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    Punjab National Bank Used Car Loans

    Punjab National Bank was established in 1894 with an objective of providing India, a national bank which would aid the economic development of the country and its citizens. The bank opened for business in the year 1895. PNB has had the privilege of maintaining bank accounts of prominent national leaders such as Mahatma Gandhi, Nehru and Indira Gandhi. In 1900, Punjab National Bank expanded outside Lahore and established branches in Rawalpindi, Karachi and Peshawar. Now, the bank has over 6080 branches including 5 foreign branches and more than 6090 ATM’s. PNB caters to the financial and banking needs of more than 8.9 crore happy customers. The bank offers an extensive range of products and services like consumer & corporate banking, mortgage loans, investment banking and wealth management. Punjab National Bank also provides top-notch technology enabled banking solutions like SMS alerts, online trading facilities, e-Banking and utility bill payments to all its customers. PNB was ranked at 170th position in the list of World's top 1000 banks in 2013 by “The Banker”, a famous financial magazine.

    Punjab National Bank offers used car loans for vehicles that are not older than three years. With unique features like flexible interest rates and minimal documentation requirements, Punjab National Bank used car loan is one of the most sought-after product when it comes to vehicle financing.

    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.

    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.20,000. 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.25 Lakhs, 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 30% for used car loans. The applicant should make a down payment of 30% of the estimated vehicle value.

    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, 2016 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.

    MCLR Benchmark Tenure (Period) Benchmark Rates (MCLR)
    Overnight 9.15%
    1 month 9.20%
    3 months 9.30%
    6 months 9.35%
    1 year 9.40%
    3 years 9.55%
    5 years 9.70%

    Used car loan interest rates – May 2016

    Borrowers who fall under the purview of MCLR will be expected to pay an interest after factoring current operating conditions. The current interest on a used car loan from PNB stands at 9.90% per annum. This is computed by considering the MCLR for 1 year and adding a certain percentage over it, as shown below.

    Interest rate = MCLR (1 year) + 0.50% = 9.90%

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

    Base Rate 9.60% per annum, effective 01/10/2015
    Prime Lending Rate 14.00% per annum, effective 01/05/2012

    Punjab National Bank interest rate for used cars (Based on Base Rate)

    Customers who availed a loan before April 1, 2016 can choose their interest computation mode, opting to either continue with the interest determined by base rate or migrate to an MCLR platform. The current rate ranges between 9.75% per annum and 10.10% per annum, depending on the tenure and relationship a borrower has with the bank.

    Note: Rates mentioned above are valid as of June 8, 2016. These rates are subject to change without prior intimation, at the sole discretion of PNB. Borrowers should check rates at the time of applying.

    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.

    Punjab National Bank is truly a name you can bank upon when it comes to auto financing. With a pioneer in personal loans like PNB, your ride to buying your dream car will be smooth.

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