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Punjab and Sind Bank is a public sector bank that has its headquarters in New Delhi. It has many customer segments like retail banking, corporate banking, MSME banking, agricultural banking, and international banking. Apart from this the bank also has various government schemes and priority banking among many other customer-friendly services.

The loan products of the bank are available for the retail segment as well as corporate sectors. These loans include the popular car loans for personal use i.e. for retail customers. The retail car loans from Punjab Sind Bank are known as PSB Apna Vahan. Details of these loans are mentioned below.

Key Features of PSB Apna Vahan Loan

Punjab Sind Bank Car Loan Interest Rates

The car loan of PSB comes with a range of benefits and features that make it a preferred choice among other car financing options. Some of such highlights of the PSB Car Loan are tabled below



Maximum Amount of Loan

Need Based

Rate of Interest

For New Cars

  • 7.10% - 7.90%

For Used Cars

  • 9.85% - 10.50%


For New Cars

  • Maximum 84 months (7 years)

For Used Cars

  • Maximum 60 months (5 years)

Primary Security

Hypothecation of the vehicle to be purchased out of loan 


As per Bank’s Discretion (depends on case to case basis)

Processing Charges

Full Waiver of processing charges 


For New Cars

  • 15%

For Used Cars

  • 25%

These features above are discussed in depth hereunder.

Quantum of Loan

Punjab and Sind Bank provides up to 85% of the value of the vehicle. The loan provided by the bank is need based. This means that the bank has not set any upper limit for the maximum amount of loan that can be sanctioned under this loan scheme. It is dependent on the credit profile of the applicant as well as their repayment capacity.

Rate of Interest

PSB Car Loans are based on the Repo rate with the addition of the cost that will be incurred by the bank to lend money. These rates differ in case of loans for purchase of new cars or second hand cars. The current applicable rates levied by the Bank for PSB Car loans are tabled below.

Type of vehicle

Rate of Interest

New Cars

7.10% - 7.90%

Used Cars

9.85% - 10.50%


The repayment period of car loans of the bank is different in case of new cars or used cars. The maximum period of repayment in case of mew cars is 7 years and 5 years in case of used cars. Furthermore, the bank states that in case of used cars, the repayment period including the age of the vehicle cannot exceed the overall period of 7 years. Borrowers can repay the loan through post dated cheques or ECS or auto debits.


Margin money is a mandatory requirement to be furnished by the borrower as part of the loan application. It is a portion or percentage of the value of the vehicle. The bank has specified the margin money to be furnished by the borrowers in case of purchase of used cars as well as new cars. The minimum margin money required by the Bank is tabled below.

Type of Loan

Margin Money

New Cars

  • 15% of the on road price of the car
  • NIL in case of existing borrowers

Used Cars

25% of the on road price of the car


The vehicle purchased out of the loan is the primary security against such loan provided by the Bank. The bank is entitled to have a hypothecation charge on the vehicle.

Apart from the above, the borrower may also have to provide a third party guarantee if needed as per the guidelines of the bank. Such extra guarantee will be at the discretion of the bank and vary on case to case basis.

Processing fees

The Bank has given the benefit of full waiver of processing charges and inspection charges that are usually levied at the time of sanction of loan. This gives PSB Car Loan an edge over other similar products available in the market. 

Part payment or Foreclosure Charges

PSB does not levy any charge on prepayment of loan in case of individual borrowers. However, in case of corporate borrowers, such charges are 1% of the outstanding amount of loan.

Factors that Influence Car Loan Interest Rates at Punjab Sind Bank

The various factors that influence the interest rates on your car loan from the bank are:

Credit Score of the applicant

An applicant with higher credit score will get a reduced rate of interest as compared to an applicant with lower credit score which makes it a high risk applicant.

Repaying capacity of the applicant

The repaying capacity of the applicant is crucial in determining not only his/her eligibility but also the applicable rate of interest. A person with sound repaying capacity will get the benefit of a lower interest rate.

