About Punjab National Bank
Punjab National Bank is a leading public sector bank in India and it has a long history of providing financial products that serve the needs of people from various walks of life. It is a banking institution which came into existence in the year 1894. It has its headquarters in New Delhi, India with a wide network of more than 6,986 bank branches with over 9,935 operating ATMs spread across 764 cities in India. Its key products include wealth management, private equity, mortgage loans, private banking, investment banking, finance, insurance, corporate banking, consumer banking and also credit cards. PNB is one of the leading providers of car loans that are comparatively easy to receive, fast and pocket friendly.
- Car loan is offered to both commercial and individual private individuals.
- Car loans are offered at both fixed as well as floating loan methods.
- Loan repayment period is up to 7 years.
Car loan by PNB is offered at both fixed as well as floating interest rates with the period of loan repayment being 7 years. These interests are different for both men and women. Let us have a look at the various interest rates offered by PNB -
Floating Interest Rates
- The Base Rate is fixed at 9.60%.
- In case of floating interest rate for a maximum period of 7 years, if the person’s or businesses PNB score is more than 60 or if their offer 100% security against loan in the form of mortgage of immovable property or liquid security, then the interest rate becomes base rate plus 0.25%.
- In case of female loan applicants for a maximum tenure of 7 years, the interest rate is base rate plus 0.15%.
- For applicants other than the ones mentioned above, loan period below 3 years, the interest rate becomes base rate plus 1% and for loan period 3 years and more, the interest rates increases and becomes base rate plus 1.50%.
- Here also the base rate is constant at 9.60%.
- For all the applicants for a maximum loan period of 7 years, the rate of interest becomes base rate plus 0.40%. In this case however, a reset clause of loan of 3 years is applied.
- Pre-payment charges - the charges of pre-payment in case of floating interest rate is nil and in case of fixed interest rate, it is 2% on the unpaid left over amount.
- Charges for documentation – These charges tend to vary from time to time. Occasionally no such charges are levied on applicants in case of special offers or specific customers.
- To lessen the interest rate and repay the loan, the applicants can take into consideration the income of family members such as spouse, children or parents also. This will enable them meet the minimum income requirements of Rs. 20,000 stipulated by the bank.
- Period of loan is another factor affecting interest rates. They range between 12 months to 84 months. Longer the loan tenure, lesser will be the EMI payable and higher will be the level of risk involved. Thus applicants generally opt for shorter loan tenures.
- Another important factor is the credit score of the applicant that includes his previous credit card debts, loans and the payments made till date. Through this score, the loan repayment eligibility of the applicant can be easily ascertained. Applicants having a good CIBIL score are more likely to get car loans from the bank.