PNB Used Car Loan

• Offers a wide array of services: consumer banking, corporate banking, mortgage loans, investment banking, and wealth management.

• Provides digital banking solutions like SMS alerts, online trading, e-Banking, and utility bill payments.

• Ranked among India's leading public sector banks by major financial publications.

Car Loans from PNB

• Offers new Car Loan and used car loans.
• Used car loans applicable for vehicles not older than 3 years.
• Key features:
  • Flexible interest rates
  • Minimal documentation
  • Flexible interest rates
  • Minimal documentation

Features and Benefits of Punjab National Bank Used Car Loans

• Competitive Interest Rates: Punjab National Bank offers attractive interest rate for used car loans depending on the loan amount and tenure.
• Flexible Repayment Tenure: The loan amount including the interest can be repaid in up to 60 Equated Monthly Instalments.
• Collateral Security Waiver; Third party guarantee is waived for certain applicants depending on their nature of work and eligibility.
• Quantum of Loan: For corporate and business borrowers, there is no upper ceiling on the loan amount. Individuals can avail up to 25 times of net monthly income as loan amount.
• Variety of Vehicles: PNB's used car loan can be used to purchase cars of indigenous and foreign makes. It can be used to purchase SUV, MUV, van, jeep and any vehicle that is not older than three years.
• Loan-to-Value: Punjab National Bank finances up to 75% of the used car's value, since the applicant funds the remaining 25% as margin/down payment. 

Punjab National Bank Used Car Loans Eligibility

• Individuals, corporate concerns and non-corporate businesses are eligible to apply for PNB used car loans.
• The net monthly income or the pension amount of the applicant should be at least Rs.25,000. Income of spouse or parent can also be added to satisfy the income criteria.
• Individuals and proprietorship concerns are eligible for loan amounts up to 25 times their net monthly salary or Rs.100 lakh, whichever is lower. For business concerns, the loan quantum is calculated based on the eligibility and there is no upper ceiling on loan amount.
• The margin is 25% for used car loans. The applicant should make a down payment of 25% of the estimated vehicle value.
• Existing PNB customers with a satisfactory repayment track record are generally preferred for a used car loan. 
• PNB also considers used car loan applications on a reimbursement basis for a vehicle already purchased, subject to the applicable margin for reimbursement cases. 

Documentation Requirement for Punjab National Bank Used Car Loans

Banks generally require an ID proof and proof of income when it comes to any loan product. The documentation requirements vary depending on the borrower's source of income and employment nature. Providing the right and necessary documents will ensure that your application is processed fast. Here's a list of documents that you might need before proceeding with your loan application.

• Passport, PAN card, ration card, driving license or employee ID for proof of identity.
• As address proof, you will be required to submit either of electricity bill, telephone bill or ration card.
• As income proof, you will be asked to submit income tax returns statement, Form 16 or a letter from employer.
• Corporate borrowers will be asked to submit balance sheet and income tax returns statement.

Punjab National Bank Used Car Loan Interest Rates

PNB's car loan can be used to purchase a used car, albeit only for personal use. The interest on this loan is computed after factoring operating costs, current repo rate, CRR, etc. Dual interest platforms exist for customers, with the date of loan sanction determining the platform each one is eligible for.

Punjab National Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)

Individuals who have availed a loan after April 1, 2017 will be required to pay interest as per the MCLR platform. This follows directives released by the RBI, with benchmark rates expected to change regularly.

Note: The interest rates are effective from 1 August 2026. 

Used car loan Interest Rates 

Borrowers who fall under the purview of MCLR (typically those opting for a Fixed Rate loan) will be expected to pay an interest rate after factoring in current operating conditions. The current interest on a used car loan from PNB (Fixed Option) starts at 9.70% p.a. This is computed by considering the MCLR for 1 year and adding a spread over it, as shown below:

Interest Rate = MCLR (1 year) + Spread = 8.80% + 0.90% = 9.70%

Punjab National Bank Base and Prime Lending Rates (For existing borrowers)

Note: The interest rates are effective from 1 July 2026. 

EMI Calculator for Punjab National Bank Used Car Loans

EMI calculators come in handy when you need a tentative EMI value and interest amount to plan the future budget. It will also help you decide the right tenure and will give you a fair idea of how much you can afford to borrow.

When you are using PNB's EMI Calculator, you will be prompted to enter details such as the loan amount, annual interest rate, loan period and optional extra payment. The calculator will automatically display details like monthly payment amount, number of payments and total interest amount. Also, a detailed spreadsheet with information like payment date, beginning balance, principal & interest for each month and ending balance can be downloaded and can be used for future reference.

Summary 

A PNB used car loan helps individuals, corporates and businesses finance a pre-owned car up to three years old, with flexible tenure and minimal documentation. The interest rate depends on Punjab National Bank's MCLR, Base Rate or RLLR platform along with the applicant's eligibility, income and vehicle value. Check the interest rates and eligibility criteria above, then use PNB's EMI calculator to plan your loan before applying.

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