Loan amount

A lower loan amount reduces the risk of default on part of the borrower and hence attracts lower interest rates.

Type of interest rate (whether Floating rate or Fixed rate)

Fixed rates of interest are generally 1% or 2 % higher than floating rates of interest. Hence, an applicant has to check whether the loan is offered on fixed rate or floating rate. If floating rate is available with the lender, it is considered to be a better option in majority cases.


The inflation of any country is directly proportional to the floating interest rate. Hence higher inflation will result in an increased rate of interest.

Repayment period

The repayment tenure is the time period in which the loan taken has to be repaid. A shorter tenure may reduce the risk of default if the loan amount is lower. However, if the loan amount is higher and tenure is lower, it will imply higher monthly installments which may also be termed high risk attracting higher interest.

Type of vehicle

A loan for new cars is typically at a lower interest rate as compared to a loan for a used car.

Margin money

The margin money is a mandatory requirement as per the guidelines of the majority of lenders. If the borrower agrees to pay higher margin money than the minimum requirement, it will eventually reduce the loan amount required thereby reducing the interest rate.

Who is Eligible for PSB Apna Vahan Loan?

The customers can apply for a loan under this scheme for a two wheeler as well as a four wheeler. The Bank has specified the eligible applicants for this scheme. They include the individuals and business entities. The business entity can be either corporate or non corporate entities.

Punjab and Sind Bank, also known as PSB, has also set an age criterion for being eligible for the bank’s car loan. The age limits for this purpose are mentioned below.

Minimum Age

Maximum Age

18 years

  • For Service Class not receiving pension – 60 years
  • For service class receiving pension – 70 years
  • For other applicants – 70 years

What are the documents needed for PSB Car Loan?

There are many documents that have to be submitted by the applicant along with the application form for the PSB Car Loan. These documents are part of the application process and have to be submitted mandatorily along with the duly filled application form. Such documents are related to the car to be purchased out of the loan as well as basic KYC documents. The details of such documents are mentioned below.

Identity Proof of the Applicant

Address Proof of the Applicant

  • Aadhaar Card
  • Passport
  • Voter Id
  • Latest Utility Bills
  • Bank Statement
  • Municipal Tax Payment Receipt
  • Registered Rent/ Lease Agreement/ Sale Deed

Car related Documents

  • Proforma Invoice of the Car
  • RC Copy of the Car
  • Insurance Copy of the Car
  • Recent Photographs

What is the application process of PSB Car Loan?

PSB Car Loans can be easily availed through online or offline modes. The offline application can be through the nearest branch of the bank. The applicant can contact the branch to get the application form and information of the documents to be submitted or the charges for such application.

The online application process for the car loan of the bank is through the mobile application of the Bank. Customers can login to the mobile application and then apply for the loan. The representatives of the bank will follow such request by contacting the applicant regarding the further formalities for car loan.

FAQs – Punjab and Sind Bank – Car Loan Interest Rates

1. What should be the age of vehicles for used car loans of the bank?

The bank requires the used cars to be not older than 4 years to be eligible for a PSB Car Loan.

2. What is the part payment charge levied on PSB Car Loan?

The bank does not charge any part payment or foreclosure charges for individual borrowers. Corporate borrowers, however, have to pay 1% of the outstanding loan amount as part payment or foreclosure charges.

3. Is a guarantee for car loans a mandatory requirement of the bank?

No. Providing a suitable guarantee is not a mandatory requirement of the bank. The bank may demand such guarantee at its discretion depending on case to case basis.

4. When can a person apply for the car loan?

A person can apply for the car loan of the bank when he/she turns 18 years of age.

5. Is processing charge levied on PSB Car Loans?

No. The bank has given the benefit of full waiver of processing charges to its borrowers.

6. What is the minimum margin money for new car loans of the bank?

The bank requires a borrower to provide 15% of the value of the car as margin money for new car loans. An existing borrower is exempted from providing any margin money as per the policies of the bank.

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