PNB Car Loans

Punjab National Bank, or PNB, is one of the largest public-sector banks in India. The bank was founded in 1894 and has its headquarters in Delhi. Punjab National Bank has an extensive network of 7000 branches, more than ten thousand ATMs across 764 cities, and over 110 million customers. Such a vast network of branch offices is impressive and speaks of the bank’s position in the banking industry.

In addition to this, PNB has a significant international footprint. It has a subsidiary in the UK with seven branches, as well as other branches in cities like Hong Kong, Dubai, Kowloon, and Kabul. The bank also has representative offices in Almaty, Dubai, Shanghai, Oslo, and Sydney. It also owns 51% of shares of Druk PNB in Bhutan, which has five branches.

PNB offers a wide range of products and services to its customers, including credit cards, savings accounts, fixed deposits, home loans, mortgage loans, personal loans, vehicle loans, and gold loans. 

Millions of Indian millennials today are on the move and require a means of transport that won’t hinder their rapid progress. In 2019, many Indians already possess a car that helps support their lifestyle, as cars have become very important in the lives of Indians in today’s age, becoming a necessity rather than an indulgence. Yet, so many Indians still aspire to own their own cars but don’t have the financial means to do so.

PNB comes to the heed of these people and offers affordable car loan deals to help customers buy their dream vehicles. The loan tenures are optimally designed, and the loan amount depends on the on-road cost of the vehicle. If you can't afford to keep paying, you could even transfer the loan to someone else!

mymoneykarma provides you with all the information that you need about PNB car loans.

Features of PNB Car Loans

PNB car loans have a host of benefits and features that are customized for PNB customers, as given below.

1. Attractive rates of interest under various car loan schemes.

2. Hassle-free loan processing and quick disbursal of loans.

3. Flexibility in choosing the time of EMI payment

4. Affordable and sustainable car loan EMIs.

5. Minimal processing charges as compared to other banks

6. Loan amounts that cover up to 100% of the on-road prices of select cars.

7. Long loan tenures, of up to 7 years.

8. Salary account holders and other account holders of PNB get exclusive discounts on loan interest rates.

9. Minimal loan processing charges.

PNB Car Loan Interest Rates

PNB offers affordable rates of interest on its car loans. The interest rates are set between 8.85% – 17.50% per annum.

Here is a summary of all the necessary information on PNB car loans.

Interest Rate	8.85% – 17.50%
Minimum Loan Amount	Rs 2 lakhs
Maximum Loan Amount	Upto 100% of the on-road price of the vehicle for some schemes, upto Rs 3 crores.
Minimum Repayment Tenure	1 year
Maximum Repayment Tenure	7 years

Fees and Charges Associated with PNB Car Loan

Here is a list of charges associated with PNB car loans.

Loan Processing Charges	0.4% - 1.5% of the loan amount
Foreclosure Charges	3% - 6% of the outstanding loan amount + GST
Documentation Charges	Rs 630
Prepayment or Part-payment Charges	3% - 5% of the loan amount + GST
Loan Cancellation / Re-booking	nil
Charges for Late Payment of Loan Amount	2% of the outstanding amount
Stamp Duty & other Statutory Charges	As applicable by state laws
Legal, Repossession & Incidental charges	As actuals
Duplicate Statement Issuance Charges	Rs 250
Loan Rescheduling Charges/ Rebooking Charges	Rs 1,000
Duplicate No Dues Certificate / NOC	Rs 500
Collateral Charges	RS 475

PNB Car Loan EMI Calculator

PNB website provides an EMI calculator for its car loans. Applicants can use it to check the tentative amounts that they would have to pay as loan EMIs. The EMI calculator depends on the following factors.

1. Interest rate

2. Loan amount

3. Loan tenure

4. Existing relationship with the bank

5. Current price of the car

EMI Calculator Example

Arjun wants to gift a new car to his father on the eve of his 60th birthday. He approaches PNB to avail a car loan under the PNB New Car Loan Scheme. He wants to buy a Ford Figo, whose on-road price is Rs 4.5 lakhs.

He receives a loan of Rs 4.5 lakhs with a loan tenure of 5 years at an interest rate of 10% per annum. Using the car loan EMI calculator, Arjun’s EMIs amount to a nominal amount of Rs. 9,561 per month.

Documentation Required For PNB Car Loans

The documents required for PNB car loans are different for different customers, based on their occupation. Mymoneykarma gives you the list of essential documentation for each occupational category.

Salaried Customers

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Salary slips for the last three months.

4. Copies of Form 16 for the last two years.

Self-employed Customers/ Businesspeople

1. Copies of PAN card and Aadhaar card.

2. Copies of residence proof, such as electricity bills, rental agreements, property taxes, or telephone bills.

3. Copies of ITR forms for the last two years.

4. Copies of Shop & Establishment Act Certificate.

5. Copies of sales tax certificate for the last two years.

6. Audited balance sheet of the business for the last two years.

How to Apply For PNB Car Loans

The PNB car loan application process is pretty simple. There are two different ways to avail a car loan from PNB.

