Punjab National Bank Car Loan Eligibility

Car loans is an important product included in the portfolio of all leading banks and financial institutions. Car loans provide the means to millions of Indians to own their dream car. Whether your dream car is a small hatchback or a luxury SUV, banks have car loans for everyone.

Punjab National Bank, a leading bank in the country, provides quick and hassle-free car loans to purchase new and used cars. Thus, customers have a wide range of cars to choose from. The maximum loan amount offered is Rs.100 Lakhs or 25 times the net monthly income which ensures that you get to buy your dream car with all the top end features. And, if you are a Business Concern (Corporate or non-Corporate), there is no stipulation on the loan amount.

Before applying for a car loan, it is important to check the car loan eligibility criteria in order to get successful approval on the loan. A hard enquiry on the loan can hit your credit score, and a rejection can further hurt your credit score.

About Punjab National Bank Car Loan Eligibility

Factors That Impact Punjab National Bank Car Loan Eligibility
Punjab National Bank Car Loan Features
Punjab National Bank Car loan interest rates
FAQs

Factors That Impact Punjab National Bank Car Loan Eligibility

While processing a car loan application, Punjab National Bank considers a few important factors for approval.

Credit score – Credit Score apprises the banker about your creditworthiness. A credible borrower poses less risk for the banker. Hence, a person with high credit score is a favourable borrower for the bank. Your credit score is calculated based on your past credit history, like repayment of loans, timely payment of credit card bills, etc.

If you have any unpaid loans or any outstanding amount on your credit card, you could repay them before applying for the loan. This would ensure a quick loan approval process. Paying your credit cards on time maintains a healthy revolving credit that also helps in a good credit score.

Age – The minimum age to apply for a car loan is 21 years of age. The maximum age up to which one can repay a loan is 65. Hence, younger the borrower, more the earning years he/she has to repay the loan comfortably.

Income level – Though banks offer loan up to 90% of the cost of the vehicle, the loan amount ultimately depends on your income level. The banks usually want to make sure that deductions from your monthly net income, after considering the EMI and other liabilities you mention in the loan application, are not more than 60%. This can be easily remedied by adding an earning member of the family as a co-applicant on the loan application. Even if the vehicle is not purchased on their name, they can still be named as co-applicant. Father, mother, siblings and spouse, if an earning member, can increase the income level and hence fetch higher loan amount.

Debts & liabilities – Any existing debts on your name can increase the liability for you. Banks consider any and all debts or loan outstanding to decide on the loan amount and the rate of interest. However, if you have a good repayment history on your debts and loans, it will increase your credit score. You can either pay off any outstanding loans or credit cards before applying for a fresh loan or make sure that you maintain a good repayment history to have a healthy credit score.

Punjab National Bank Car Loan Features

Punjab National Bank car loans can be availed to purchase any four-wheeler of your choice. Customers can purchase new cars/jeeps/vans/MUV (Multi Utility Vehicles) or SUVs (Sports Utility Vehicles). If one is going for a Used Car Loan, then they can purchase a car/van/jeep/MUV/SUV, which is not older than three years.

The minimum net monthly salary requirement is Rs. 20,000 which widens the income level eligibility category.

Punjab National Bank also has tie-ups with manufacturers and dealers. When one purchases a new vehicle with an approved dealer or manufacturer, the bank provides a loan amount of up to 90% of the vehicle cost. One can also purchase the vehicle at a dealer of their choice and avail a loan amount of up to 85% of on-road price including one-time road tax & insurance. For old vehicles purchase, Punjab National Bank offers up to 70% loan amount.

Punjab National Bank offers a repayment tenure of 84 months for new car loans and 60 months for used car loans. The bank also gives special considerations for people engaged in agriculture and allied activities. They get an EMI payment option of half yearly or yearly intervals that coincides with the time of harvest.

Punjab National Bank does not charge any pre-closure charges if the loan has been availed under the floating interest rate option. For fixed rate option, a nominal rate of just 2% of the total outstanding amount is charged as pre-payment charges. This charge too shall be waived in case the loan is repaid with the borrower’s own funds.

Punjab National Bank Car loan interest rates

Punjab National Bank offers attractive interest rates for its car loan customers. It gives specialized rates for women borrowers too.

The interest rates are based on the on-date MCLR plus the applicable percentage fixed by the bank.

Category	Floating Interest rate p.a.
Women, Punjab National Bank Pride customers, Corporates (irrespective of the credit score)	MCLR* + 0.60% With a current MCLR rate of 8.50%, this category gets an interest rate of 9.10%
All others	Credit score above 750	MCLR + 0.60%
	Credit score of 700 – 749	MCLR + 80%
	Credit score less than 700	MCLR + 1.05%
Fixed Rate
For Punjab National Bank Pride customers	MCLR + 0.95%
For everyone	MCLR + 0.95%

*current MCLR rate is 8.5%

Frequently asked Questions

(1) What are the types of car I can purchase?

(2) What are the major factors that impact car loan eligibility?

Car loans are approved based on one’s age, income, credit score and any existing debts.

(3) Are there pre-closure charges if I prepay my loan?

Punjab National Bank does not charge any pre-closure charges on car loans availed with floating interest rate. However, for fixed rate loans, a nominal 2% of the total outstanding is charged as pre-closure charges. Even this charge is waived off if the loan is paid-off with own funds.