• Punjab and Sind Bank Personal Loan Interest Rates

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    Punjab and Sind Bank offers personal loans with an interest rate starting from 12.75% p.a. with flexible tenure options up to 60 months. The bank offers personal loans particularly for salaried individuals and pensioners.

    Particulars Salaried Individuals Pensioners
    Interest Rate 13.5% p.a. onwards 12.75% p.a.
    Processing Fee 1% of the loan amount 1% of the loan amount
    Loan Tenure Up to 60 months Up to 60 months
    Loan Amount Maximum of 18 times the monthly salary or Rs.3 lakh, or 1.5 times of the annual salary of the individual whichever is lesser.
    • Pensioners up to 65 years old: Up to 15 times the monthly pension of the individual or Rs.3 lakh, whichever is lesser
    • Pensioners above 65 years old and up to 75 years old: Rs.1 lakh or up to 10 times the monthly pension of the individual, whichever is lesser.
    Age criteria
    • Minimum: 21 years old
    • Maximum: 60 years old (Govt. Employees); 65 years (Private company employees)
    • Minimum: 21 years old
    • Maximum: 70 years old
    Credit Score 750 750
    Lowest EMI per Lakh Rs.2,301 Rs.2,263

    Factors affecting PSB personal loan interest rates

    • Employment status of the applicant: PSB takes into consideration the type of employment of the applicant, whether he/she is a salaried individual working as a government employee or in a private organisation. If the applicant is a pensioner, the interest rates are set accordingly as well.
    • If the individual holds an account with PSB: If the applicant holds a savings or a salary account with PSB, then the interest rate that will be offered will be better.
    • The repayment ability of the applicant: PSB takes into consideration the income of the individual and his/her past repayment track record which will be reflected in the individuals’ CIBIL score.
    • The tenure of the loan: If the borrower chooses the maximum tenure of 60 months, then it is most likely that the interest rate will be set higher as compared to loans with shorter tenures.

    Illustration:

    1. For individuals with a salary of Rs.30,000 per month

    Let’s assume that Mr. Ram earns a monthly salary of Rs.30,000 and avails a personal loan of Rs.2 lakh with a repayment tenure of 1 year. The bank sets a processing fee of 1% and an interest rate of 13.5% p.a. In order to repay the loan, Mr. Ram will have to pay an EMI of Rs. 17,910 to repay the Rs.2 lakh.

    Loan Amount Rs.2 lakh
    Processing Fee 1%
    Year Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs. 15,660 Rs. 2,250 Rs. 17,910 Rs. 1,84,340
    2 Rs. 15,837 Rs. 2,074 Rs. 17,911 Rs. 1,68,503
    3 Rs. 16,015 Rs. 1,896 Rs. 17,911 Rs. 1,52,488
    4 Rs. 16,195 Rs. 1,715 Rs. 17,910 Rs. 1,36,293
    5 Rs. 16,377 Rs. 1,533 Rs. 17,910 Rs. 1,19,916
    6 Rs. 16,561 Rs. 1,349 Rs. 17,910 Rs. 1,03,355
    7 Rs. 16,748 Rs. 1,163 Rs. 17,911 Rs. 86,607
    8 Rs. 16,936 Rs. 974 Rs. 17,910 Rs. 69,671
    9 Rs. 17,127 Rs. 784 Rs. 17,911 Rs. 52,545
    10 Rs. 17,319 Rs. 591 Rs. 17,910 Rs. 35,225
    11 Rs. 17,514 Rs. 396 Rs. 17,910 Rs. 17,711
    12 Rs. 17,711 Rs. 199 Rs. 17,910 Rs. 0

    2. For individuals with a salary of Rs.50,000

    Let’s assume that Mr. Roy earns a monthly salary of Rs.50,000 and has availed a personal loan to consolidate his debts. Since Mr. Roy’s loan repayment has been poor in the past, his CIBIL score is 610 which resulted in the bank setting a higher interest rate of 14% p.a. The processing fee is set at 1% as well and Mr. Roy has chosen a repayment tenure of 12 months. To repay the loan in 1 year, the EMI across the tenure has been set at Rs.26,936.

    Loan Amount Rs.3 lakh
    Processing Fee 1%
    Year Principal Paid(A) Interest Paid(B) Total Payment (A+B) Outstanding Loan Balance
    1 Rs. 23,436 Rs. 3,500 Rs. 26,936 Rs. 2,76,564
    2 Rs. 23,710 Rs. 3,227 Rs. 26,937 Rs. 2,52,854
    3 Rs. 23,986 Rs. 2,950 Rs. 26,936 Rs. 2,28,868
    4 Rs. 24,266 Rs. 2,670 Rs. 26,936 Rs. 2,04,602
    5 Rs. 24,549 Rs. 2,387 Rs. 26,936 Rs. 1,80,053
    6 Rs. 24,836 Rs. 2,101 Rs. 26,937 Rs. 1,55,218
    7 Rs. 25,125 Rs. 1,811 Rs. 26,936 Rs. 1,30,092
    8 Rs. 25,418 Rs. 1,518 Rs. 26,936 Rs. 1,04,674
    9 Rs. 25,715 Rs. 1,221 Rs. 26,936 Rs. 78,959
    10 Rs. 26,015 Rs. 921 Rs. 26,936 Rs. 52,944
    11 Rs. 26,318 Rs. 618 Rs. 26,936 Rs. 26,626
    12 Rs. 26,626 Rs. 311 Rs. 26,937 Rs. 0

    FAQs

    1. Is the interest rate for a personal loan for a salaried individual set at 13.50%?

      2. No, it starts at 13.50% p.a., it can be set higher depending on a number of factors that will be taken into consideration by PSB.

    2. Will I need a guarantor to avail a personal loan from PSB?

      3. Yes, a guarantor will be required, either a spouse or a major son if the applicant is a pensioner.

    3. What is the basic eligibility for a pensioner to avail a loan from PSB?

      4. The pensioner should have his/her pension account with PSB and should be a maximum of 70 years old when applying for the loan.

    4. Can I avail a PSB personal loan online?

      5. No, you will have to visit the nearest branch of PSB to apply for a personal loan.

    5. Who do I get in touch with to know the details of a personal loan offered by PSB?

      6. Call the customer care unit of PSB at 1800-419-8300 to know the various details of personal loans offered by them.

    A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

        

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