PNB Car Loan
Punjab National Bank is a prominent name in the Indian banking industry. It is a public sector bank that has caters to national and international customers to give effective banking facilities to its customers for their banking needs. Punjab National Bank is the second largest government-owned bank in India both in terms of its business and its networks. PNB is one of the leading commercial banks in India. PNB offers various banking facilities such credit card, ATM cum debit card mobile banking, net banking, SMS alerts and various loan facilities such as personal loan, home loan, car loan, gold loan and many more. The Bank has the distinction of being the first Indian bank to have been started solely with the Indian capital.
| Name | Punjab National Bank (PNB)[1] |
| Type | Public |
| Industry | Banking, Financial services |
| Headquarters | Dwarka, Delhi, India |
| Founded | 19 May, 1894 |
| Founder | Dyal Singh Majithia, Lala Lajpat Rai |
| Owner | Government of India |
| Website | www.pnbindia.in |
PNB Car Loan
Punjab National Bank Car Loan interest rates charges floating as well as fixed interest rates. The interest rates depend on various factors such as credit score, repayment schedule, monthly income, occupation etc. In this article you will get all the clear cut information regarding PNB Car Loan.
Also Read: Federal Bank Car Loan
Features of PNB Car Loan
- Flexible repayment period up to 7 years
- Affordable processing fee
- Affordable rate of interest
- 15% of the on-road price of a new car and up to 25% for pre-owned car
Interest Rate, Loan Amount, and Other Charges
| Particulars | Details |
| Rate of Interest | New Cars: 7.55% – 7.80% For Used Cars: 8.55% – 8.80% |
| Loan Tenure | Maximum 7 years for new cars Maximum 5 years for used cars |
| Processing Fee | Rs 1,000 to Rs 1,500/ 0.25% of the loan amount |
| Loan Amount | Rs 1 crore 25 times the net monthly income, whichever is lower |
| Prepayment Charges | 2% of the outstanding pre-paid for fixed rate |
| Margin | For New Cars: 15% of on-road price10% in case of tie up with dealers For Used Cars: 25% of on-road price |
Details of Punjab National Bank Car Loan Floating and Fixed Interest Rates
| Types of Borrowers | Floating Interest Rates |
| For women and pride borrowers | 8.9% p.a. |
| For Others | |
| Credit score of 750 and higher | 8.9% p.a. |
| Credit score of 700 to 749 | 9.1% p.a. |
| Credit scores lesser than 700 | 9.35% p.a. |
| Types of Borrowers | Fixed Interest Rates |
| For all borrowers | 9.25% p.a. |
| For pride borrowers | 9.25% p.a. |
How to Apply for PNB Car Loan
You can apply for car loan from Punjab National Bank in two major ways –
Online Mode: To apply for PNB car loan through online you will have to visit the official website of the bank and you can apply for a car loan
Offline Mode: To apply through offline mode, you can visit the nearest bank branch and can apply for the loan.
Eligibility
- Both salaried and self-employed person can avail car loan from PNB
- Minimum 21 years of age
- Maximum 60 years of age at the time maturity
- Should have a monthly income of Rs 20,000
- Be able to provide collateral if required
Documents Required
- Signed application form with photograph
- ID proof
- Age proof
- Income proof
- Bank statement of last 6 months
- Salary slips of last 3 months
- Form 16 or Income Tax Returns
- Sign verification proof
- Additional documents
Factors Affecting PNB Car Loan Interest Rates
Some of the factors for the eligibility of car loan interest rates of PNB are as follows:
- Income: The minimum net income specify by the bank is Rs 20,000 per month. Customers have to meet this requirement because the requirement is mandatory so that the banks are assured of the customer’s ability to repay their loan. If the customers does not meet this requirements then their loan might get rejected, if not the rate of interest charges will be very high. Customers can also include their parent’s salary or spouse’s salary to meet this requirement, who are earning to their income.
- Loan tenure: Customers must opt for shorter tenure because sometimes longer tenures are seen to be financially risky by the banks.
- Debt-to-income-Ratio: Customers who have previously availed loans are currently in the process of repaying other loans are believed to constitute a higher risk by the bank. This is because the customers income is already being used to repay other loans and if these repayments are not made on time, then there is a chance that banks would not be very eager to provide new loans to them, so maintenance of a low debt-to-income-ratio is very important.
- Credit score: Maintenance of a good credit score is one of the great factors for the eligibility of car loan interest rates.
- Relationship with the lender: PNB offers additional concession and benefits for those who already have a working relationship with the bank.
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