Punjab and Sind Bank Two-Wheeler Loan

Punjab and Sind Bank was established over a 100 years in 1908, by a few visionaries like Sir Sunder Singh Majitha, Bhai Vir Singh, and Sardar Tarlochan Singh to uplift the poor section in the area. The bank started with a nominal capital amount, and it continued to grow over the years maintaining their values and commitment to the society.

The services of the bank have expanded to meet all the financial requirements of customers including ATMs, online banking, mobile banking, internet banking, SMS banking, and loans for various purposes such as the two-wheeler loan.

Eligibility Criteria for Two-Wheeler Loan

• Both salaried individuals and business entities (corporate or non-corporate) are eligible to apply for two-wheeler loans.

• The borrower must be of at least 18 years and the maximum of 65 years to implement.

Features & Benefits of Punjab and Sind Two-Wheeler Loans

1. The two-wheeler finance from Punjab and Sind Bank is applicable for both new and used two-wheelers (not older than five years). The two-wheelers should be used for personal requirement only and must be registered as a private vehicle.

2. The Quantum of Credit for Proprietorship and Individuals: There is no maximum amount set for both new and used two-wheelers. If the applicant applies with the spouse/parents as a co-applicant or guarantor in the loan, then the salaries can be clubbed to get a more substantial amount of credit.

3. There are no maximum limit two-wheelers that you can buy with the loan.

4. If the borrower needs a new or used two wheeler for business concerns (corporate or non-corporate) then here are a few highlights:

• If the applicant is planning to repay within three years: The applicant can borrow twice the average annual cash accruals, i.e., PAT+ Dep. as per the last year balance sheet, P&L account.

• If the borrower is planning to repay between three and five years: The borrower can borrow the average annual cash accruals, i.e., PAT+ Dep. as per the last year balance sheet, P&L account thrice.

5. The margin for new two-wheelers is 10% of the on-road price (excluding the accessories and Insurance).

6. The margin for old two-wheelers is 25%.

7. Guarantee for Individual or Proprietorship cases: If the installment of loan is paid through a salary account, the guarantee may be waived. Otherwise, the applicant will require the assurance of spouse, elder son, or a third-party.

8. Guarantee for Partnership firms: Being a partnership firm, since all the partners would club the documents to have joint liability, the firm will not require a guarantee.

9. The repayment period for new vehicles: Maximum of 84 months.

10. The repayment period for old two-wheelers: Maximum of 60 months. The tenure is subjected to the age of the two-wheeler. The total period of compensation and the maturity of the vehicle should not exceed 84 months.

11. As security, the bank will require the hypothecation of the two-wheeler.

Tenure of Repayment
Service class non-pension	up to 60 yrs
Service class with pension	up to 70 yrs
Others	up to 70 yrs

The applicant will not be levied with prepayment penalty if the applicant pays it before the maturity of the loan tenure. In case if the loan is not paid in the decided mandate, there will be a prepayment penalty of 1% levied on the outstanding balance.

Interest Rates

Category of Two-Wheelers	Rate of Interest (per annum for all tenures)
New	BR (9.75%)+ 0.25% = 10.00%
Old	BR (9.75%)+ 3.00% = 12.75%