Punjab National Bank Car Loan

Own your dream car with Punjab National Bank as it offers funds whether you a Salaried employee, a Self-Employed Professional or a Self-Employed Businessman. You can avail funds as high as 85% of on-road price of the car. The Annual Interest Rate charged by the bank is ranging from 8.75% to up to maximum of 9.20% per annum.


Punjab National Bank is a good fit for you if?

If Your minimum net annual income is Rs. 2.40 Lakhs – Punjab National bank could be a good fit for you for availing Car loans. Whether you are a Salaried Employee, a Self-Employed professional or a Self-Employed Businessman, your minimum net annual income must be Rs. 2.40 Lacs. So buy your dream car with Punjab National Bank and make your dream come true of owning your personal Car.

Punjab National Bank Car Loan at a glance

Annual Interest Rate

8.75% to 9.20%

Loan Term

12 months - 84 months

Loan Amount

Up to Rs. 1.20 Crore

85% of on-road price of car

Time of Funding

Within 7 working days

Pre-Payment Charges

Nil

Punjab National Bank offers you funds as high as up to Rs. 1 Crore subject to maximum 85% of on-road price of car, so now you can buy your dream car by availing loan from Punjab National Bank. As per current interest rates, Punjab National Bank car loan interest rates are ranging from 8.25% to up to maximum of 9.20% per annum and the tenure to repay your loan is 12 months to as long as 84 months. There are no pre-payment charges charged by Punjab National Bank on Car Loans.

Why Choose Punjab National Bank?

No Pre-Payment charges – You can now easily avail loan from Punjab National Bank as this bank does not charge any prepayment fee as compared to other banks or financial institutions which charges a high amount such as Kotak Mahindra Bank which charges up to 5.21% of the amount prepaid which is allowed after 6 months of availing loan.

What to watch out for?

High Income Criteria – if you are wishing of availing your car loan from Punjab National Bank then you must know the income criteria of this bank as your minimum net annual income must be Rs. 2.40 Lacs which is quite a high amount.

Compare Punjab National Bank Car Loans to Other Banks

Bank Name Punjab National Bank SBI ICICI Bank

Typical APR

8.75% to 9.20%

9.20% - 9.70% 9.75%

Loan Term

Maximum 84 months

Maximum 84 months Maximum 84 months

Maximum Lending Amount

Rs. 1.20 Crores

Rs. 1.20 Crores Rs. 50 Lacs

Processing Fee

Rs. 1,000 to Rs. 1,500

Rs. 1,000 to Rs. 1,500

2% of the loan amount

Max Rs. 15,000.

Time to Funding

Within 7 working days

Within 5 working days Within 7 working days

Pre-Closure

Nil

Nil 2.6% to 4.3% of the outstanding loan amount

Punjab National Bank offers you funds as high as Rs. 1 Crore while State Bank of India offers loans as high as Rs. 1.25 Crores and ICICI Bank, which can lend up to maximum of Rs. 50 Lacs. So if you want higher amount of funds, you can apply from State Bank of India and PNB Car loan both are good choice for you. The Processing Fee charged by Punjab National Bank is Rs. 1,000 for applicants who are availing loans up to Rs. 6 Lacs and Rs. 1,500 for applicants who are availing loans above Rs. 6 Lacs, while ICICI Bank charged a processing fee of 2% of the loan amount or maximum Rs. 15,000 and in case of State Bank of India, it charges a processing fee of Rs. 1,000 for applicants who are availing loans up to Rs. 6 Lacs and Rs. 1,500 for applicants who are availing loans above Rs. 6 Lacs.

As per the latest APR, Punjab Bank car loans interest rates are ranging from 8.75% to up to maximum of 9.20% per annum while in case of State Bank of india, the typical APR is ranging from 9.20% to up to maximum of 9.70% per annum, and in case of ICICI Bank, it's 9.75% per annum. So, according to these three banks, HDFC Bank charges a high interest rate on car loans and Punjab National Bank offers lower interest rates. Now, coming to the loan tenure, if you are availing loan from Punjab National Bank you have to repay your loan within maximum of 84 months (7 Years) while if you are availing loan from ICICI Bank you have to repay your loan within maximum of 84 months (7 Years) and in case of State Bank of India, you can repay your loan as long as 84 months (7 Years). So if you want longer tenure to repay your loan, then you can apply your loan from State bank of India or Punjab National Bank. There is no pre-closure charges charged by Punjab National Bank while in case of ICICI Bank it charges a pre-closure fee of 2.6% to up to 4.3% of the outstanding loan amount and the pre-closure charges in State Bank of India are Nil. So in case of Pre-closure fee, ICICI Bank offers a high amount as compare to these two banks which does not charge any Pre-Closure fee.

Am I Eligible?

  • Salaried or Self-Employed applicants with regular income.
  • Age of the applicant should not be less than 21 years at the time of the loan application.
  • Age of the applicant should not be more than 60 years at the time of the loan application.
  • Minimum monthly income of the applicant should be Rs. 20,000 per month

Loan Offerings

Punjab National Bank Pride Car Loan (Car Loan for Government Employees)

  • Under this Scheme, Punjab National Bank offers loan for purchasing car to permanent employees of government entity including Defence Personnel and Paramilitary forces. To avail this loan, the income of the applicant must be Rs. 20,000 per month including the income of parents, spouse earning children can be added for determining loan amount eligibility. The quantum of finance is Rs. 1 Crore or 25 times of Net Monthly salary, whichever is lower. Loans for higher amount may be considered on merits of the case. For new car vehicles, Punjab National Bank has set a margin of 15% of on-road prices inclusive of one time road tax and insurance and 10% of on-road price for car where Punjab National Bank has tied up arrangement with manufacturers / dealers such as Maruti Suzuki India Ltd, Tata Motors Ltd, Mahindra and mahindra Ltd, Honda cars India Ltd, Force Motors Ltd etc.The interest rate charged by the bank is 8.75% to up to 9.20% per annum and the processing fee charged by the bank is Rs. 1,000 to up to Rs. 1,500. You can repay your loan amount within a tenure of as long as 7 years which is quite a long tenure to easily pay your funds.
  • In this scheme bank provides you a lot more benefits such as neither they charge any processing fee nor documentation charges. No need of wasting your time on finding a guarantor or collateral security as in this scheme since there is no requirement of a guarantor or collateral security.

