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PNB Car Loan Interest Rates

Punjab National Bank offers car loans to customers at a minimal interest rate starting from 7.35% with a repayment tenure of 1 year to 7 years. The PNB car loan interest rate depends on various factors such as loan amount, repayment tenure, old or new car, and credit score.

Features of PNB Car Laon 2022

Interest Rate7.35% p.a.
The minimum loan amount availableRs. 2,00,000
The maximum loan amount available85% of the on-road amount and 100% of the ex-showroom price
Tenure1-7 years
Lowest EMI/ LacRs 1596
Minimum Monthly Income requiredRs.20,000
Minimum ITR for self-employedRs. 3,00,000
AgeSalaried people: 21 yrs to 60 yrs Self-employed: 21 yrs to 65 yrs
Types of carsFor All New Passenger Cars, Multi Utility Vehicles (MUVs), and Sport Utility Vehicle (SUVs).
PNB car loan processing feesUp to 0.40% of the loan amount
Foreclosure feesNIL
Documents requiredID Proof, Address Proof, Salary Slip, Bank Statement, and Car Quotation

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PNB car loan interest rate, fees, and charges

ChargesNew Car LoanUsed Car Laon
PNB Car Loan Interest rate7.35% pa.From 7.50% p.a.
Processing fees0.40%0.40%
Issuance of Repayment Schedule ChargesRs.500 per instanceRs.500 per instance
Foreclosure ChargesNILNIL
Penal Interest2% per month2% per month
Part Payment Charges2% of the Paid amount2% of the Paid amount
Cheque/Payment Swab ChargesNILNIL
Documentation chargesRs. 1500 per instanceRs. 1500 per instance
Issuance of Duplicate No Dues certificate chargesNilNil
Registration certification collection chargesNILNIL
Cheque Bounce/ Instrument return chargesRs. 150+ GSTRs. 150+ GST
Issuance of Duplicate Statement ChargesNILNIL
Loan Cancellation/ Re-Booking ChargesNILNIL
Issuance of Credit ReportRs.50 per instanceRs.50 per instance

Factors Affecting PBN Car loan rates and eligibility

There are various factors responsible for deciding the PNB car loan interest rates and eligibility:

  1. Applicant’s Income: If you have a high income, PNB car loan interest rates will be less as you can pay back the loan at costly EMIs. Similarly, with a higher income, you will get the loan quickly. High income indicates a higher repayment capacity. To be eligible for a PNB car loan, your income should be a minimum of Rs.3 lacs.
  2. Loan Amount: PNB car loan interest rates are lower when you apply for a lower loan amount because the interest rate is calculated on the total loan amount. Similarly, If you apply for a lower loan amount, the chances of approval increase. As bank knows that lower loan amounts can be paid off quickly. They will become more confident to give you a PNB car loan.
  3. Repayment Tenure: Choose the shorter repayment tenure to reduce the PNB car loan interest rates. Interest rates also depend on the tenure you apply for. Also, If you choose a longer repayment tenure, it reduces the chances of approval. It gives the impression that you don’t have enough sources to pay back the loan.
  4. Credit Score: A good credit score will help you get the PNB car loan interest rates. A CIBIL of 750 or above is considered a good credit score. If you have maintained a good credit score, the bank will approve your loan quickly.
  5. Relationship with Bank: PNB bank offers instant car loans to their existing customers at their convenience with minimum documents because the bank knows them already. Bank will also give some relaxation in PNB car loan interest rates to such customers.

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Documents required for PNB car loan

The documents required for a PNB car loan are listed below in the table

DocumentsSalaried individualSelf-employed individualPartnership firmsPrivate Limited
Identity Proof (Any1)Driving LicenseAadhar cardPassportPAN CardVoter IDDriving LicenseAadhar cardPassportPAN CardVoter IDDriving LicenseAadhar cardPassportPAN CardVoter IDCopy of latest MOA Copy of incorporation Copy of latest AOA
Address proof (Any 1)Driving LicenseAadhar cardPassportPAN CardVoter IDDriving LicenseAadhar cardPassportPAN CardVoter IDDriving LicenseAadhar cardPassportPAN CardVoter IDcurrent Account Statement Telephone Bill Electricity Bill Shop & Establishment Act Certificate SSI or MSME Registration Certificate Sales Tax or VAT Certificate Registered Lease Document with other utility bills
DOB (Any 1)Driving LicensePassportPAN CardBirth CertificateDriving LicensePassportPAN CardBirth Certificate——–
Signature proofPassportBankers verificationPANPassportBankers verificationPAN—-——
Income proofLatest form 16 and salary slipLatest form 16 and salary slipAudit Balance Sheet P&L account previous 2 years ITRAudit Balance Sheet P&L account previous 2 years ITR
Bank statementLast 3 monthsLast 3 monthsLast 3 monthsLast 3 months
Employment/ Business continuity ProofWork experience certificateForm 16 for ITRSalary slip with joining dateAppointment letterLetter of relievingShop & Establishment Act CertificateCurrent Account StatementSSI or MSME Registration certificateSales Tax or VAT certificateCertificate for Shop & Establishment ActCurrent Account StatementSSI or MSME Registration certificateSales Tax or VAT certificateCertificate for Shop & Establishment Act Current Account StatementSSI or MSME Registration certificateVAT certificate
Additional documents—-—–Authority Letter? PAN CardsList of Directors and Shareholding Partners PAN Card Board Resolution Certificate of Commencement of Business for Ltd. Co.

