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PNB Car Loan Interest Rate

Last Updated 18th Oct 2017

PNB Car Loan Calculator India Oct 2017

Features and Eligibility New Car Loan PNB Used Car Loan PNB
Interest Rates 8.50% Floating
Check Best Offers
11.20% Floating
Processing Fee 1.00% Max Rs. 6,000 1.00% Min Rs. 0 Max Rs. 6,000
Maximum Loan Tenure 7 years 5 years
Lowest EMI per Rs. One Lakh Loan Amount Rs. 1,584 Rs. 2,052
Maximum Loan Amount Eligibility 85% of on-road price 70% of market value
Prepayment Charges Nil Nil
Interest Calculation Monthly reducing balance Monthly reducing balance
Age Between 21 years and 65 years Between 21 years and 65 years
Apply Car Loan @ 9.25%*

PNB Car Loan

PNB gives car loan to borrowers who need funds to buy a new car. Benefits of taking vehicle loan from PNB are:

  • Attractive interest rates
  • Nil prepayment charges
  • Flexible repayment options

PNB Vehicle Loan Interest Rates

Car Loan interest rate depends upon

  • Loan amount: Generally banks offer lower interest rates for higher amount. PNB offers 85% of on-road price price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. PNB interest rate varies with your net monthly income.
  • Employer Category: Employer category of the borrower is a major deciding factor in order to determine his/her rate of interest. PNB has a list of company categories of salaried individuals to which they avail vehicle loan. So, higher company category leads to low rate of interest.
  • Relationship with the Bank: PNB offers special rates, offers and charges to the existing account holders of the bank. Those who have managed their accounts and made all the payments on time in past will get benefit of low vehicle loan interest rate.
  • Loan Tenure: PNB vehicle loans are of longer repayment tenure of 7 years.
  • Repayment Capacity: Before giving loan to the borrower, PNB checks the repayment capacity of the borrower. Bank verifies the repayment capacity of the customer through CIBIL as it has all the details of previous loans taken and their repayments. CIBIL also gives the information of credit card bills payment.

PNB Car Loan Eligibility

The following table depicts the various eligibility criteria for availing a car loan.

Age 21 years - 65 years
Minimum Annual Income Salaried: Rs. 2.40 Lakhs
Self Employed Professionals: Rs. 2.40 Lakhs
Self Employed Businessmen: Rs. 2.40 Lakhs
Minimum Credit Score 700 and above
Loan Tenure 7 years
Loan to Value Ratio 85% of on-road price

Eligibility of car loan relies upon different factors but the most important factor is your ability to repay the loan. The main factors on which the eligibility of an applicant depends are:

Age: Age plays an important role to know your eligibility and repayment capacity. PNB offers car loan to those who are atleast 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.

Income: PNB car loan calculator calculates your eligibility based upon your income. Usually bank set minimum levels of income to apply for car loan. PNB asks for net annual income of minimum Rs. 2.40 lakhs.

Job stability and Profession: Job stability is important to improve your status and eligibility for vehicle loan from PNB. If you are working with a reputed company, probability of getting car loan increases as the income is considered to be more stable and bank offers low interest vehicle loan to the employees of reputed companies.

CIBIL Score: Your past CIBIL history and repayment record of existing loans and credit cards has a direct impact on your PNB car loan eligibility. If you have a poor repayment record, then you may not get the loan but on the other side, a regular repayment record increases your vehicle loan eligibility. Generally, Bank give loan at a CIBIL score of 700 and above.

Loan Amount: PNB gives you vehicle loan depending upon your income. PNB gives 85% of on-road price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service.

PNB Car Loan EMI Calculator

Car Loan EMI of PNB is a fixed amount that you pay each month towards the repayment of your car loan till the end of tenure. Lowest EMI offered by PNB is Rs. 1,584 per lakh loan amount at lowest vehicle loan interest rate of 9.25%. Car Loan EMI of PNB depends on factors like:

  • Rate of interest is an important factor which affects your EMI. Higher the interest rate, higher will be the EMI.
  • Loan tenure matters equally as longer tenure reduces your monthly EMI per lakh.
  • Your EMI depends upon the amount of loan you are going to borrow. Loan EMI will be high if you apply for a high loan amount.

Features of vehicle loan EMI

  • Car loan EMI calculation varies from bank to bank depending upon the method of calculation.
  • The standard convention should be to use the EMI in arrears method on reducing balance basis – whereby you pay interest on the loan amount outstanding on a reducing basis at or after the end of the month.
  • Simply key in the loan amount, rate of interest and vehicle loan tenure here and check the EMI amount using the vehicle loan EMI calculator here. In case the EMI amount displayed is different from the one advised to you by the agent, you must check the calculation basis with your vehicle loan agent.


You can calculate the monthly payment (EMI) yourself using the following equation

E= P. r. (1+r)n/[(1+r) n -1]


  • P represents the principal amount that you want to apply for.
  • r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
  • n is the tenure of loan in months
  • E represents the monthly payment or EMI

Let’s say you take out a vehicle loan for Rs. 700,000 to be paid back over 5 years at an interest rate of 9.25%. Your monthly payments for this loan after applying the above formula would be Rs. 14,616 for 5 years.

Fee and Charges

Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. PNB allows prepayment of vehicle loan after paying 1 EMI with prepayment Nil.

Processing Fee - PNB asks for a processing fee of 1.00% of loan amount. Max. Rs.6,000 with applicable service tax.

PNB Car Loan Top up, Balance Transfer

  • PNB offers car loan balance transfer from another bank. This is subject to your meeting other eligibility criteria
  • You can avail additional top-up car loan from PNB, subject to your eligibility

Documents required

Salaried Employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof –Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car


  • Filled up loan application form
  • 2 Passport Size Photo
  • Copy of Income Tax PAN
  • Identity Proof – Aadhaar, Passport/ Driving License/ Voter ID/ PAN
  • Quotation of car
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 3 months pay slip, 2 years Form 16, 3 months bank statement showing salary credit and any EMI debit
  • R.C of Vehicle and Insurance of Car.

Frequently Asked Questions on PNB Car Loan

How much interest is charged by PNB on car loan?

PNB car loan interest rates today are 8.50% to 8.95%.

What is the lowest EMI per lakh on PNB car loan?

If you apply for a car loan from PNB, your lowest EMI per lakh will be Rs. 1,584.

What is the maximum tenure of PNB car loan?

You can repay your car loan from PNB in a flexible period of 7 years.

How much car loan I can borrow from PNB?

PNB offers you 85% of on-road price of car as loan.

How much processing fee is charged by PNB on car loan?

PNB charges a processing fee of 1.00% of loan amount Max. Rs. 6,000 with applicable service tax.

Is age an eligibility factor to get car loan from PNB?

Yes, age is an important eligibility factor to get PNB car loan as you should be at least 21 years old at loan approval time and 65 years old at loan maturity time.

Are there any prepayment charges on PNB car loan?

You can take car loan from PNB with prepayment nil.

Can I add my spouse's income while applying for car loan from PNB?

You can combine your income with the income of your spouse to increase your loan eligibility and to get higher loan amount.

Home Loan Eligibility of All Banks

Pnb Car Loan Calculator

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