Punjab National Bank Car Loan (Car Loan for Public)

  • Under this scheme, Punjab National Bank offers loan for purchasing of car by proposed car buyer on attractive terms for non-government applicants who want to apply for car loans. To avail this loan, the minimum net monthly salary / pension / income of the non government applicant must be Rs. 20,000 per month and the income of parents, spouse earning children can be added for determining loan amount eligibility. The quantum of finance is Rs. 1 Crore or 25 times of Net Monthly salary, whichever is lower. Loans for higher amount may be considered on merits of the case.The interest rate charged by the bank is 8.75% to up to 9.20% per annum and the processing fee charged by the bank is Rs. 1,000 to up to Rs. 1,500. You can repay your loan amount within a tenure of as long as 7 years which is quite a long tenure to easily pay your funds. For new car vehicles, Punjab National Bank has set a margin of 15% of on-road prices inclusive of one time road tax and insurance and 10% of on-road price for car where Punjab National Bank has tied up arrangement with manufacturers / dealers such as Maruti Suzuki India Ltd, Tata Motors Ltd, Mahindra and mahindra Ltd, Honda cars India Ltd, Force Motors Ltd etc.
  • Documents required for Salaried applicants:
    • Signed application form along with KYC Documents
    • Last 3 months pay slip
    • 2 passport size photographs signed by the customer
    • R.C of vehicle and insurance of Car
    • Bank statement of last 3 months
    • Form number 16 or Income tax returns
  • Documents required for Self-Employed applicants:
    • 2 passport size photographs along with KYC Documents
    • Signature Proof
    • Last 3 years income tax returns
    • Profit and loss account of last 3 years certified by chartered accountant.
    • Audited balance sheet of last 3 years certified by chartered accountant

Punjab National Bank Car Loan Rate of Interest

Personal Loan Type Applicable Interest Rate

Punjab National Bank New Car Loan

8.75% to 9.20% per annum

Punjab National Bank New Car Loan for Women

9.30% per annum

Punjab National Bank New Car Loan for Individuals and Corporates

9.30% per annum

Punjab National Bank New Car Loan for other categories

9.65% per annum

Punjab National Bank offers loan to different sections of applicants such as for Punjab National Bank new car loans, for women applicants, for individuals and corporates and to other categories. The applicable interest rate charged by Punjab National Bank on Car Loans is 8.75% to up to maximum of 9.20% per annum and the floating rates for women applicants is 9.30%, for individuals and corporates it is 9.30%, and in case of other categories, the floating rates are ranging from 9.65%.

How do I apply for Punjab National Bank Car Loan?

At Paisa

    • Click on ''APPLY NOW'' button
    • Fill the necessary details such as
      • Desired Loan Amount
      • Purpose of your loan
      • Your monthly salary
      • Select whether you are salaried or self-employed
      • Your name, email-id, contact no etc.
    • Click on ''SUBMIT''

At Punjab National Bank Branch

    • Walkin to the nearest branch of Punjab National Bank along with your KYC documents. Click here to download the application form of Punjab National Bank Car Loan.
    • Fill in the required details and attach your important documents.
    • Now, you can submit this application from at any of your nearest branch of Punjab National Bank

After I Apply?

Check Loan Status

  • Through PNB Customer Care
    • Dial 1800-209-5732 from your registered phone number.
    • Press 1 for English or press 2 for Hindi
    • Customers from North or east of India press 1, Customers from south of India press 2, and Customers from west of India, Press 3
    • Now, please wait for IVR to connects your call to the customer care executive.

Fees & Penalties

Type of Charge Applicable Charges

Processing Charges

Rs. 1,000

For Loans Up to Rs. 6 Lacs


Rs. 1,500

For Loans Above Rs. 6 Lacs

Foreclosure Charges

NIL

Penal Interest

2% per month on the overdue amount

Starting from the Processing fee, Punjab National Bank charges a fee of Rs. 1,000 to the applicants who are availing loans up to Rs. 6 Lacs and Rs. 1,500 for the applicants who are availing loans above Rs. 6 Lacs. Punjab National Bank does not charge any foreclosure charges for car loans as compared to other competing banks or financial institutions which charges a high amount of fee such as Kotak Mahindra Bank which charges 5.21% of the loan amount as a foreclosure fee and in case of Axis Bank, 5% of the principal outstanding amount after 180 days from the date of disbursement and in ICICI Bank it charges 2.6% to up to 4.3% of the outstanding amount and charges a late payment penalty of 2% above the normal rate of interest.

FAQs

Can you tell me the validity of typing up with car manufacturers at all India level?

Click here to go through the validity of tying up with car manufacturers at all india level.

Is it required to have a Collateral security or a third party guarantor for availing loan from Punjab National bank?

Yes, a Collateral security or a third party guarantor is required to avail loan from Punjab national Bank.