Punjab National Bank Car Loan Eligibility Overview
Punjab National Bank started its operations in 1895, as a part of Punjab’s economic development process. It currently has 6564 branches including three branches overseas and one Offshore Banking Unit, and also has a large network of approximately 8348 ATMs across India.
Among its wide portfolio of financial products and services, it offers a unique car loan scheme as well. The PNB Car Finance scheme is available to customers for the purchase of a vehicle for personal use by prospective car buyers at competitive interest rates. The type of vehicles that can be purchased using a PNB car loan are: New or old van, car, Multi Utility Vehicle (MUV). Jeep or Sports Utility Vehicles (SUV). Used vehicles should not be more than three years old (since manufacture).
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Punjab National Bank Car Loan Eligibility Criteria
Punjab National Bank (PNB) offers car loans for purchase of cars for personal use and not for purchase of cars for hire/rentals/commercial vehicles. The loan is offered to individuals and also to Corporates/ Business concerns (both corporate or non-corporate).
In order to be eligible for the loan, the borrowers must also fulfill the income eligibility criteria, which are - The net monthly income such as salary, pension, etc. should be at least Rs. 20000/-. In order to increase the eligibility for a higher loan amount, the income of either the spouse, parent(s) or children who have a source of income can also be provided by adding them as co-obligor to the car loan. Only one person can be added as the co-borrower to the car loan.
Factors Affecting Punjab National Bank Car Loan Eligibility
- CIBIL Score: Punjab National Bank will run a credit report before processing your loan application and the credit score reflects your financial records such as your current and closed credit accounts, payment history and duration of using credit actively. If you have a low credit score, the Bank will not consider the application for further processing and will reject it. However, if you have a high credit score, the Bank will review the application and consider other factors to determine the creditworthiness of the applicant. The CIBIL score acts as an initial screening of all car loan applications and the higher the score, the better your chances of getting the loan approved.
- Debt-to-Income Ratio: The debt-to-income ratio is used to evaluate the debt burden of a particular applicant compared to the amount of money earned by him/her in a given period of time. This ratio helps the Bank to estimate the borrower’s repayment capability.
- Amount of loan and loan margin: If the borrower is willing to pay a lumpsum amount as downpayment for the car, then the loan amount to be availed from the Bank decreases and this acts as a positive evaluation factor. The larger the down payment/ borrower’s contribution towards financing the purchase of a car and lesser the loan amount, it is more likely that the car loan will be approved by PNB.
- Age: Those who fall within the desired age criteria can easily avail a loan with PNB. Older applicants have a lesser chance of getting their loan approved unless they opt for a lower loan tenure.
- Loan Tenure: If the applicant opts for a lower car loan tenure, which means that the loan will be repaid more quickly, the terms of loan approval might be more favorable to the applicant.
How to Increase your Punjab National Bank Car Loan Eligibility
- Improve your Credit History/ CIBIL Score: If you have a high credit score from CIBIL or a good credit history, the probability of getting your car loan approved is higher. In order to have a good credit history or CIBIL score, you keep the following tips in mind:
- Pay back all dues in a timely manner. Late payments and defaulting on loans are considered negative credit traits by lenders
- Try to avoid having too many unsecured loans such as credit cards, personal loans, etc. A healthy mix of both secured credit and unsecured loans credit is viewed in a better light by the Bank.
- All your co-signed, guaranteed and joint accounts are vital to your credit score. So it is important to review such accounts frequently, since you are held equally liable for any missed payments made in these accounts.
Punjab National Bank Car Loan Eligibility Calculator
Now, you no longer need to visit PNB Bank branches or wait for a call-back from the Bank’s executives in order to know whether you are eligible for a PNB car loan. In order to evaluate whether you are eligible for a Punjab National Bank Car Loan, you can use the online car loan eligibility calculator. It is quicker and easier to use, and can give you instant results which can help you to zero-in on your application process as well. All you need to provide is the make and model of the car of your choice, the on-road price, your personal details such as date of birth, income, salaried/ self-employed, etc. and click on the “calculate” tab. The results page will show whether you are eligible or not, loan amount and loan tenure that you are eligible for, etc.