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    Punjab National Bank Car Loan Reviews

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    Punjab National Bank Car Loan is Rated as "Excellent!" by 2 Users

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    Car Loan BYTES FROM OUR KITCHEN

    Punjab National Bank is an Indian financial services company based in New Delhi, India. Founded in 1895, the bank has over 5,800 branches and over 6,000 ATMs across 764 cities. It serves over 80 million customers. Available for purchase of New Car/ Van/ Jeep/ Multi Utility Vehicle (MUV)/ Sports Utility Vehicle (SUV) or for old vehicles that are not older than 3 years. Finance will be provided for purchase of vehicle of indigenous/ foreign makes. To know more, follow some simple steps given below to get attractive deals.


    You’re probably eligible for an Punjab National Bank Car Loan if you are

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    Punjab National Bank Car Loan Minimum Age

    At least 21 years old

    Punjab National Bank Car Loan Maximum Age

    Less than 60 years old

    Punjab National Bank Car Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    Punjab National Bank Car Loan Minimum Income

    Earn more than the minimum
    income required


    Your Punjab National Bank Car Loan amount eligibility is based on these factors

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    Punjab National Bank Car Loan Minimum Salary

    Minimum income required
    Rs.20,000 per month

    Punjab National Bank Car Loan Maximum Loan to Value

    Loan capped @
    85% of the ex-showroom price

    Punjab National Bank Car Loan EMI

    EMIs of other loans lower
    your eligibility


    Increase your eligible Punjab National Bank Car Loan amount by these steps

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    02
    Punjab National Bank Car Loan Payoff Outstanding Credit Card Bills

    Pay off your credit card bills

    Punjab National Bank Car Loan Maximum Tenure

    Choose longer tenure loan up to 7 years


    Documentation needed to apply for an Punjab National Bank Car Loan

    • 1. Signed application form with photograph
    • 2. Photo ID and age proof
    • 3. Residence proof
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary – slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:

      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    Punjab National Bank Car Loan Interest RatesUpdated on 27 Jul 2016

    Punjab National Bank Car Loan Details
    Interest Rate 9.65% to 10%
    Processing Fees 1% of Loan amount (Max. Rs. 6,000)
    Pre-Closure Charges Nil
    Loan Tenure 1 year to 7 years
    Guarantor Requirement Guarantor Required

    PNB (Punjab National Bank) Overview

    Punjab National Bank or PNB as popularly known is a leading Govt. of India owned banking and financial services institution headquartered in the capital city of New Delhi. PNB has a rich history with over 120 years of experience in the Indian banking sector.

    The bank was founded in 1894 with its first office in Lahore, now in Pakistan. Since then, PNB has undergone many changes both in terms of structure and functioning. Amalgamations & acquisitions have been a predominant contributing factor in its success story.This mammoth bank has a strong pan Indian presence with over 7,000 ATM’s and 6,081 branches which includes 5 offshore divisions across Asia, Africa and Australia.

    PNB provides a gamut of banking and financial services to over 80 million customers in India & abroad. In addition to the routine banking products such as personal, corporate, MSME and NRI banking services, PNB also has dominant presence in the agricultural and rural banking sector.

    In the financial services and insurance space PNB deals with credit cards,mutual funds, housing and other loans, cash management service, investment banking, wealth management etc. A strong workforce of over 64,000 employees on the rolls makes PNB, one of the largest employers in the Indian banking industry.

    About PNB Car Loan

    Leading the loan products offering is Punjab National Bank Car Loan known popularly as PNB car finance. Positive customer reviews across various channels speak volumes of the service provided by PNB.

    Under the car finance scheme, PNB extends loans to an extensive category of four wheelers which includes new cars, vans, jeeps, multi Utility Vehicle (MUV), sports Utility Vehicle (SUV) and used cars which are not older than 3 years from the date of RTO registration. PNB car loans cover all brands of cars, indigenous and foreign makes.

    The bank accepts loan applications from salaried individuals and business concerns with a minimum annual income of Rs. 2,00,000. A primary applicant has an option to add income of spouse/parent to the car loan application. The amount of car loan disbursed is 25 times of the monthly net salary or 25 lakhs, whichever is lower. To enhance monetary eligibility, a car loan applicant can include income of spouse or parents. For business concerns, there is no upper limit on the loan amount. For new cars procured under the PNB car loan scheme, the repayment tenure is up to 84 EMI’s and 60 months in case of used cars.

    Why choose PNB Car Loan?

