PNB Car Loan Types with Interest Rate & FAQs 2024
By Anupama Deshpande | April 30, 2024
Having your own car is one of your big dreams. Driving your own car gives you the freedom to go anywhere you like at per your own wish. Thanks to Car Loans offered by most of the banks and NBFCs in India to make your dream of owning a car true.
You can avail a Car Loan to buy a brand-new car or a used car of your preferred brand. Banks usually offer loan up to 90% of the car's on-road price and remaining 10% amount have to be paid by you which is known as 'Down Payment'.
Punjab National Bank (PNB) offers a car loan to its customers at an affordable interest rate starting from 8.75% for a tenure ranging from 12 months to 120 months depending up on the type of car loan they are availing. PNB offers following types of Car Loans to the customers,
PNB Car Loan Types
PNB offers following different types of car loans to its customers,
| Type of PNB Car Loan | Purpose |
|---|---|
| PNB Car Loan | Regular Car Loan to buy a Car |
| PNB Insta Vehicle Loan | Car loan to existing home loan borrowers |
| PNB Green Car (E-Vehicle) Loan | Car loan for purchase of new Electrical Car (e-Vehicle) |
| PNB Digi Car Loan | Regular Car Loan applied "Online" |
| PNB Pride Car Loan | Car Loan to Government Employees to purchase of car |
| PNB Combo Car Loan | Car loan to new & existing home loan borrowers |
| PNB Used Car Loan | Car Loan to buy a used Car |
PNB Car Loan
| PNB Car Loan | Details |
|---|---|
| Purpose |
|
| Car Type | New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV) |
| Eligibility Criteria |
|
| Loan Amount |
|
| Repayment Period | Maximum 84 months |
| Interest Rate |
|
| Processing Fees | 0.25% of Loan amount (Minimum Rs.1000 & Maximum Rs.1500) |
| Documentation Charges | NIL |
Use Car Loan calculator to calculate the EMI and interest on your car loan.
PNB Insta Vehicle Loan
| PNB Insta Vehicle Loan | Details |
|---|---|
| Purpose | To offer car loan to existing home loan borrowers. No pre-sanction/ Fresh Income proof required |
| Insurance | Vehicle to be comprehensively insured and cost to be borne by borrower |
| Eligibility Criteria | All existing home loan borrower accounts where the loan has run for minimum 3 years without a single default in EMI. |
| Loan Amount | 90% of on-road price of Car/ two wheeler, Maximum Rs. 10 lakhs |
| Repayment Period | Maximum 100 months |
| Interest Rate |
|
| Processing Fees | Flat Rs.1000 |
| Documentation Charges | NIL |
PNB Green Car (E-Vehicle) Loan
| PNB Green Car (E-Vehicle) Loan | Details |
|---|---|
| Purpose |
|
| Eligibility Criteria | Minimum net monthly salary/ pension/ income should be Rs.25000 |
| Loan Amount |
|
| Repayment Period | Maximum in 120 equated monthly installments |
| Interest Rate |
|
| Margin |
|
| Processing Fees | 0.25% of Loan amount (Minimum Rs.1000 & Maximum Rs.1500) |
| Documentation Charges | NIL |
Note that in case of Corporate Borrower, the car loan is offered to business concerns for personal use of their executives i.e. other than for use in business.
PNB Digi Car Loan
| PNB Digi Car Loan | Details |
|---|---|
| Purpose | Online applying & sanctioning of car loan with paperless assessment. Easiest & effortless method to apply online any time from anywhere |
| Eligibility Criteria | Minimum net monthly salary/ pension/ income should be Rs.25000 |
| Loan Amount | Finance is available up to 90% of on-road price |
| Repayment Period | Maximum in 120 equated monthly installments |
| Interest Rate |
|
| Processing fee & Documentation charges | NIL |
Use Car Loan calculator to calculate the EMI and interest on your car loan.
