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Punjab National Bank is a well known name in the banking world. It is a public sector bank having its headquarters in New Delhi, India and has more than 11,000 branches across the country and many representative offices across the globe.

Punjab National Bank has many loan products that cater to the specific needs of the borrowers. These loan products include home loans, education loans, vehicle loans, corporate loans, personal loans, agricultural loans and many similar products.

Punjab National Bank offers vehicle loans for purchasing new as well as old/ pre-owned cars (not older than 3 years). The details of the vehicle loans for pre-owned/ used cars of the Bank are provided here.

Eligibility Criteria for PNB Used Car Loans

Punjab National Bank Used Car Loan

Punjab National Bank offers easy and affordable loans for purchase of old cars provided they are not older than 3 years and are for personal or private use only. The eligible applicants for the Bank’s used car loans are mentioned below.

  • Individual borrowers (joint borrowing is permitted by the Bank provided they are family i.e. parents/spouse or earning children)
  • Corporate Entities
  • Non-Corporate Entities

The Bank has laid down a basic income criterion for the individual borrowers. The minimum income requirement of the Bank is a net monthly salary/ pension/ income of Rs. 25,000. Borrowers can include the income of their parents/ spouse or earning children to meet the minimum income criterion and such person will be included as a co-borrower for the purpose of the Bank’s used car loan.

The Bank also states that it will not require any minimum monthly income requirement in case the applicant provides 110% of liquid security in the shape of a term deposit.

Documents Required for PNB Used Car Loans

Punjab National Bank requires basic KYC documents as part of its documentation process. These KYC documents include,

  • Identity Proof
  • Address Proof
  • Recent Photographs
  • Income Proof
  • Bank Statements

Vehicle related documents are also required as part of the documentation process of the Bank. These basic vehicle related documents are,

  • Proforma invoice from the authorized dealer or seller of the vehicle
  • RC copy of the vehicle
  • Insurance copy of the vehicle

Features of PNB Used Car Loans

PNB has very attractive loan offers for the used car loan category. The purpose of these loans is only for the private use or personal use of the borrower. PNB Used car loans can be sought for purchase of used/pre-owned car/ van/ jeep/ MUV/ SUV (provided such vehicles are not older than 3 years).

The salient features of the used car loans of the Bank are provided hereunder.

Amount of loan to be sanctioned – 

The amount of loan that can be sanctioned by the bank is calculated to be lower than the following parameters.

  • Rs. 1,00,00,000
  • 25 times of Gross monthly Salary/ Pension/ Income of the applicant
  • 75% of the value of the vehicle

PNB does not provide any upper limit for loans to be sanctioned to the business concerns. The loan sanctioned for business concerns will depend on need basis.

Tenure – 

The tenure of the used car loans of the Bank is 60 months or 5 years. This repayment schedule is considered to be extensive or comfortable in this category as compared to many other repayment options available from other banks.

Rate of Interest – 

PNB offers floating rate of interest as well as a fixed rate of interest on used car loans. The rate of interest of the PNB used car loans depends on the credit score of the applicant as well as the credit profile and the applicant’s relationship with the bank. The current rate of interest of the Bank for used car loans is approximately around 11%.

PNB Bank offers a concessional rate of interest for women borrowers as well as existing borrowers that already have a home loan with the Bank.

Margin – 

PNB Bank requires a margin of at least 25% to be provided for getting the used car loans of the Bank. The margin requirement of the Bank is in line with the peer banks and the prevailing norm in this segment of loans.

Processing charge – 

PNB charges 0.25% of the loan amount as its processing charges. These charges are further subject to a minimum of Rs. 1,000 and maximum of Rs. 1,500.

Prepayment/foreclosure – 

The Bank does not charge any prepayment charges on loans that have a floating rate of interest. For loans that are subject to a fixed rate of interest, PNB charges 2% of the outstanding amount that is prepaid. However, the Bank has excluded a couple of cases where the borrowers do not have to pay any prepayment charge on the amount prepaid. Such cases are,

  • In case where the borrower has pre-paid the loan out of his/her own funds
  • In case where the borrower has shifted to another bank within 30 days of the event of an upward revision in the rate of interest or any change in terms of the loan.

Guarantee – 

PNB does not require any guarantee if the net take home pay of the borrower is more than Rs. 50,000 per month. Also, if the borrower is a permanent employee of the following organizations, PNB has excluded them from guarantee requirement irrespective of their income.

  • Central Government
  • State Government
  • Public Sector Banks
  • MNCs
  • Listed Companies of BSE or NSE whose shares are actively traded and are quoted at a premium.

The other case where the Bank does not require any guarantee is if the borrower is an existing home loan or personal loan borrower with the Bank.

Security – 

The Bank has the security of hypothecation of the vehicle to be purchased out of the loan. This is the primary security of the Bank against the loan.

Other charges – 

The bank does not have any separate documentation charge or any other upfront fees related to used car loans other than the processing fees.

These are some of the salient features of the PNB Used Car Loans. Customers can contact the Bank for any other details that they may require regarding the used car loans of the Bank.

PNB Used Car Loan Application Process

PNB has a very simplified and faster application process for used car loans. Customers can visit the Bank and get the application form directly from the nearest branch.

Customers will then have to submit the duly filled application form along with the necessary documents as per the guidelines of the Bank in this regard.

The customers can also opt for the online application of the used car loan. The link for the same can be found at the website of the Bank under the following path

Home - Loans - Vehicle LoansPNB Car Loan - Apply online

The link for applying online can be found at the right corner of the car loan page of the Bank.

PNB usually takes around 48 hours to 72 hours in order to process the loan application. The application has to be complete along with the necessary documents for the application to be processed and the loan to be sanctioned.

PNB Customer Care

The customer care service of the Bank is available 24x7 throughout the year for any queries or concerns that the customers may have with respect to the used car loans of the Bank or any other products and services of the Bank. Customers can contact the Bank through the following contact channels and address their queries or get any information.

Toll free numbers – 1800 180 2222, 1800 103 2222

Tolled number for International Customers - +91 120 2490000

Landline Number – 011 28044907

Email Id - care[at]pnb[dot]co[dot]in

Corporate Office – Plot No. 4,

Sector – 10


New Delhi – 110075

FAQs – PNB Used Car Loan

1. What is the tenure for PNB used car loans?

The tenure for PNB used car loans is 60 months or 5 years.

2. What is the maximum amount that can be sanctioned as loan under PNB used car loan scheme?

PNB has not laid any upper limit for sanctioning a loan to the business concerns. Loans in such cases are sanctioned on a case to case basis. For individual borrowers the amount that can be sanctioned as loan is calculated to be lower of, Rs. 1,00,00,000, 25 times of Gross monthly Salary/ Pension/ Income of the applicant, 75% of the value of the vehicle

3. Does the Bank charge any prepayment charges on used car loans?

PNB charges a prepayment charge of 2% of the outstanding pre-paid on loans that have a fixed rate of interest. No prepayment charge is levied on loans that have floating rate of interest.

4. What is the toll free number of PNB?

The toll free number of the bank is 1800 103 2222/ 1800 180 2222.

5. What is the margin requirement of the Bank’s used car loan?

PNB requires the borrowers to provide a margin of minimum 25% of the value of the vehicle.

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