One of the most popular loan offerings of the bank is the Punjab National Bank car loan. Under these car finance plans, Punjab National Bank extends its financing services for the purchase of four wheelers. This includes the Punjab National Bank car loan for a new car and for the pre-owned car loan. The car finance plans from Punjab National Bank cover an extensive range of four wheelers including foreign and indigenous make Sports Utility Vehicles (SUVs), Multi Utility Vehicles (MUVs), Jeeps, Vans, and Cars. The used car loan is available to finance pre-owned cars that are no older than 3 years from the date of their RTO registration.
The car loan application for Punjab National Bank car loans is accepted from salaried and self-employed individuals, as well as firms and business concerns, as long as they have a minimum annual income of Rs. 200000. The primary applicant also has the option to club the income of their parent or spouse, to increase their car loan amount eligibility. Punjab National Bank offers one of the best car loans in India, where the car loan disbursals can go up to 25 times the applicant’s net monthly salary or Rs. 25 lakhs (whichever is lower). For business concerns and firms, there is no applicable upper limit to their car loan amount eligibility. Car loans offered by Punjab National Bank have a maximum repayment period of 84 months for new cars and 60 months for a used car loan. The bank also routinely offers promotional and festive deals on car loans.
Features of PNB Car Loan
- Punjab National Bank Car Loan can be availed to purchase new and old car/van/jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV).
- Repayment period for new vehicle is 84 months and for old vehicle is 60 months
- No prepayment charges in case of floating interest rate. For fixed interest rate loans prepayment charges @2% on the outstanding pre-paid is charged
- Quantum of finance for individuals and proprietorship concerns is Rs. 100 lac or 25 times of Net Monthly Salary / Pension/ Income, whichever is lower. For Business Concerns (Corporate or Non-Corporate) there is no ceiling amount (for one or more vehicles).
- Income Eligibility: Self-employed and salaried individuals and business firms that draw a minimum monthly income of Rs. 20000 are eligible for a Punjab National Bank car loan. The option to add an immediate family member to the car loan application acts as an incentive in case the monthly income of the primary applicant does not satisfy the income requirements for Punjab National Bank car loan.
- The Principle Amount: For a car loan from Punjab National Bank, individuals can apply for principle amounts up to Rs. 25 lakhs or 25 times their net monthly income, whichever amount happens to be lower. Business firms have no maximum loan amount limit, and in both cases the loan can be used to finance on or more vehicles.
- Funding: For new cars, the Punjab National Bank car loan funds up to 85 % of the ex-showroom price of the car. For used cars the funding can be availed for up to 70 % and up to 90 % under the tie up arrangement.
- Security: Cars that are bought with the Punjab National Bank car loan have to be jointly registered in the name of the borrower and the bank. This implies that until the time the borrower pays off the loan, the vehicle will remain hypothecated to Punjab National Bank. After the repayment of the loan, the borrower can become the sole owner of the vehicle. In certain cases however, PNB may require a collateral or a third party guarantor to indemnify the loan. This clause is relaxed for employees of some listed categories of companies including MNCs, PSUs, state or central government, etc. This is also relaxed for salaried individuals, if the ex-showroom cost of the car exceeds Rs. 6 lakhs.
- Car loan interest rates: The calculation of the Punjab National Bank car loan interest rates is based on the common concept of the base rate system. This rate consists of a variable and a fixed component, where the variable component is known as the base rate and is applicable on all lending products of the bank.