• Punjab National Bank (PNB) Car Loan Interest Rates 08 Dec 2021

    Punjab National Bank (PNB) Car Loan interest rates range from 8.9% to 9.35% p.a. The bank charges floating as well as fixed interest rates for car loans.

    The interest rate will depend on various factors such as credit score, repayment period, nature of interest rate, monthly income, occupation, etc.

    Punjab National Bank (PNB) Car Loan

    Features New Cars

    Interest rate

    Floating rate: 8.9% p.a. to 9.35% p.a.

    Fixed rate: 9.25% p.a.

    Loan tenure

    New Car: Up to 7 years

    Used Car: Up to 5 years

    Processing fee

    Rs.1,000 to Rs.1,500

    Loan amount

    Rs.1 crore or 25 times the net monthly income, whichever is lower

    Lowest EMI per lakh

    Rs.802 (At 9.25% p.a. fixed interest rate for a 7-year tenure)

    Other Charges

    Proposed inspection charges


    Prepayment charge

    Floating rate: Nil

    Fixed rate: 2% of the outstanding pre-paid

    Details of Punjab National Bank (PNB) Car Loan Floating and Fixed Interest Rates

    Punjab National Bank (PNB) provides two car loan schemes and they are, PNB Car Loan and PNB Pride Car Loan for Government Employees.

    Type of borrower Floating interest rate

    For women and Pride borrowers

    8.9% p.a.

    For others

    Credit score of 750 and higher

    8.9% p.a.

    Credit score of 700 to 749

    9.1% p.a.

    Credit score lesser than 700

    9.35% p.a.

    Type of borrower Fixed interest rate

    For all borrowers

    9.25% p.a.

    For Pride borrowers

    9.25% p.a.

    Factors affecting Punjab National Bank Car Loan Interest Rates

    • Low interest rates are one of the most salient features of any car loan scheme. There are numerous factors that have an impact on the interest rates for a Punjab National Bank Car Loan. Some of these are listed below:
    • Net Income: The minimum net income stipulated by the bank is Rs.20,000 per month. In order to meet this requirement, customers can also include the salary of their parent, spouse, or children who are earning to their income. However, only one individual’s income can be taken and this individual will be the co-borrower. This requirement is mandated so that banks are assured of the customer’s ability to repay their loan. If customers do not meet this requirement then their loan might get rejected, if not the rate of interest charged will be very high.
    • Loan Tenure: Banks offer tenures ranging generally from 12 months to 84 months. Longer tenures are opted by most applicants as the EMI amount to be paid each month is less, but this also results in the customer paying a lot more as the interest. Longer tenures are also sometimes seen to be financially risky by the banks. Hence shorter tenures are advised.
    • Debt-to-income Ratio: Customers who have previously availed loans or are currently in the process of repaying other loans are believed to constitute a higher financial risk by the bank. This is because the customer’s income is already being used to repay other loans and if these repayments are not made on time then there is a chance that banks would not be very eager to provide new loans to them.
    • CIBIL Scores: Provided by the Credit Information Bureau of India Limited, these scores summarize a person’s prior debts, payments, and loans and thereby determine the eligibility of the customer. Banks and financial institutions prefer providing loans to those who have a good CIBIL score. If a customer has a low score, then banks are automatically more wary of providing them with loans as there is a reduced chance of them repaying loans on time with the interest amount. Hence, potential customers are advised to have a good CIBIL score so as to avail loans a lot more easily.
    • Relationship with the lender: A previously established relationship with the bank is an added benefit. Punjab National Bank offers additional concessions and benefits for those who already have a working relationship with the bank.


    1. Is there a margin on PNB Car Loans?

      Yes, for new cars, the margin is 15% of the on-road price of the car that includes one-time road tax and insurance charges. For old cars, the margin is 30% of the value of the car. If PNB has a tie-up with the car dealer or manufacturer, then the margin is 10%. If you have taken a car loan to reimburse expenses for buying a new car out of your own funds, then the margin will be 25%.

    2. Do I need to give any security for getting a car loan from PNB?

      Yes, the car that you purchase should be hypothecated to the bank.

    3. Is a guarantee necessary to apply for a PNB Car Loan?

      Yes, a third-party guarantee or a collateral that is deemed valid by the bank can be furnished as guarantee. Sometimes, the need for guarantee can be waived depending on the applicant.

    4. Who can apply for the PNB Pride Car Loan for Government Employees?

      As the name suggests, permanent employees working with the Central or State government, Paramilitary Forces, and Defence Forces can apply for this loan.

    5. If I like a vehicle that is 5 years old, will I be able to buy it with a PNB used car loan?

      No, generally, PNB offers car loans to finance purchases of cars that are not older than 3 years.

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