Eligibility criteria for PBN Car loan Rates

PNB has set some criteria the candidate must fulfill before applying for the pnb car loan. So, if you are also willing to apply for pnb car loan, check the eligibility criteria mentioned below:

  • Eligibility criteria for Salaried person

Age: Age should be 21 years to 60 years

Monthly Income: minimum Rs 20,000

Employment duration: Minimum 1 year

Income eligibility: Depends on form 16 and pay slip

  • For a self-employed person

Age: 21 years to 65 years

Minimum ITR– Rs. 4 lacs to Rs.18 lacs

Employment duration– Minimum 3 years

Income eligibility: Depends on the latest ITR

  • For Self employed Non- Individuals (Companies/partnerships)

Minimum ITR– Rs 4 lacs, Rs 18 Lacs

Employment duration: Minimum 3 years

The applicant has to present ITR and Audit financials for the last 2 years with calculated income

  • Priority customers

Vintage of at least 6 months

Average Quarterly Balance: Minimum Rs.1 lac for last 2 quarters

Minimum Loan Amount: 3x avg quarterly balance

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PNB car loan Rates and Charges

FeaturesNew car loanUsed car loan
Processing Fee1.00% Min Rs. 5000 Max Rs. 10,0002.00% Min Rs. 5000
Loan Tenure1-7 years1-7 years
Lowest EMIRs.1,556 per lacRs. 1,556 per lac
Loan AmountUp to 100% of Ex-showroom priceUp to 100% of market value
Prepayment Charges5% from 13-24 months, 3% after 24 monthsNot allowed for 6 months, 6% fee from 7-12 months, 5% from 13-24 months, 3% after 24 months

PNB car loan interest rate pre-calculated EMI

Here are some pre-calculated EMI according to PNB car interest loan rates. It will give you a rough idea of how much EMI you have to pay for a particular loan amount and tenure.

Loan Amount2 years3 years5 years7 years
1 LacRs.4,480Rs. 3,090Rs. 1,982Rs. 1,512
3 LacsRs. 13,439Rs. 9,270Rs.5,947Rs. 4,535
5 LacsRs. 22,398Rs. 15,450Rs. 9,912Rs. 7,559
10 LacsRs. 44,795Rs. 30,900Rs. 19,825Rs. 15,117

Tips to Decide the right amount of EMI according to PNB car loan interest rate

Before applying for a PNB car loan, you must be clear about how much EMI you can pay without getting into stress. The following tips will help you determine the amount of EMI you must set for your PNB car loan interest rates.

  • Ascertain the amount you need to borrow: Before approaching PNB for a car loan, you must inform them about the loan amount you need. Limit your loan amount according to your other expenses and funds.
  • Review your current obligations: Before applying for a loan, you must check your expenses or any EMI obligation on a current loan. It will help you determine the EMI amount you can pay comfortably without disturbing the already existing obligations.
  • Calculate your PNB car loan eligibility: The PNB car loan eligibility is an assessment of your repayment capacity. Bank provides LTV up to 100% of the ex-showroom price and expects the borrower to fund the remaining value on their own.
  • Multiplier-based loan amount eligibility: PNB calculates your eligibility by applying a multiplier on your in-hand salary. It makes the eligibility calculation easy.
  • FOIR-based loan amount eligibility: PNB estimates your FOIR (Fixed income to obligation ratio) to determine the maximum EMI you can pay. So, it’s better to keep lesser obligations.

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Frequently Asked Questions

Q1. How much processing fees are applicable on a PNB car loan?

Ans: PNB charges 0.40% of the loan amount as the processing fees.

Q2. How to pay PNB car loan interest rates online?

Ans: PNB accepts payments through net banking for pnb car loan interest rates.

Q3. What are the types of cars for which PNB is offering loans?

Ans: PNB offers various types of cars on loans, such as Sedans, hatchbacks, jeeps, vans, SUVs, and MUVs.

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