PNB Combo Car Loan
| PNB Combo Car Loan | Details |
|---|---|
| Purpose | To provide Car Loan at concessional Rate of Interest to new as well as existing home loan borrowers. Only Brand New 4 Wheelers will be financed |
| Margin | 10% of the on-road price of the car |
| Eligibility Criteria |
|
| Loan Amount | Up to 90% of on-road price of the car |
| Repayment Period | Less than or equal to left over repayment period of home loan subject to maximum repayment period of 84 months |
| Interest Rate |
|
| Additional Security Required | Car Loan will be secured through extension of Mortgage on the Existing Housing Loan Property |
| Processing fee & Documentation charges | NIL |
PNB Pride Car Loan
| PNB Pride Car Loan | Details |
|---|---|
| Purpose | Car Loan for purchase of car to Government Employees at concessional rate of interest & irrespective of their credit score |
| Eligibility Criteria | All Central/ State Government Employees/ Defence personnel/ Para military Forces & Pensioners of Central & State Government |
| Repayment Period | Maximum repayment period of 84 months |
| Interest Rate |
|
| Processing fee & Documentation charges | NIL |
PNB Used Car Loan
| PNB Used Car Loan | Details |
|---|---|
| Purpose | Loan for purchase of old car/van/jeep/MUV/SUV which are not older than 3 years and unencumbered |
| Margin | 30% of the value of the vehicle |
| Repayment Period | Maximum repayment period of 60 months. Repayment to be ensured within 70 years for salaried persons with pension and pensioners. For others repayment to be ensures within 65 years of age |
| Interest Rate |
|
| Additional Security Required | Car Loan will be secured through extension of Mortgage on the Existing Housing Loan Property |
| Processing Fees | 0.25% of Loan amount (Minimum Rs.1000 & Maximum Rs.1500) |
| Documentation Charges | NIL |
Note that in case of Corporate Borrower, the car loan is offered to business concerns for personal use of their executives i.e. other than for use in business.
Margin: PNB Car Loan
- For New Car: 10% for purchase of car from Maruti, Tata Motors, Hyundai, Honda Siel, Mahindra & Mahindra, ICML & Force Motors Ltd. with whom PNB has a tie-up arrangement
- For New Car: 15% for purchase of car of other make/companies (not listed above)
- For old Vehicles: 25% to 30%
- For reimbursement of cost of new vehicle purchased by individual/ corporate out of own funds: 25% of on-road price
Security
Car purchased out of loan amount needs to be hypothecated to PNB.
Guarantee/ Collateral Security
Third party guarantee/ collateral security which is required for PNB Car Loan is outlined below:
- Guarantee acceptable to the Bank in case of Gross Monthly salary is less than Rs.50000
- No guarantee required for permanent employees of Central Govt./ State Govt./ PSBs/MNCs/ Listed companies of BSE or NSC whose shares are actively traded and quoted above par irrespective of income
- For all other cases Third Party guarantee/ Collateral Security acceptable to PNB
Prepayment Charges
| PNB Car Loan | Details |
|---|---|
| Floating Rate Car Loan | Nil |
| Fixed Rate Car Loan | 2% on the outstanding prepaid amount. However, no prepayment charges to be levied if the loans are prepaid by the borrowers from their own sources |
Documents Required
The applicant needs to keep following documents/information handy while applying for the car loan from PNB.
- Aadhaar Card
- PAN Card
- Income Proof such as ITR, Form 16
- Proof of Address
- Salary/Operative Account details
- Car quotation/invoice
- Proof of advance/booking payment
- Insurance quotation/invoice, if insurance is self arranged by the customer
PNB Car Loan FAQs
Who is eligible to get a PNB car loan?
Individuals, corporate and non-corporate businesses are eligible to get a PNB car loan. Note that in case of Corporate Borrower, the car loan is offered to business concerns for personal use of their executives i.e. other than for use in business.
What are the benefits of a car loan?
- Higher loan amount up to 90% of the on-road price of the car
- No need to liquidate your existing investments
- Competitive interest rates
- Simple documentation
- Flexible repayment tenure
What is on-road price of a new car?
The on-road price of a new car includes the ex-showroom price, Regional Transport Office (RTO) registration charges, insurance costs, road tax, etc.
What is ex-showroom price of a new car?
Car's Ex-Showroom price is the cost of the car without including the additional charges such as the RTO (Regional Transport Office) registration, insurance and road tax. The ex-showroom price is always lower than the on-road price.
Can I get a loan from PNB to purchase a used car?
Yes. Used car is offered by PNB for the cars which are not older than 3 years. Note that the interest rate for old car loan will be different from that of a new car.
What are the documentation charges on PNB car loan?
PNB does not levy any documentation charges on the car loan.
What does unencumbered car mean?
Unencumbered car means that the car should not be financed by other bank/financial institutions on the date of loan.
Can I negotiate on interest rates while taking PNB car loan?
Yes, you can negotiate on interest rate with PNB, if you carry a high credit score, good loan repayment history and a decent prior relationship with PNB.
What are the different brands of cars for which PNB car loan can be availed?
PNB offers car loans for Car, Van, Jeep, Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV).
What security needs to be provided foe a PNB car loan?
The car being purchased out of the PNB car loan serves as hypothecation.
Is there any tax benefits of a car loan?
No. Unlike a home loan, a car loan does not have any tax benefit.
Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.