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PNB Car Loan EMI Calculator

PNB Car Loan Calculator India 2021

Last Updated 12th Apr 2021

  • Get monthly EMI as low as ₹ 1,536 per lakh with PNB now offering vehicle loans with loan tenure upto 7 years.
  • Lowest car loan interest rate currently offered by PNB is 7.55%, for which the EMI per ₹ 1 Lakh loan amount comes to ₹ 4,502 for a 2 year loan and ₹ 2,006 for a 5 year loan.
Loan Amount2 Year Loan4 Year loan7 Year loan
₹ 5 Lakh₹ 22,511₹ 12,101₹ 7,681
₹ 10 Lakh₹ 45,022₹ 24,202₹ 15,363
₹ 15 Lakh₹ 67,534₹ 36,303₹ 23,044
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Car Loan EMI Calculator PNB

PNB Car Loan EMI

  • Car loan EMI (or equated monthly installment) is a fixed amount of money paid by you to PNB against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With PNB offering vehicle loans with loan tenure upto 7 years, the loan EMI can be as low as ₹ 1,536 per lakh, to make it more affordable and convenient to meet your car needs. Rate of interest offered by PNB are as low as 7.55%.

The EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

Features of PNB Car Loan

  • Borrower age should be between 21 years to maximum 65 years.
  • Maximum vehicle loan amount offered by PNB is upto 85% of on-road price.
  • Interest rates starts @ 7.55% depending upon down payment, net income and other factors.

Car Loan EMI Calculator PNB at different tenure

Car Loan EMI for different loan amounts and tenures @ 7.55% interest rate
Loan Amount 2 Years 3 Years 5 Years 7 Years
1 Lakh₹ 4,502₹ 3,113₹ 2,006₹ 1,536
3 Lakh₹ 13,507₹ 9,339₹ 6,019₹ 4,609
5 Lakh₹ 22,511₹ 15,565₹ 10,031₹ 7,681
10 Lakh₹ 45,022₹ 31,129₹ 20,062₹ 15,363
  • As you can see in the above table, for various loan amounts taken at the lowest rate of interest, EMI differs with changes to tenure at 2 to 7 years. Your EMI is higher when you take loan for a shorter tenure of 2 years and it is lower when you apply for a higher tenure of 7 years.
  • Your EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, every month the proportion of interest payment and principal repaid within each EMI is different. With every EMI, the proportion of principal repayment in EMI keeps increasing and the interest component in EMI keeps reducing.

Use EMI Calculator to calculate your interest on vehicle loan at different tenure

Vehicle Loan EMI for ₹ 1 Lakh loan amount at lowest 7.55% interest rate offered by PNB for different tenures
2 years 3 years 5 years
PNB EMI for a loan amount ₹ 1 Lakh at 7.55% ₹ 4,502 ₹ 3,113 ₹ 2,006
Total amount you pay back to the bank including principal and interest ₹ 1,08,054 ₹ 1,12,065 ₹ 1,20,370
Interest you have to pay over loan tenure ₹ 8,054 ₹ 12,065 ₹ 20,370

The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a ₹ 1,00,000 loan for a period of 5 years, you pay the lowest EMI of ₹ 2,006. However, you pay an interest of ₹ 20,370 on a ₹ 1,00,000 loan.

In contrast, if you take a ₹ 1,00,000 loan from PNB at the lowest loan rate offered for a period of 2 years, you pay a higher vehicle loan EMI of ₹ 4,502 and pay an interest of only ₹ 8,054 which is less than half of what you paid in 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting PNB Car Loan EMI

  • Loan amount – This is the amount borrowed by a borrower from PNB. If you apply for a higher loan amount, your monthly EMI will be high. PNB gives maximum loan of 85% of on-road price of the car.
  • Interest rate - Interest rates is the rate charged by PNB on your vehicle loan. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by PNB is 7.55%. However, it is advisable to do complete market research and compare rates online before you apply for loan.
  • Loan tenure – This is the period in which you can repay your loan in PNB. Longer loan tenure means lower car loan EMI. Generally, PNB offers loan for a maximum tenure of 7 years.

PNB Car Loan Calculator Formula

Emi Calculator Formula

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

Here is an illustration of how PNB Car Loan EMI is calculated:

Let’s say you take out a car loan for ₹ 7,00,000 to be paid back over five years (or 60 months) at an interest rate of 10%. Your monthly payments for this loan after applying the above formula would be ₹ 14,873.

