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
At least 21 years old
Less than 60 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Your Punjab National Bank Car Loan amount eligibility is based on these factors
Minimum income required
Rs.20,000 per month
Loan capped @
85% of the ex-showroom price
EMIs of other loans lower
Increase your eligible Punjab National Bank Car Loan amount by these steps
Pay off your credit card bills
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 10 Feb 2016
|Interest Rate (Monthly reducing balance)|| Base Rate+(0.25% to 0.50%) |
I-Base – 9.60%
|Processing Fees||Waived upto 31.03.2016|
|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 LoanNominal 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
(Inclusive of base rate)
PNB Car Loan Interest Rate
|Up to 84 EMI’s for news cars & 60 EMI’s for used cars|
|1% of the loan amount, maximum ceiling of Rs. 6,000.00|
Max. Loan Amount
|Up to 25 Lakhs|
|Guarantor required(Bank’s discretion)|
Do inquire with the nearest branch for exclusive promotional and festive offers from PNB car loans. You may be eligible for a lower interest rate or waiver on processing fees.
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.
PNB Car Loan FAQs
- How do I determine the status of my PNB car loan application?
If you submitted the application online, there will be a unique tracking number provided by the automated portal. You can note the tracking number and call the customer service to ascertain the status. If the application was made with a specific branch, the representatives will keep you updated.
- I would like to apply for a PNB car loan. How do I do that?
Use the relevent link available on pnbindia.in to apply for a car loan online. You can also walk into the nearest branch to fill and submit application manually. Do call the branch to confirm before the visit.
- Is there a prepayment charge if I decide to pre close the PNB car loan account ?
If the loan account is closed within three years, PNB charges 2% of the outstanding balance as prepayment penalty.
- Can a loan be availed for used car?
Yes. PNB offers loan for cars not older than 3 years from the date of registration. The repayment period for used cars is up to 60 months.
- What is the maximum amount of car loan provided by PNB?
PNB sanctions up to 25 times monthly net income for individuals. The maximum amount cannot exceed 25 lakhs. For businesses, the loan eligibility is determined on the basis of requirement, details of which can be obtained from the nearest branch.
- How do I contact Customer care for more details on PNB Car Loan?
If you have any queries about the terms of car loans or need updated information before applying, our customer service desk will be happy to answer all your queries at 91 44 6651800
News About PNB Car Loan
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