Punjab National Bank Car Loan
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Punjab National Bank Car Loan
Is owning a car a distant dream? Why so? Wondering which model to buy or how to manage your finances or worried about getting a good deal or even reconsidering to buy a new car and settle with a second hand one? You are not alone! It is quite natural to have these questions in your mind when the thought of purchasing a four wheeler pops up. Whether you are a salaried individual or a professional or a businessman, chalking out your budget to buy a car is the most important decision that you will take, out of all the factors to be considered.
Today, we are bombarded with many financial options and financial institutions that are ready to lend money. While getting a loan has become lot easier in the recent years, making a decision on the basis of numerous car loan details out in the market has become more difficult. It is important to understand the terms & conditions of car loans and check its suitability to our financial needs. Once you have cleared the basic loan eligibility criteria with leading banks, the processing time for a car loan is very quick today. And in no time, you will be able to book your favourite model!
Understanding a Car Loan
A car loan helps you buy a car without digging much into your savings. The total value of the car minus the amount that you can personally pay can be arranged through a car loan. Today, all leading banks and lending institutions offer attractive car loans. You will have many car loan details to choose from and sign up with a bank that best suits your financial needs.
First step towards taking a car loan is to assess the budget that you have to pay off the loan debt. Secondly, one needs to get their credit score checked. This facility is available with most of the leading banks and financial service providers like www.creditmantri.com. This step is very important in getting a car loan as all banks and lenders refer to this score before offering the car loan and deciding the interest rate. It is recommended that you have a good credit score (pay off existing debts as much as possible) before applying for a car loan.
Once your finances have been sorted out, choose any two or three car models for comparison within your budget and work out the car loan details like EMIs, interest rate, tenure of the loan, pre-closure etc. with your preferred bank.
Punjab National Bank Car Loan Details
Punjab National Bank (PNB) is not a new name in the banking industry. It has been in existence since 1895 and is considered India’s first Swadeshi Bank. With 6900+ branches across the country, the bank caters mostly to the semi-urban and rural areas. Retail and Business loans, Investments, Agriculture banking, Government Business, NRI services, Mutual Funds are some of the products offered by the bank. The bank is also offers internet banking and other e-services for quick and easy banking process.
The bank offers car loan facility across the country. While most of the car loan details are available online, you can go through the critical details mentioned below:
PNB Car Loan Eligibility
| AGE | Normally 21 years |
| EMPLOYMENT TYPE | Individuals/Proprietorship/Reputed Firms/Govt. Employee/Professionals/Corporates/ |
| LOAN PURPOSE | To purchase New Car/Van/Jeep/MUV/SUV Old car/Van/Jeep/MUV/SUV not older than 3 years Private Use only |
| INCOME CRITERIA | Minimum net monthly salary/pension/income of INR 20000/- |
| MAXIMUM LOAN AMOUNT | For Individuals/Proprietorship concerns : INR 100lac or 25 times of net monthly salary/pension/income, whichever is lower For Business Concerns both corporate and non-corporate : No ceiling on the loan amount |
| MARGIN | New Car : 15% of on-road price inclusive of one time road tax & insurance PNB arrangement with dealers : 10% of on-road price Old cars : 30% of the car value |
| TENURE | Maximum 84 months for a new car Maximum 60 months for a used car |
In case, you are involved in agriculture and related activities, repayment of the loan can be done at half yearly/yearly intervals coinciding with the time of harvest.
Documents Required
What are the documents required for Punjab National Bank car loan?
- Residence of Proof
- Photo ID and Age Proof
- Signed application form with photograph
- Bank statement of last 6 months
- Salaried Applicants need to submit salary slips of last 3 months and Form 16
- Self Employed Applicants need to submit Income Tax Returns of last 3 years and Audited Balance Sheet + P&L Account
Punjab National Bank Car Loan Interest Details
PNB Car Loan offers competitive interest rates and it includes a fixed and variable component. The variable component is called MCLR (Marginal Cost of Funds – Based Lending Rate). Currently, the MCLR is at 8.30%.
| FLOATING INTEREST RATES | Individuals & Corporates with PNB score is 60 and above or collateral security is available – 9.40% Women Applicants – 9.30% Other categories – 9.65% |
| FIXED INTEREST RATES | 9.55% for all |
Applicable Fees and Charges
There are some fees and processing charges levied by the bank while taking a car loan. This is subject to change from time to time and it is advisable to check with the bank at the time of application. The following car loan details for fees can be used for reference:
| SECURITY INSPECTION CHARGES | Nil for loan account with regular periodic inspections/INR 1000+tax for irregular accounts |
| DOCUMENTATION CHARGES | INR 250 to INR 1000/- |
| PRECLOSURE CHARGES | NIL for floating rate accounts 2% on the outstanding pre-paid for fixed rate accounts |
| EMI LATE PAYMENT PENALTY | 2-3% |
Prepayment charges are not levied on borrowers who have made the payment from their own sources. No charges are levied when the borrower moves to a different bank in 30 days post an increase in interest.
PNB Car Loan Highlights
- If you have a net income of INR 20,000 per month, it is possible to apply for a car loan with PNB. You can also add your spouse’s income to make the overall application attractive.
- Individuals and Proprietorship can avail loans upto 25 times of the monthly income or INR 100 lakhs whichever is lower
- For new cars, the bank will fund upto 85% of the ex-showroom price and in case of used cars, it is 70%
- The bank requires a third party guarantor or collateral to indemnify the car loan. However, at the discretion of the bank, this can be relaxed depending on the credit worthiness of the applicant.
How to Apply
You can visit the nearest branch of the bank and personally meet a representative to understand the car loan details. Thereafter, the application form can be duly filled and submitted directly to the bank.
Alternatively, you can get the application form from the PNB website.
Car Loan Eligibility Check
It is recommended to get your credit scores before applying for the car loan to avoid rejection of your application. The easiest and most reliable way to check your credit score is to visit www.creditmantri.com and feed the required financial information. In case, your credit score is low, you may want to pay off pending dues and thereafter, apply for the car loan.
Car Loan EMI Calculator
It is also extremely helpful to use an EMI calculator to understand the monthly outflow in your EMIs. You can arrive at a comfortable figure by using the Credit Mantri EMI calculator to work out different combinations of tenure, principal loan amount and interest rate. This will help you control your overall finances in an efficient manner even after taking the car loan.
Punjab National Bank Car Loan FAQs
1. What is included in the on-road price of a car?
The on-road price of the car includes the registration charges, insurance, accessories (if any), service package and warranty
2. Can I track my loan application status online?
Yes. This is possible by creating a login account and entering a password.
3. Do I need to provide a third-party guarantee for PNB car loan?
Yes. A collateral security or a third party gurantee is required by PNB. However, relaxations are made in some cases depending on the credit status of the applicant.
4. Can I make a joint application for car loan?
Yes. You can have a co-applicant for a car loan with PNB
5. What are the processing charges for PNB car loan?
The bank charges 1% of the car loan amount which is subject to a maximum of INR 6000/- (excluding tax)