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PNB Car Loan Interest Rate

PNB Car Loan Interest Rate May 2020

Last Updated 06th May 2020

PNB New Car Loan interest rate starts from 8.75% and PNB Used Car Loan interest rates starts from 11.20%. These are Floating rate loans and are one of the best car loan rates in India. Rate of interest vary by borrower occupation, loan amount and loan tenure.

Features New Car Loan Used Car Loan
Processing Fee 1.00% Max Rs. 6,000 1.00% Max Rs. 6,000
Loan Tenure Upto 7 years Upto 5 years
Lowest EMI ₹ 1,596 per lakh ₹ 2,064 per lakh
Loan Amount Upto 85% of on-road price Upto 70% of market value
Prepayment Charges Nil Nil

Attractive interest rates on car loan

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 on car loan
  • Nil prepayment charges
  • Flexible repayment options

PNB Car Loan Interest Rate

PNB Car Loan interest rate depends upon following factors -

  • Loan amount: Generally banks offer lower interest rates for higher amount. PNB offers 85% of on-road price of your car.
  • Your Salary: Higher salary bracket individuals are offered loans at lower interest rates. Car Loan interest rate PNB 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 PNB car loan rate.
  • 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.
Car Loan EMI Calculator
Car Loan Eligibility Calculator

PNB Car Loan Eligibility

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

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

Car loan eligibility 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 auto 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 best PNB car loan interest 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 auto loan amount depends upon your income. PNB gives 100% of ex-showroom price depending upon the value of the car. To improve chances of approval, apply for a loan amount that you can comfortably service and check your PNB car loan status online and avial multiple benefits.

PNB Car Loan 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. 1,596 per lakh loan amount at lowest car 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.
PNB EMI Car Loan Calculator
  • 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.

Illustration

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

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

Where,

  • 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.

PNB Auto Loan 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. ₹ 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 for PNB Car Loan

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

Self-Employed

  • 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

What is car loan interest rate offered by PNB ?

As per current interest rates, PNB car loan interest rates are in the range of 8.75%to 9.20%.

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

Lowest EMI per lakh is ₹ 1,276 for PNB for a loan availed at an interest rate of 8.75% and for a tenure of 7 years.

What is the maximum tenure of PNB car loan?

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

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

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

How much car loan I can borrow from PNB?

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

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.

Compare Car Loan Interest Rates of PNB with other banks


PNB Car Loan News - May 2020
  • 2019-08-28 : Punjab National Bank links retail loans with repo-rate
    With effect from August 27 2019, Punjab National Bank linked its retail loan rate with a repo rate. This will make Housing and car loans, cheaper for borrowers, priced at 8.25%-8.35% and at 8.65%, respectively. The repo rate linked loan is 0.25% cheaper than the MCLR rate.
  • 2019-07-02 : PNB makes home loans cheaper
    Punjab National Bank (PNB) has cut its lending rates by 5 basis points which will make all the loans, including home loans, auto loans, and mortgage loans cheaper. These loans are benchmarked at a one-year MCLR rate, which is 8.40% at present as compared to 8.45% earlier. The rates are effective from July 1, 2019.
  • 2018-04-30 : Two-wheeler loans grow 32%
    Led by non-bank lenders, two-wheeler loans experienced an impressive 32% growth in 2017. The gross loan portfolio for the bike loan segment grew to Rs. 39,100 crore as on December 2017. Gujarat had been reported as having the highest non-performing assets (NPAs).
  • 2018-03-06 : Home, auto loans to get costlier
    Home and auto loans are expected to get costlier as banks have increased their benchmark lending rates. State Bank of India (SBI), Punjab National Bank (PNB) and ICICI Bank Ltd have increased their MCLR by 10-20 bps in the last week. SBI new MCLR stands at 8.15% from 7.95%, whereas ICICI Bank raised one-year MCLR from 8.20% to 8.30%.
  • 2018-03-05 : Punjab National Bank hikes MCLR by upto 15 basis points
    PNB hiked its MCLR by 15 basis points in all tenors. These rates will be effective from March 1. Consequently, the MCLR is now is the range of 7.80% and 8.60%.
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