    PNB car loans come with minimal frills. Loans are offered towards purchase of a wide range of vehicles which includes small cars, hatchbacks, sedans, Multi utility vehicles(MUV), Sports utility vehicles(SUV) and others. Used cars not older than 3 years(from the date of registration) are also eligible. The monthly income eligibility is just Rs. 20,000.00(Net income). To enhance the monthly income bandwidth, you can add spouse/parents income at the time of application.

    The interest rate slabs are quite low. PNB follows a system of base rate(variable) + fixed component to determine the final interest rate based on the reducing balance principle. At present the aggregated interest rate is just 10.50 % making it a low cost, pocket friendly car loan scheme.

    Processing fee, which is generally 1 % of the total loan amount is waived during various seasonal offers and the loan tenure can extend up to 84 EMI’s. Such enticing terms ought to make you choose PNB as your car loan partner.

    Features of PNB Car Loan

    Nominal Income Eligibility

    Salaried & self employed individuals and business concerns drawing a minimum net income of 20,000 per month are welcome to apply for a car loan with PNB. An applicant can add income of parent/spouse to increase the ceiling. This rider acts an incentive if the individual monthly income is low and does not satisfy the primary condition.

    Loan Amount

    For salaried individuals and proprietorship concerns, up to 25 times the monthly net income or 25 lakhs(whichever is lower) is extended as the car loan amount. For business houses(corporates & non corporate), there is no limit on the loan amount. In both cases, you can apply for a loan for one or more vehicles.

    Maximum Funding

    For new cars, up to 85 % of the ex showroom price is funded by the bank. In case of used cars, the percentage of funding comes down to 70 % and under the tie up arrangement, it is 90 %.

    Hypothecation Loan Agreement

    Cars procured under the PNB car loan scheme is jointly registered in the name of the bank and borrower, which implies the vehicle is hypothecated to PNB until the time the borrower pays off the loan amount. After conclusion of the repayment tenure, borrower becomes the sole owner of the car.

    Car Loan Security

    In certain cases, PNB may require a third party guarantor or collateral to indemnify the car loan. However, this clause is relaxed for permanent employees of state or central government, PSU’s, MNC’s and other listed category of companies. This clause is also waived for salaried class if the ex showroom price of the car exceeds Rs 6 lakhs.

    Low Interest Rates

    Like most of its counterparts in public sector banking, PNB car loan interest rates are built on the concept of base rate system which consists of a fixed and a variable component. The variable component is known as the base rate, generally applicable to all the lending products offered from the bank. The present base rate is 10.25 %. There are three slabs of car loan interest rates.

    Condition Repayment Period Interest Rate

    For individuals/corporates where PNB score is 60 and above or collateral security is available up to 100 %

    Up to 7 years

    Base rate + 0.25%

    10.25 + 0.25 = 10.50%

    All other categories which fall into the above criteria

    Less than 3 years

    Above 3 years

    11.25%

    11.75%

    (Inclusive of base rate)

    Punjab National Bank Car Loan Interest Rates

    As per RBI guidelines, PNB follows the system of MCLR (Marginal Cost Based Lending Rate) to determine applicable rate for auto loans. It offers both fixed and floating rate options to borrowers.

    The table below provides a breakup.

    Punjab National Bank Marginal Cost Based Lending Rate (MCLR) for New Borrowers
    Benchmark MCLR rate 9.40%
    Rate of interest (for select customers) 10.75% (MCLR + 0.35%)
    Rate of interest (others) 11.00% (MCLR + 0.60%)
    Women borrowers 10.65% (MCLR + 0.25%)

    Note: The interest rate is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.

    PNB Car Loan Eligibility

    Punjab National Bank maintains a stern checklist for processing car loan applications to avert defaulting customers in the future. Having said this, if the documents are in place and your application passes the eligibility test, PNB is swift in approving car loan applications. Car Loan Eligibility differs from person to person and may not be the same in all cases. In some situations, PNB may make a loan offer on lower terms, based on the qualification.

    • At least 21 years in age.
    • Salaried, self employed individual & Business concern.
    • Minimum annual income of ? 20,000 per month.
    • Sound credit score and no default history.
    • Able to provide collateral if required.

    PNB manages car loans application with an in house evaluation system that assigns score to each of the applications. Based on its proximity to the benchmark score, the bank takes a call on your application. Ensure all your existing debts are in a clean status as the bank may approach credit bureaus to get a detailed report on your credit history.

    How to calculate EMI for PNB Car Loans?

    PNB Car Loan EMI Calculator is your EMI assistant. This intuitive tool helps you compute EMI, provides breakup of interest charges & miscellaneous fees. A must use tool if you’re someone who believes in planning meticulously.

