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Car Loan

About the Bank

Punjab National Bank (PNB) is an Indian multinational bank owned by the state. PNB was founded in the year 1894, in Lahore, now in Pakistan. Punjab National Bank is spread across 746 cities and has a network of 6635 branches and 8622 ATMs as on 30th September 2015, serving over 80 million customers.

PNB has many accolades under its name including the ‘IBA Banking Technology Award’ under ‘Best Risk Management Initiatives’ and ‘Agriculture Leadership Award 2015’ by Agriculture Today Group.

Since its inception, Punjab National Bank has undergone many changes in terms of structure as well as functioning. The predominant contributing factors in the success of this mammoth organization have been the numerous acquisitions and amalgamations that are prevalent in the bank’s rich history. Punjab National Bank enjoys a strong national presence including 5 offshore divisions in Asia, Africa, and Australia.

The Punjab national bank offers a wide variety of financial and banking services to its customers. Apart from its banking products like NRI banking, MSME, corporate, and personal services, Punjab National Bank is also a major presence in the rural and agriculture banking sectors. One of the largest employers in the banking industry in India, Punjab National Bank employs over 64000 people, offering various services like credit cards, Punjab National Bank car loans and others, mutual funds, cash management services, wealth management, investment banking, etc.

Punjab National Bank Car Loans

One of the most popular loan offerings of the bank is the Punjab National Bank car loan. Under these car finance plans, Punjab National Bank extends its financing services for the purchase of four wheelers. This includes the Punjab National Bank car loan for a new car and for the pre-owned car loan. The car finance plans from Punjab National Bank cover an extensive range of four wheelers including foreign and indigenous make Sports Utility Vehicles (SUVs), Multi Utility Vehicles (MUVs), Jeeps, Vans, and Cars. The used car loan is available to finance pre-owned cars that are no older than 3 years from the date of their RTO registration.

The car loan application for Punjab National Bank car loans is accepted from salaried and self-employed individuals, as well as firms and business concerns, as long as they have a minimum annual income of Rs. 200000. The primary applicant also has the option to club the income of their parent or spouse, to increase their car loan amount eligibility. Punjab National Bank offers one of the best car loans in India, where the car loan disbursals can go up to 25 times the applicant’s net monthly salary or Rs. 25 lakhs (whichever is lower). For business concerns and firms, there is no applicable upper limit to their car loan amount eligibility. Car loans offered by Punjab National Bank have a maximum repayment period of 84 months for new cars and 60 months for a used car loan. The bank also routinely offers promotional and festive deals on car loans.

Features of PNB Car Loan

  • Punjab National Bank Car Loan can be availed to purchase new and old car/van/jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV).
  • Repayment period for new vehicle is 84 months and for old vehicle is 60 months
  • No prepayment charges in case of floating interest rate. For fixed interest rate loans prepayment charges @2% on the outstanding pre-paid is charged
  • Quantum of finance for individuals and proprietorship concerns is Rs. 100 lac or 25 times of Net Monthly Salary / Pension/ Income, whichever is lower. For Business Concerns (Corporate or Non-Corporate) there is no ceiling amount (for one or more vehicles).
  • Income Eligibility: Self-employed and salaried individuals and business firms that draw a minimum monthly income of Rs. 20000 are eligible for a Punjab National Bank car loan. The option to add an immediate family member to the car loan application acts as an incentive in case the monthly income of the primary applicant does not satisfy the income requirements for Punjab National Bank car loan.
  • The Principle Amount: For a car loan from Punjab National Bank, individuals can apply for principle amounts up to Rs. 25 lakhs or 25 times their net monthly income, whichever amount happens to be lower. Business firms have no maximum loan amount limit, and in both cases the loan can be used to finance on or more vehicles.
  • Funding: For new cars, the Punjab National Bank car loan funds up to 85 % of the ex-showroom price of the car. For used cars the funding can be availed for up to 70 % and up to 90 % under the tie up arrangement.
  • Security: Cars that are bought with the Punjab National Bank car loan have to be jointly registered in the name of the borrower and the bank. This implies that until the time the borrower pays off the loan, the vehicle will remain hypothecated to Punjab National Bank. After the repayment of the loan, the borrower can become the sole owner of the vehicle. In certain cases however, PNB may require a collateral or a third party guarantor to indemnify the loan. This clause is relaxed for employees of some listed categories of companies including MNCs, PSUs, state or central government, etc. This is also relaxed for salaried individuals, if the ex-showroom cost of the car exceeds Rs. 6 lakhs.
  • Car loan interest rates: The calculation of the Punjab National Bank car loan interest rates is based on the common concept of the base rate system. This rate consists of a variable and a fixed component, where the variable component is known as the base rate and is applicable on all lending products of the bank.

