If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Punjab National Bank Car Loan is Rated as "Excellent!" by 2 Users

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    Punjab National Bank Car Loan

    Punjab National Bank is an Indian financial services company based in New Delhi, India. Founded in 1894, the bank has over 6,900 branches and over 10,600 ATMs across 764 cities. It serves over 80 million customers. The bank offers loans that can be used to purchase a new car, van, Multi Utility Vehicle (MUV), Sports Utility Vehicle (SUV), or any used vehicle that is not more than 3 years old. Customers can also avail financial aid to buy vehicles of indigenous and foreign makes. To know more, follow some simple steps given below to get attractive deals.

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

    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

    Earning more than the minimum
    required income

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

    Punjab National Bank Car Loan Minimum Salary

    Minimum required income
    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

    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. Bank statements of last 6 months
    • 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 23 Feb 2019

    Punjab National Bank Car Loan Details
    Interest Rate 8.50% to 8.95%
    Processing Fees Fully waived under Monsoon Bonanza Offer from 01.06.2017 to 30.09.2017
    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 government-owned banking and financial services institution headquartered in the capital city of New Delhi, India.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- India presence with over 10,000 ATMs and more than 6,900 branches which includes 5 offshore divisions across Asia, Africa and Australia. Additionally, PNB also has international subsidiaries in United Kingdom (UK) and Bhutan along with a joint venture in Nepal and international association in Kazakhstan.

    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 70,000 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 net monthly income of Rs.20,000. 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 Rs.100 lakh, 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 EMIs 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 interest rate depends on the 1-year Marginal Cost of Funds-Based Lending Rate (MCLR) in addition to a fixed component that ranges from 0.60% to 1.05% depending on the selected scheme and credit score, making it a low-cost, pocket-friendly car loan.

    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 EMIs. Such enticing terms ought to make you choose PNB as your car loan partner.

    Perfect Car Loan Deals for you

    Features of PNB Car Loan

    Nominal Income Eligibility

    Salaried & self-employed individuals and business concerns drawing a minimum net income of Rs.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 as 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 Rs.100 lakh(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 a 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 can be relaxed for individuals who have a credible credit profile.

    Terms of Loan Repayment

    If an individual decides to avail this loan in order to purchase a new car, Jeep, van, SUV or MUV, he or she will be eligible to repay the debt with a maximum of 84 EMIs. However, in case of a used vehicle, the loan repayment has to be done within 60 EMIs.

    If the borrower is a part of the agriculture industry or any other allied activity, the loan can be repaid at yearly or half-yearly intervals during the time of the harvest.

    Prepayment Fees

    There are no additional prepayment charges applicable if the candidate has availed a loan at a floating interest rate. On the other hand, an additional fee of 2% of the outstanding prepaid amount has to paid by the borrower if the car loan has been taken at a fixed rate of interest. Prepayments are exempt of any charges if:

    • The borrower prepays the loan using personal resources
    • There is a change in the terms of the loan sanction
    • The individual moves to a different bank in 30 days post an upward interest revision

    Documentation and Verification Fees

    Loans carry a small processing charge in addition to security inspection or verification fees. While the banks usually charges 1% of the loan amount till a maximum of Rs.6,000, this amount can be waived as part of a seasonal offer.

    There is no need for any periodical inspection when the loan is repaid regularly, therefore, no charges are levied in such a scenario. However, if a loan account under the NPA category has been receiving irregular repayments, the borrower will have to obtain PNB 551 twice every year after regular inspections. The candidate has to pay a fine of Rs.1,000 in addition to the applied GST in such a scenario.

    Low Interest Rates

    Like most of its counterparts in public sector banking, PNB car loan interest rates consist of a fixed and a variable component. The variable component is known as the Marginal Cost of Funds-Based Lending Rate (MCLR), and is generally applicable to all the lending products offered from the bank. The present 1-year MCLR is 8.30% as on 7 March 2018. Existing borrowers under the base rate system or Benchmark Prime Lending Rate (BPLR) can choose to continue with their existing interest rates until the contract has expired, or can shift to the MCLR lending rates by contacting their concerned branch. The current base rate is 9.15% effective from 1 September 2017.

    Category Repayment Period Interest Rate
    Floating interest rates:
    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% 9.15 + 0.25 = 9.40%
    For women applicants Up to 7 years Base rate + 0.15% 9.15 + 0.15 = 9.30%
    All other categories which do not fall into the above criteria ALL Base rate + 0.50% 9.15 + 0.50 = 9.65%
    Fixed interest rates:
    Applicable to all candidates Up to 7 years Base rate + 0.40% 9.15 + 0.40 = 9.55% (Available with a 3-year reset clause)

    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 (7 March 2018) 8.30%
    Floating rate of interest:
    Rate of interest for women, applicants of PNB PRIDE, and businesses (irrespective of credit score) MCLR + 0.60% 8.30 + 0.60 = 8.90%
    Others 750 credit score & above - MCLR + 0.60% = 8.90% 700 to 749 credit score - MCLR + 0.80% = 9.10% Less than 700 credit score - MCLR + 1.05% = 9.35%
    Fixed rate of interest:
    Applicable to all individuals including borrowers of PNB PRIDE MCLR + 0.95% 8.30 + 0.95 = 9.25%

    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. The above mentioned interest rates are subject to change as per the revised GST rates.