    Let us tell you on how you can get the best results out of the EMI calculator.

    • To begin with, ascertain the car loan amount, rate of interest and processing fee(%) to get the required output.
    • Navigate using the sliders to select the “loan amount” and “tenure”. You can see summary of the selection towards the end of the scale.
    • In the fields that follow, provide the interest rate and processing fee percentage and click “Calculate”.

    The EMI breakup of car loan and other fine points are displayed for reference.

    Punjab National Bank Car Loan FAQ'S

    1. For what types of vehicles does Punjab National Bank offer car loans?
    2. Punjab National Bank offers car loan for the purchase of new car, jeep, van, Sports Utility Vehicle (SUV) and Multi Utility Vehicle (MUV). PNB Car loan is also offered for the purchase of old car, jeep, van, SUV and MUV which are not older than three years.

    3. Who can apply for a Punjab National Bank Car Loan?
    4. Individuals and business concerns (corporate or non - corporate) can apply for Punjab National Bank car loan for purchase of a four wheeler for private use only.

    5. What is the loan quantum offered for individuals under Punjab National Bank Car Loan?
    6. For individuals and proprietorship concerns, 25 times of net monthly salary, income or pension or Rs. 100 lakhs, whichever is lower, will be offered as total car loan amount. Car loan quantum higher than the amount mentioned will be considered on merits of case.

    7. What is the security to be provided for Punjab National Bank Car Loan?
    8. The security prescribed for Punjab National Bank Car Loan is hypothecation of vehicle purchased using the loan.

    9. What is the processing charges for Punjab National Bank Car Loan?
    10. The processing charges for Punjab National Bank Car Loan is 1% of the loan amount subject to a maximum of Rs. 6,000 and is exclusive of service taxes.

    11. What is the margin for new vehicles to be purchased under Punjab National Bank Car Loan?
    12. For new vehicles, the margin is 15% of the on-road price inclusive of insurance and one time road tax. For purchase of cars where PNB has an arrangement of tie-up with the manufacturers, the margin is 10% of the on-road price.

    13. For old vehicles to be purchased under PNB car loan, what is the prescribed margin?
    14. The margin for old vehicles is 30% of the total value of the vehicle.

    15. What is the minimum income requirement to apply for Punjab National Bank Car Loan?
    16. To be able to apply for Punjab National Bank Car Loan, the customer must have a minimum net monthly salary of pension of Rs. 20,000.

    17. Is third party guarantee required for Punjab National Bank Car Loan?
    18. Yes, collateral security or third party guarantee is required for Punjab National Bank Car Loan. However, this may be waived off by the loan sanctioning authority on merits of individual case.

    19. What is the maximum repayment tenure for Punjab National Bank Car Loan?
    20. The maximum repayment tenure depends on the class of the four-wheeler purchased and if it is new or old. For new van, car, jeep, SUVs and MUVs, the car loan has to be repaid in a maximum of 84 EMIs. For old car, jeep. van, SUVs and MUVs, the loan has to be paid back within 60 EMIs.

    21. Will I incur any penalty if I foreclose my PNB car loan floating interest rate scheme?
    22. If you have availed the car loan under floating interest rate scheme, no prepayment charges will be levied.

    23. What is the prepayment penalty for fixed interest rate car loan scheme?
    24. For fixed rate car loans, 2% on the outstanding amount that is prepaid will be levied as penalty. However, no foreclosure charges will be levied if the car loan is prepaid by the customer from own sources or if the borrower shifts the loan to another bank within 30 days from the date of upward revision in interest rate or if there are other changes in terms of sanction.

    25. What is the quantum of finance offered for corporate and non-corporate applicants?
    26. There is no ceiling on the car loan amount for one or more vehicles when the applicant is a corporate or non-corporates.

    27. Can the income of immediate family members be added for increasing loan eligibility?
    28. Yes, income of immediate family members like parents, spouse and earning children can be added to increase the loan amount and eligibility. However, the income of only one person can be added and that person will also stand as the co-borrower.

    29. Can agriculturists and farmers apply for Punjab National Bank Car Loan?
    30. Yes, customers who are self-employed and involved in agriculture and allied activities can apply for Punjab National Bank Car Loan provided they satisfy the minimum income criteria.

    31. How do I find out my monthly car loan EMI?
    32. EMI is the fixed amount that you must pay to the lender in order to pay off both the principal and interest amount. The EMI amount depends on various factors like tenure, interest rate and principal. You can use an online EMI calculator available on BankBazaar to calculate your monthly instalment amount and also to view your amortization schedule.