Punjab National Bank Car Loan Eligibility

As long as an applicant’s documents are in order and their application fulfills the required eligibility for Punjab National Bank car loan, the bank is known to quickly disburse car loans. The bank maintains a strict checklist for the processing of the car loans. The Punjab National Bank car loan eligibility criteria can differ from applicant to applicant, and might not be the same in every case. Based on the qualifications, the bank may even offer a loan on lower terms.

  • Punjab National Bank Car Loan can be availed for cars for private use only
  • The eligible applicants are: individuals and business concerns (corporate or non-corporate)
  • The loan applicant must have minimum net monthly salary or pension or income of Rs.20000/-
  • Income of parent(s) or spouse or earning children can be added for determining the income eligibility. However, out of above income of only one person can be included and that person will be a co-borrower in the loan contract
  • The applicant must be at least 21 years of age at the time of application.
  • The applicant should not be more than 60 years of age
  • The applicant should have a good credit score and should not have default history
  • The applicant should be able to provide a collateral if deemed necessary by the bank.

The Punjab National Bank car loan application is evaluated by an in-house system that designates a score to each application. The bank makes a final decision on your application based on how close your score is to the benchmark score. Before applying for the Punjab National Bank car loan, ensure that the status of your exiting debts is clean as the bank may approach the credit bureau for your detailed credit history.

Check your Car Loan Eligibility

There are a lot of factors involved in availing car loan from Punjab National Bank. Owing to the strict eligibility checklist provided by the bank, applicants should ensure that they meet the criteria set forth for a car loan from Punjab National Bank. By using a simple car loan eligibility calculator, applicants can check whether they meet the eligibility for a car loan provided by Punjab National Bank, and they can also check to see where they are lacking in order to improve their application before applying for the car loan.

Make sure you satisfy the Punjab National Bank car loan eligibility criteria before applying for a car loan by just clicking on Check Your Car Loan Eligibility at PaisaBazaar.

How it works

  • Step 1: Select whether you are looking for a new or used car
  • Step 2: Select or enter your city of residence in the second section
  • Step 3: In the third section, you need to select or enter the make of the car that you want to buy with a Punjab National Bank car loan. The next step is to select the model of the car (in some cases, you might also have to select the variant of the model) in the new section that appears
  • Step 4: Enter details about your timeline for buying the car
  • Step 5: For the next section you need to enter the amount of money that you wish to take as a Punjab National Bank car loan
  • Step 6: Select the loan tenure that is most comfortable for you for repaying the car loan
  • Step 7: You next need to select your form of employment (salaried or self-employed). Afterwards, for salaried individuals, the name of their employers needs to be entered, while self-employed professionals or businessmen have to select their profession
  • Step 8: Next, enter your gross annual income
  • Step 9: Enter the amount that you are already paying as EMI
  • Step 10: Select the bank that you have your bank account with
  • Step 11: Finally, you need to enter all your personal details like name, gender, date of birth, email id, mobile number, etc. and click on ‘View all Offers’ to see the loans that you are eligible for.

