1,16,584 Rs. 0

    Factors affecting Punjab and Sind Bank Car Loan Interest Rates

    Credit Score - When you apply for any loan from a bank, your CIBIL score plays an important role in determining whether or not your loan will be sanctioned. CIBIL scores keep a track of your credit history. If you default on EMIs and loan payments, banks report it to CIBIL. If you maintain a good track record, that is reported as well. So a low score will mean that you are not a good potential customer. Your credibility will be tainted. If banks lend you money, they may do so carefully by increasing the interest rate and other terms and conditions of your loan.

    Income - Income earned factors into your eligibility for a car loan. Punjab and Sind Bank has not mentioned an income criteria for a car loan but you generally need to be earning a minimum amount for your loan to be approved. You can add the income of your spouse, major son or parents to the loan to increase your eligibility. When you show more income, the terms and interest rates of your loan will be more favourable.

    Down Payment - A large down payment makes the loan quantum reduce significantly. Banks have less to recover from you over the course of your loan tenure. This also means that in the event you cannot pay back the loan, the amount to recover will be much smaller. The total interest you pay on your loan will also be lesser. On the other hand, a small down payment leaves a large principal amount left for interest to be charged. The total interest payable will be higher. Smaller down payments make the loans riskier for banks, too, and this could result in banks lending at higher interest rates.

    Loan Tenure - The longer the loan tenure, the more interest you will pay. There’s a longer period of interest chargeable on your loan and therefore, the total interest payable is much more. When you take a loan for a shorter period, your EMI amount will increase, but the interest decreases overall. Shorter terms are favourable to banks because there’s lesser time for market fluctuations and negative events to happen that might hamper your repayment of the loan.

    Car model - Some car models depreciate faster than others. When customers cannot pay the loan back, banks will need to recover the loan money by selling the vehicle. So a model which doesn’t depreciate as fast will fetch you a better loan. The banks are assured they can recover a significant amount if they sell the car.

    Age of the vehicle - When it comes to used cars, the age and condition of the car plays an important role. A used car which can be sold for a good price will work in your favour when it comes to determining your loan quantum, interest rates and other terms and conditions.

    How CIBIL scores affect Punjab and Sind Bank Car Loan Interest rates

    The Credit Information Bureau of India Limited keeps a track of everyone’s credit history. Banks report your credit behaviour to CIBIL. Your credit score comes in handy for both you and the bank when it comes to future loans and credit cards. When you apply for a Punjab and Sind Bank Car Loan, the bank will make an enquiry into your score. A high score will work positively. A low score could mean that you have previously defaulted on payments, spent over your credit limit or not maintained a good credit history. Banks will be reluctant to approve a loan for you. A low score may result in banks increasing their interest rate for you as you are a risky customer for them.

    Tips on Punjab and Sind Bank Car Loan Interest Rates

    • Punjab and Sind Bank Car Loan Interest Rates 2018 is currently at 10.25% p.a.
    • You can add the income of your spouse, major son or parents. They will be co-borrowers or guarantors of the loan.
    • You can check your CIBIL score on the CIBIL website to see what position you are in when it comes to applying for loans. A good score will put you in a better place to negotiate terms and conditions on your loan.
    • There is no maximum limit on the loan quantum or the number of vehicles for individuals seeking a Punjab and Sind Bank Car Loan.
    • Used cars should not exceed 5 years of age.
    • The vehicle should be for non-commercial purposes and be registered as a private vehicle.
    • The processing fee is waived for Punjab and Sind staff, retired employees and pensioners drawing pension through the Punjab and Sind Bank.

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