    33. How do I get the application form for Punjab National Bank Car Loan?
    34. The application form for Punjab National Bank Car Loan is available online at PNB’s website. Also, you can get a copy of the application form by visiting the nearest branch. You can track the status of the loan application online.

    35. How do I track my car loan application status online?
    36. You can visit the PNB website to view your loan application status online, You will be required to login by entering user name and password. Once you have logged on, you will able to view the car loan application status.

    37. What costs are included under the on-road price of a car?
    38. Costs that are included under the on-road price includes registration charges, insurance charges, cost of accessories, annual maintenance contract (AMC), service package and extended warranty.

    39. What should a salaried applicant submit as income proof for Punjab National Bank Car Loan?
    40. Salaried applicants must submit the following documents as income proof.

      • Salary slips for the last 3 months
      • Form 16
      • Income Tax Returns
      • Bank statements for the last 6 months

    41. What documents does a self-employed person has to submit for income proof?
    42. A self-employed applicant must submit the following documents as income proof.

      • Income Tax Returns for the last 3 years with computation of income
      • Bank statement for the last 6 months
      • Balance sheet and Profit & Loss account for the last 3 years certified/audited by a CA.

    43. Do women borrowers get any special benefits for availing Punjab National Bank Car Loan?
    44. Yes, women borrowers get concession in interest rates when they apply for PNB car loans. The interest rates for women borrowers are as follows.

      Category

      Repayment Period

      Interest Rate

      Women borrowers

      Up to 7 years

      Base Rate + 0.15%

    45. What are the prevailing interest rates under the fixed rate option?
    46.  

      Category

      Repayment Period

      Interest Rate

      All borrowers / Fixed Interest rate

      Up to 7 years

      Base Rate + 0.40%

      (Interest rate is fixed with a reset clause of 3 years)

    47. Will CIBIL score affect my Punjab National Bank Car Loan approval?
    48. Yes, once all required documents are submitted, your credit score will also be considered to make the final decision on whether to approve the car loan.

    49. What do I do if I have doubts and queries regarding PNB car loan?
    50. In case you have any doubts or queries regarding Punjab National Bank Car Loan, you can get in touch with PNB customer care or visit the nearest branch to get your doubts cleared.

    51. What is the rate of interest offered under floating rate scheme for Punjab National Bank Car Loan?
    52.  

      Category

      Repayment Period

      Interest Rate

      To individuals/ corporate where PNB Score is 60 & above OR where collateral security is available upto 100% or above in the form of Mortgage of Immovable Property (IP) or liquid security for borrowers.

      Up to 7 years

      Base Rate + 0. 25%

      Women Borrowers

      Up to 7 years

      Base Rate + 0. 15%

      All other categories of applicants

      Less than 3 years

      Base Rate + 0. 50%

      All other categories of applicants

      3 years and above

      Base Rate + 0. 50%

    53. Does Punjab National Bank offer the facility of joint application for car loan borrowers?
    54. Yes, PNB customers can apply with a co-applicant for car loans.

    55. How is the maximum repayment tenure decided for agriculturists?
    56. For people engaged in agriculture and allied activities, the maximum repayment term is decided at half yearly and yearly intervals coinciding with harvest time.

    57. What documents do I have to submit as identity proof for Punjab National Bank Car Loan?
    58. You can submit any of the following documents as ID proof - voter ID, Aadhaar card, driving license, passport and PAN card.

    59. Will I be able to transfer Punjab National Bank Car Loan balance to another bank?
    60. Yes, you can shift the car loan from PNB to other bank, if required. However, you will be charged a nominal penalty.

    News About PNB Car Loan

    • Punjab National Bank will not be charging processing fee for car and home loans until 30th of September

      New housing and car loans given out by Punjab National Bank will not be charged documentation and processing fee until 30th of September. This offer called 'monsoon bonanza' is for three months. All car and housing loans which are sanctioned between July 1st and September 30th will have documentation and processing fee waived off.

      Bank’s focus during this financial year will be on retail, especially car, housing and education segment.

      29th May 2015

    • Enjoy 0% Processing Fee on PNB Car Loan till December 31

      India’s third largest bank, Punjab National Bank (PNB), has officially launched its Monsoon Bonanza offer, wherein the bank is completely waiving off the processing and documentation charges that apply on its car loan product. According to this update, all car loan applications processed between June 1, 2015 to December 31, 2015 will not include any processing fees or the usual documentation charges upfront. Hopefuls looking for car loans can certainly rejoice, and the bank expects that the customers will take full advantage of this offer.

      29th May 2015

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