In above formula,

P = loan amount. This should be 85% of on-road price

n = tenure in months. For PNB, this can be 7 years.

r = rate of interest per annum. Current PNB interest on car loan is 7.55%

Tips to decide the right amount of EMI

  • Ascertain the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Limit your loan amount after accounting for your own available funds. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before, taking a loan it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your PNB car loan eligibility: Your eligibility is an assessment of your repayment capacity based on your monthly income. PNB provides an LTV upto 85 % of on-road price and expects the borrower to fund the remaining value of property by own money. For example, at its lowest LTV, PNB would expect its borrowers to provide margin money. In case this margin payment is higher than your available funds as estimated by you, you might need to look for higher LTV loans, which may carry higher interest rates and hence, will result in higher EMIs.
    • Multiplier based loan amount eligibility – PNB calculates your loan amount eligibility by applying a multiplier to your net take home salary. This is the simplest method for calculating a loan eligibility used by banks. Generally it is 2.5 to 3 times the annual salary for salaried individuals and 6 times the annual income for self-employed professionals. The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size and growth in turnover.
    • FOIR based loan amount eligibility – PNB will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. Generally, banks lend up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. PNB's assessment may be different from your own assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.

Quick guide on PNB Car Loan

  • Key Features
    • Loan available for both salaried and self employed.
    • Borrowers within the age group of 21 and 65 years.
    • Maximum loan tenure of 7 years.
    • Interest rates in the range of 7.55% to 7.80%.
    • Lowest EMI of ₹ 1,536 per lakh.
  • PNB vehicle loan calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

Car loan EMI – EMI changes in case of prepayment

In case you prepay your vehicle loan, a small penalty is levied. Prepayment in PNB is Nil. When you prepay, the outstanding balance on your vehicle loan reduces. PNB gives you two options:

  • Reduce your loan tenure and keep EMI on your car loan unchanged: This option allows you to close your loan earlier and save the interest outgo associated with the remaining tenure. This is suitable for borrowers who feel that they have adequate income to continue servicing the same level of EMIs.
  • Reduce the amount of EMI and keep your loan tenure same: This option allows you to reduce your monthly EMI and hence, increases the availability of monthly surplus which you can deploy for other purposes. This is suitable for borrowers who anticipate higher monthly personal expenses and hence, would want to reduce their monthly EMI obligations.

FAQs

Why should I calculate PNB loan EMI before taking a loan?

It is advised to calculate vehicle loan EMI prior to taking a loan. There are several benefits of calculating your PNB housing loan EMI as discussed below-

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.
  • If you already know the EMI you have to pay each month, then you can plan your spending accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your car loan in future when you have surplus amount.

What is the lowest EMI per lakh offered by PNB on Car loan?

PNB offers car loan at 7.55% interest rate and hence lowest EMI on per lakh loan amount is ₹ 1,594

Can I prepay my PNB car loan?

PNB offers you an option of prepayment at Nil charges.

Is there any processing charge on car loan from PNB?

Car Loan from PNB charges a processing fee of Maximum is ₹ 0

Will I get the car loan from PNB if I have a bad credit score?

No, for taking a loan from PNB, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have low credit score.

How does a car loan repayment happen?

The repayment of a car loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favor of the bank at the time of disbursing the loan.

Can I have a co-applicant while applying for a Car loan with PNB?

Yes, you can opt for a co-applicant to take car loan from PNB that will increase your car loan eligibility as the income of the co-applicant is also taken into account.


PNB Car Loan News - Apr 2021
  • 2021-02-08 : PNB reported net profit of 506 crores
    PNB posted an 18.5% year-on-year decline in its net profit to Rs 506 crore for the quarter ended December. Further, the bank reported net interest income on the back of retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans at Rs 8,313 crore.
  • 2020-12-29 : PNB completes IT integration of all branches of two merged entities
    Punjab National Bank clarified that the customers of the former OBC Bank are now migrated to CBS of PNB wherein they can transact seamlessly via existing branches and digital banking channels like internet banking and mobile banking. The amalgamation of PNB, United Bank of India and OBC has come into effect from April 1, this year. The merger created the second-largest nationalized bank in terms of business and total branches.
  • 2020-12-02 : PNB launched loan management solution to speed up delivery
    Punjab National Bank launched a tech-based loan management solution called LenS-The Lending Solution. It is aimed at speeding up and maintaining accuracy in online loan processing and sanctioning of credit proposals. It will be implemented in a phased manner for all kinds of loans including MSME, agriculture, retail and other credit.
  • 2020-11-03 : PNB reported an 18% decline in Q2 net profit
    PNB posted a 22% increase in net profit to Rs 621 crore in the second quarter against Rs 507 crore in the year-ago period. Bank net interest income rose to Rs 8,393 crore and the bank’s net interest margin improved to 3.21% for the quarter ended September. Further, PNB’s total income backed by retail loans like home, personal, gold, two-wheeler and car loans along with mudra and business loans stood at Rs 23,439.
  • 2020-08-25 : PNB to offer one-time loan restructuring option
    Punjab National Bank is planning to provide a one-time loan restructuring window to corporate and retail loans like home, personal, gold, two-wheeler, car, along with business and mudra loans. The plan is to assist customers whose income has decreased due to COVID-19 pandemic and subsequent lockdown.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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