Is your Credit Score >750?
- Get low interest loans & Lifetime FREE credit cards
- Get customized Credit Health Report
- Improve your creditworthiness
Punjab and Sind Bank Car Loan Eligibility
A car loan is an invaluable product that makes automobile dreams come true for millions of consumers. There are several banks, NBFCs, and other financial institutions that offer car loans to purchase new and old vehicles.
Punjab and Sind Bank (shortly known as PSB) is one of the leading nationalized banks in India that offer car loans to individuals. The bank has been operational in the country for more than a century. The bank was founded in 1908 by visionaries Sir Sunder Singh, Bhai Vir Singh, and Sardar Tarlochan Singh, as a way to provide banking services to all sectors of people, from the economically weaker to economically stronger sections.
Today, the bank is one of the top nationalised banks in India with 1500+ branches across the country and employing over 9000 employees. Today, the bank offers several banking services, including digital banking, retail loans, and more. Applying for and availing a car loan at Punjab and Sind Bank is hassle-free provided an applicant meets the eligibility requirements.
Punjab and Sind Bank offers four-wheeler and two-wheeler loans under the PSB Apna Vahan loan scheme. Affordable interest rates, flexible repayment terms, hassle-free loan application, and easy eligibility, make Punjab and Sind Bank a preferred choice for car loans.
Here, in this guide, you can find all that you need to know about car loan eligibility, documentation, and features from Punjab and Sind Bank.
About Punjab and Sind Bank Car Loan Eligibility
- Overview of Eligibility for Car Loans from Punjab & Sind Bank
- Punjab & Sind Bank Car Loan Eligibility
- Punjab and Sind Bank Car Loan Eligibility Requirements
- Punjab and Sind Bank Car Loan Required Documentation
- What’s the maximum loan limit for car loans?
- Latest Punjab and Sind Bank Car Loan Interest Rates
- FAQs on Punjab and Sind Bank Car Loan Eligibility
Overview of Eligibility for Car Loans from Punjab & Sind Bank
Punjab and Sind Bank offers car loans under the scheme PSB Apna Vahan to individuals looking to purchase new or old four and two-wheelers. Not just individuals, but businesses (both corporates and non-corporates) can avail car loans from PSB to purchase commercial vehicles for business use.
Punjab & Sind Bank Car Loan Eligibility
Age Limits for Availing Car Loans from PSB
The minimum age of an individual for availing a car loan from Punjab and Sind Bank is 18 years. The maximum age depends on the applicant’s profession.
- For salaried individuals with no pension, the maximum age limit is 60 years
- For salaried individuals with a pension, the maximum age limit is 70 years
- For self-employed and professionals, the maximum age limit is 70 years
Punjab and Sind Bank Car Loan Eligibility Requirements
The bank offers car loans to both self-employed and salaried individuals, as well as proprietors and business owners for the purchase of commercial vehicles.
Punjab and Sind Bank Car Loan Eligibility for Salaried Individuals
- Age – Minimum 18 years and maximum 60 years for non-pensioned individuals (the maximum age limit is at the time of maturity of the loan) and maximum 70 years for pensioned individuals.
- Work Experience – Minimum of 2 years of employment with one year in the current job
- Residence Stability – Must have resided for two years in the city with one year in current residence (or should be staying in own house)
Punjab and Sind Bank Car Loan Eligibility for Self-Employed
- Age – Minimum 18 years and maximum 70 years (the maximum age limit is at the time of maturity of the loan)
- Income Proof – ITR (Income Tax Returns) for the last two years
- Business stability – Must be in the current business for the last two years
- Residence Stability – Must have resided for two years in the city with one year in current residence (or should be staying in own house)
Punjab and Sind Bank Car Loan Required Documentation
You must submit all the required documentation during the loan application. If the documentation is incomplete, there are chances of your loan application getting rejected.