    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 professional, self-employed individual, and corporate requirement
    • Minimum net income of Rs.20,000 per month
    • Sound credit score and no default history.
    • Able to provide collateral if required.

    PNB manages car loan applications using 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 regarding the concerned 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. It is 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?

      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.

    2. Who can apply for a Punjab National Bank Car Loan?

      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.

    3. What is the loan quantum offered for individuals under Punjab National Bank Car Loan?

      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.

    4. What is the security to be provided for Punjab National Bank Car Loan?

      The security prescribed for Punjab National Bank Car Loan is hypothecation of vehicle purchased using the loan.

    5. What is the processing charges for Punjab National Bank Car Loan?

      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 GST.

    6. What is the margin for new vehicles to be purchased under Punjab National Bank Car Loan?

      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.

    7. For old vehicles to be purchased under PNB car loan, what is the prescribed margin?

      The margin for old vehicles is 30% of the total value of the vehicle.

    8. What is the minimum income requirement to apply for Punjab National Bank Car Loan?

      To be able to apply for Punjab National Bank Car Loan, the customer must have a minimum net monthly salary or pension of Rs.20,000.

    9. Is third party guarantee required for Punjab National Bank Car Loan?

      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.

    10. What is the maximum repayment tenure for Punjab National Bank Car Loan?

      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.

    11. Will I incur any penalty if I foreclose my PNB car loan floating interest rate scheme?

      If you have availed the car loan under floating interest rate scheme, no prepayment charges will be levied.

    12. What is the prepayment penalty for fixed interest rate car loan scheme?

      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.

    13. What is the quantum of finance offered for corporate and non-corporate applicants purchasing a vehicle for business concerns?

      There is no ceiling on the car loan amount for one or more vehicles purchased for business purposes whether the applicant is a corporate or non-corporate.

    14. Can the income of immediate family members be added for increasing loan eligibility?

      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.

    15. Can agriculturists and farmers apply for Punjab National Bank Car Loan?

      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.

    16. How do I find out my monthly car loan EMI?

      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.

    17. How do I get the application form for Punjab National Bank Car Loan?

      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.

    18. How do I track my car loan application status online?

      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.

    19. What costs are included under the on-road price of a car?

      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.

    20. What should a salaried applicant submit as income proof for Punjab National Bank Car Loan?

      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
    21. What documents does a self-employed person has to submit for income proof?

      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.
    22. Do women borrowers get any special benefits for availing Punjab National Bank Car Loan?

      Yes, women borrowers get concession in interest rates when they apply for PNB car loans. The interest rates for women borrowers are as follows.

    23. Category Repayment Period Interest Rate
      Category Repayment Period Interest Rate
      Women borrowers (floating rate of interest) Up to 7 years MCLR + 0.60%
      Women applicants (floating interest rate) Up to 7 years Base rate + 0.15%
    24. What are the prevailing interest rates under the fixed rate option?
    25. Category Repayment Period Interest Rate
      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)
      All applicants (fixed interest rate) Up to 7 years MCLR + 0.95%
    26. Will CIBIL score affect my Punjab National Bank Car Loan approval?

      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.

    27. What do I do if I have doubts and queries regarding PNB car loan?

      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.

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


    29. Category Repayment Period Interest Rate
      To individuals/ corporate where PNB Score is 60 and 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 ALL Base Rate + 0.50%
      Women borrowers, applicants of PNB PRIDE, and corporates (irrespective of credit score) Up to 7 years MCLR + 0.60%
      Others Up to 7 years 750 credit score and above - MCLR + 0.60% 700 to 749 credit score - MCLR + 0.80% Less than 700 credit score - MCLR + 1.05%
    30. Does Punjab National Bank offer the facility of joint application for car loan borrowers?

      Yes, PNB customers can apply with a co-applicant for car loans.

    31. How is the maximum repayment tenure decided for agriculturists?

      For people engaged in agriculture and allied activities, the maximum repayment term is decided at half yearly and yearly intervals coinciding with harvest time.

    32. What documents do I have to submit as identity proof for Punjab National Bank Car Loan?

      You can submit any of the following documents as ID proof - voter ID, Aadhaar card, driving license, passport and PAN card.

    33. Will I be able to transfer Punjab National Bank Car Loan balance to another bank?

      Yes, you can shift the car loan from PNB to other bank, if required. However, you will be charged a nominal penalty.

    Punjab National Bank Car Loan Reviews

    • Punjab National Bank Car Loan
      "Good experience"
      0.5 4.0/5 "Great!"
      One of my colleague recommended PNB to me. I went directly to the nearest branch of PNB and submitted all the required documents for a car loan. It took around 10 to 15 days for disbursing my loan. PNB is much better than private banks. Rate of interest & charges are lesser than private banks.
      Was this review helpful? 19
      , chennai
      Reviewed on Aug 11, 2014
    • Punjab National Bank Car Loan
      "Satisfied with Service"
      0.5 5.0/5 "Blown Away!"
      PNB Car Loan main advantage is they follow up was good, its was user friendly, interest rate was quite less than market it was 10.05% i got the charges was normal, actually it was zero processing fee on 31st on but i got applied on 1st it was .05%, i gave the documents on 1st and loan amount got credited on 6th, it was good.
      Was this review helpful? 25
      , secunderabad
      Reviewed on Aug 08, 2014
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