PNB car loan Interest Rates

Floating type interest rate for:

  • Individuals or corporate: Up to 7 years is BR+0.25%
  • Women borrowers: Up to 7 years is BR+0.15%
  • Others: Less than 3 years- BR+0.50%
  • 3 years & above-BR+0.50%


Fixed type interest rate: Up to 7 years is BR + 0.40%

Punjab National Bank other charges

  • Processing fee for Punjab National Bank car loan: 1 % of the principle amount, maximum amount of Rs. 6000
  • Prepayment Charges: NIL


Other Punjab National Bank car loan details

  • Tenure for repayment
    • For new car loan: up to 84 months or 7 years
    • For used car loan: up to 60 months or 5 years
  • Maximum loan amount: Rs. 25 lakhs
  • Guarantor required: At the bank’s discretion

Documents for Punjab National Bank car loan

Whether you are a Punjab National Bank account holder or not, there are certain documents for Punjab National Bank car loan that need to be submitted before you can avail a car loan:

  • Signed Punjab National Bank car loan application form with attached photograph
  • Photo ID
  • Age proof
  • Proof of residence
  • Bank statement for the last 6 months


Documentation for salaried individuals

  • Salary slips for the last three months
  • Form 16
  • Income Tax Returns


Documentation for self-employed individuals

  • Income Tax Returns with computation of Income for the last 3 years
  • CA Certified / Audited Balance Sheet and Profit & Loss Account for the last 3 years


Things to remember before you apply for a PNB car loan

A financial commitment for years to come, it needs due consideration before an applicant decides to apply for a car loan online. Even in the case of pre-approved car loans, it is always better to ensure that the applicant is well aware of all the aspects of the particular plan. The aspects that go into the entire loan application process are both well-known as well as not so well-known factors. These include

  • Prepayment Charges
  • Interest Rate
  • Processing Fees
  • Tenure
  • Down Payment
  • Car loan EMI


A few tips that will not go amiss while you apply for a Punjab National Bank car loan:

About the EMI
If you feel that an EMI option is very reasonable and affordable, do not forget to look at the bigger picture. A smaller Punjab National Bank car loan EMI would imply a longer tenure, which in turn will result in more interest to be paid. So consider all the relevant factors that paint the bigger picture, and not just the EMI amount.

Pay the down payment
There are not many feelings that are better than getting to drive home a new car without having to immediately pay for it. As great as it might sound, it is not the smartest decision. The down payment will simply get added to your principle loan amount, resulting in more interest, more EMIs, or higher EMIs. The down payment is not “waived off”, it is just added to the amount that you borrow, increasing your liabilities.

Logic and emotion
Before buying a car, the first thing people do is budget the decision and set a limit to the amount that they are willing to spend. This plan is made with a level head, considering all the implications and results of the decision. What you need to do, is remember this very fact for when you get to the car dealers. Sales talks are designed to convince you to spend more, but remember that what sounds like a reasonable addition to your monthly car loan payments right now, will probably start seeming like a burden further down the line. So remember, do not let your emotions rule your decision.

The Shorter Term
A long tenure for repayment of a car loan will of course have lower EMI amounts, but it also means more interest that is paid. So whenever you apply for a Punjab National Bank car loan, remember that, and try to select the shortest possible term, keeping in mind your financial capabilities.

The car loan EMI

The car loan EMI or the equated monthly installment is not the end all factor that should be influencing your decision of availing a Punjab National Bank car loan online, but it still remains one of the most important things that need to be considered. The attractive Punjab National Bank car loan interest rates do play a role in the decision making process, but it is the car loan EMI that will be staying with you throughout the loan tenure. The EMI is the amount that month after month the borrower will be paying to repay the loan that has been availed. It is of course of prime import that an aspiring borrower should know all they can about the EMI. One of the facts that not many people are aware of is that the amount that is paid back as EMI has two components, namely the principle amount being paid back and the applicable interest. The ratio of these two components in the EMI keeps varying throughout the loan term, as the ratio of the interest being paid is much more than the ratio of the principle amount in the beginning of the loan term. The interest component of the EMIs keeps reducing as time passes. An EMI is calculated on the basis of the various features of the car loan that has been taken. These include the car loan interest rates, the loan amount that has been availed, and the tenure for the car loan. Once an individual knows these, they can calculate EMI for Punjab National Bank car loans by themselves by using the following formula:

EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]

In the above formula,

P = Principal loan amount
R = Car loan interest rates offered
N = Loan tenure, in months (or the number of installments applicable)

But as you can see, the formula mentioned is rather complex and would make your task of calculating the EMI tedious and time consuming. An easier way to find out the applicable EMI for a particular loan option would be to use a car loan EMI calculator. At PaisaBazaar, you can use the simple Punjab National Bank car loan EMI calculator to enter the required information for a quick and easy calculation of the EMI that you will be liable to pay. This way, you will also be able to see whether the loan option that you wish to apply for is right for you or not. If in case the EMI does not seem feasible to you, you can use the car loan EMI calculator to devise a loan option that would suit your needs and requirements.

Using the Punjab National Bank car loan EMI calculator

To use the car loan EMI calculator, you need to provide the three basic details about your car loan. These are the loan amount, the car loan interest rates, and the loan tenure for a simple calculation of your equated monthly installments. Make sure that before you apply for a Punjab National Bank car loan, you are well informed about the EMI that you will have to pay for that particular loan. The steps for using this calculator are listed below:

Step 1:
Enter the principal amount that you require while applying for the Punjab National Bank car loan.

Step 2:
In the section right below the first, enter the interest rates that have been offered to you for the Punjab National Bank car loan.

Step 3:
In the third part, enter the loan tenure that you would like opt for making the repayments. The loan tenure with Punjab National Bank can vary from 1 year to 7 years for a new car, and 1 year to 5 years for a used car, as long as it is no older than 3 years.

Navigate using the sliders in the various sections, or use the given box to enter the relevant values.As you enter the required details, on the right side of the calculator, the amount that will be payable as EMI for the Punjab National Bank car loan will be visible. Another useful feature of using the EMI calculator is that you can change any or all the values in the three sections, for a different loan option and view the changed EMI immediately, without delay.

Why choose a Punjab National Bank car loan?

A car loan provided by Punjab National Bank offers some of the lowest car loan interest rates, following a system of the base rate (which is variable) + fixed component, to determine the applicable Punjab National Bank car loan interest rate. This rate is based on the principle of reducing balance. The bank’s tenure for a car loan can extend up to 84 months for repayment. The applicable processing fee for Punjab National Bank car loan, generally applicable at 1 % of the principle loan amount, is even waived off during seasonal offers. The monthly income eligibility for Punjab National Bank car loan is set at a low amount of Rs. 20000, for which an applicant can choose an immediate family member as a co-applicant to increase the monthly intake and qualify for the Punjab National Bank car loans.

How to apply for a Punjab National Bank car loan

There are a number of channels that one can go through for applying for the Punjab National Bank car loan. These Punjab National Bank plans are designed to offer the customers a smooth and hassle free application process.

  • Individuals can directly visit a bank branch to and begin applying for the Punjab National Bank car loan.
  • Individuals can also avail the Punjab National Bank car loan online at the bank’s official website.
  • Another way to apply for a Punjab National Bank car loan online is through the PaisaBazaar.com portal where you can compare various options and choose the one that suits you best.

Bank Car Loan FAQs

1. How old can be the second hand car for which PNB Car Loan can be availed?
A. The age of the second hand car should not be more than 3 years.

2. What is maximum tenure for repayment?
A. In case of new car the maximum repayment period is 84 months and in case of old cars it is 60 months.

3. How much processing charges I need to pay for the car loan?
A. The processing charges have been presently waived off till 31-03-2016 under the festival bonanza. Otherwise 1% subject to maximum of Rs.6000/- exclusive of service tax is payable as a processing charge for a car loan.

4. How much loan amount can be sanctioned under Car Loan Scheme?
A. For individuals the loan amount is 25 times the net monthly salary/income subject to a maximum of Rs. 25 lac. In case of business concerns, loans that are sanctioned are need based.

5. Who all are eligible for a PNB Car Loan?
A. PNB Car Loan can be availed for private use only by individuals and business concerns (corporate or non-corporate).