| Proofs | Salaried Individuals | Self Employed Individuals |
|---|---|---|
| Age proof | Voter ID, Passport, driving license, PAN card, Aadhaar card, ration card with photo, employer certificate, school or college ID, or school leaving certificate | Voter ID, Passport, driving license, PAN card, Aadhaar card, ration card with photo, school or college ID, or school leaving certificate |
| ID Proof | Pan Card, passport, voter ID, Aadhaar card or driving license | Pan Card, passport, voter ID, Aadhaar card or driving license |
| Address proof | Passport, voter ID, EB bill, telephone bill, property tax receipt | Passport, voter ID, EB bill, telephone bill, property tax receipt |
| Income proof | Salary slips for the last 3 months, bank statement for the last 6 months showing salary being credited in the account and latest Form 16 | The balance sheet of the business for the last 3 years certified by a CA, ITR for the last 3 years, and 6 months of bank statements (current and personal) |
| Signature verification proof | PAN card, driving license or passport | PAN card, driving license or passport |
*Applicants may be required to submit additional documentation if required.
What’s the maximum loan limit for car loans?
There is no maximum ceiling for car loans from PSB. It’s determined on a case-by-case basis and is need-based. To know the loan amount you are eligible for, get in touch with your nearest Punjab and Sind bank branch.
Car Loan Margin
- For new vehicles – 15% of on-road price
- For old vehicles – 25% of the current value
For existing borrowers with Punjab and Sind bank (people who have availed other retail loans from the bank) the margin is NIL on-road prices. However, this does not include car accessories. For accessories, the prevailing margin rates are applied.
Latest Punjab and Sind Bank Car Loan Interest Rates
Punjab and Sind Bank follows the MCLR (Marginal Cost of Funds based Lending Rate) to determine the interest rate for its borrowers.
The current MCLR rates for Punjab and Sind Bank (with effect from 16/8/2019) are as follows:
| Loan Tenure | Interest Rate (in %) |
|---|---|
| Overnight MCLR | 8.20 |
| 1 month MCLR (more than overnight and up to 1 month) | 8.30 |
| 3 months MCLR (more than 1 month and up to 3 months) | 8.40 |
| 6 months MCLR (more than 3 months and up to 6 months) | 8.50 |
| 1 year MCLR (more than 6 months and up to 1 year) | 8.50 |
| 3 years MCLR (for all tenures more than 1 year) | 9.20 |
*Note that MCLR rates are likely to undergo revision periodically as determined by the RBI.
The applicable interest rate for the PSB Apna Vahan car loan from Punjab and Sind Bank is:
| Type of Vehicle | Rate of Interest (for all Tenures) |
|---|---|
| New four wheeler | 1 year MCLR + 0.25% |
| Old four-wheeler | 1 year MCLR + 3% |
Repayment Schedule
Borrowers can choose their preferred repayment tenures based on the EMIs that they can afford. The maximum tenure is:
- For new vehicles – a maximum of 84 months (7 years)
- For old vehicles – a maximum of 60 months (5 years) subject to the age of the vehicle. The total period of repayment, along with the age of the vehicle, must not exceed 84 months.
FAQs on Punjab and Sind Bank Car Loan Eligibility
1. I am over 70. Will I be considered for a car loan at PSB?
Though the maximum age limit for applying for a car loan at PSB is 70 years, the bank considers applications from individuals beyond 70 provided they apply along with a younger co-borrower and show proof of adequate repayment capacity.
2. What are the documentation charges for PSB car loans?
The applicable documentation charges include only the actual stamp and revenue expenses.
3. What are the prepayment charges for PSB car loans?
There are no prepayment penalties or foreclosure charges for individual borrowers and sole proprietorships. However, for corporate car loan borrowers, the foreclosure charges are 1% on the outstanding balance at the time of foreclosure.
4. Do borrowers require a guarantor to be eligible for car loans from PSB?
The conditions of guarantor are as follows:
- For individual borrowers and sole proprietorships:
- No guarantor is required, when the repayment is debited from the salary account or directly as salary deductions.
- In other cases, individual borrowers can include their family members such as spouse or adult children as guarantors.
- For corporate borrowers and partnership firms
- No external guarantor is required if all partners submit the required documentation and are jointly responsible for the liabilities.
- Personal guarantee of a trustee/director is required for joint-stock companies, associations, and trusts.
Write a review