1. Online registration:  Customers can visit the PNB website and download the PNB car loan application form. They need to fill it in and upload the required documents. Upon approval of the loan, the loan amount is deposited to the applicant’s account.

2. Walk-in: Customers can also visit the nearest PNB branch and request for a PNB car loan application form. They must also submit copies of required documents along with the filled-in application form. The loan is then processed and approved in a few working days.

PNB Car Loan Schemes

PNB offers two types of car loan schemes to its customers. The highlights of each scheme are given below.

PNB New Car Loan Scheme

PNB offers this loan scheme to its customers for buying new cars. Here are a few features of the PNB New Car Loan Scheme.

1. The loan can be used to buy new passenger cars, sport utility vehicles (SUV), or multi utility vehicles (MUV).

2. The car loan covers up to 100% of the on-road price of the new car, for select models, up to Rs 3 crores.

3. The facility of step-up EMIs that allow lower EMIs in the first two years and a higher EMI only from the third year.

4. The facility of Balloon EMIs, which allow lower EMIs for the entire loan tenure except the last year, and a lump sum contribution (balloon) in the last year of the tenure.

5. No foreclosure charges on availing the Balloon EMI facility.

6. Complimentary insurance benefits through the Suraksha Kawach program, such as accidental hospitalization insurance of Rs 1 lakh, permanent total disability insurance cover of Rs 5 lakhs, and personal accident death insurance cover of Rs 5 lakhs.

7. The facility of a top-up loan with minimal documentation.

8. Flexible loan tenures, of 12-84 months.

9. Nominal interest rates, of 8.85% - 14.51% per annum.

Eligibility for PNB New Car Loan Scheme

1. Must be a salaried employee, self-employed individual, or business person

2. Must have a decent credit score

3. An age range of 21-60 years for salaried customers.

4. An age range of 21-65 years for self-employed customers or businesspeople.

5. Minimum income of Rs 3 lakhs per year for salaried individuals

6. Minimum income of Rs 3 lakhs per year for self-employed individuals or business people 

7. Minimum work experience of 2 years, and 1 year of work experience with current employer, for salaried customers.

8. Minimum work experience of 2 years for self-employed customers or businesspeople.

PNB Pre-Owned Car Loan

PNB offers pre-owned car loan schemes to customers who want to buy certified pre-owned cars. The purchase of the cars should be from trusted dealerships such as Honda's Auto Terrace, Hyundai’s H-Promise, Maruti TrueValue, Tata’s Assured, and Mahindra’s First Choice. The highlights of PNB Pre-Owned Car Loan Scheme are given below.

1. The loan can be used to buy any kind of pre-owned passenger car, SUV, or MUV.

2. The minimum loan amount is Rs 1 lakh, and the maximum loan amount covers up to 85% of the on-road price of all car models.

3. The maximum age of the pre-owned car can be 4 years.

4. The rate of interest on loans under this scheme ranges from 10.5% - 17.5% per annum.

5. Transparency in loan processing proceedings.

Eligibility for PNB Pre-Owned Car Loan Scheme

1. An age range of 21-60 years for salaried customers.

2. An age range of 25-65 years for self-employed customers or businesspeople.

3. Must be a salaried employee, self-employed individual, or business person.

4. Must have a decent credit score

5. Minimum income of Rs 2.5 lakhs per year for salaried individuals

6. For businesspeople, a minimum income of Rs 2.5 lakhs per year for selected models, and Rs 2 lakhs per annum on all other models.

7. Minimum work experience of 2 years, with a minimum of 1 year experience with the current employer, for salaried customers.

8. Minimum work experience of 3 years for self-employed customers or businesspeople.

Frequently Asked Questions

Q: What credit score is needed for a PNB car loan?

A: Generally PNB Bank requires a minimum credit score of 700. If your credit score is less than 700, your loan application will most likely get rejected.

Q: Can I avail PNB Car Loan for buying a pre-owned car?

A: Yes, PNB provides car loans for buying used cars under its Pre-Owned Car Loan Scheme.

Q: Why has my PNB car loan application been rejected?

A: For a PNB car loan to be approved, applicants need to meet all the eligibility criteria and upload the required updated documentation within the given time. The applicant should also have a decent credit score,  a good debt-to-income ratio, and no history of defaulted EMI payments in the past. 

Q: What happens if I miss paying an EMI for PNB car loans?

A: It is better to pay the PNB car loan EMIs on time, as PNB charges a hefty penalty fee, of 2% of the outstanding loan amount.

Q: What is the processing charge for PNB car loans?

A: PNB car loan processing fees vary for different loan schemes, ranging from 0.4% to 1.5% of the outstanding loan amount, plus service taxes.

Q: I have recently graduated and am on my first job. Can I get an PNB car loan?

A: Salaried customers must meet the age range of 21-60 years to be eligible for PNB car loans.