PNB Car Loan

PNB was founded in 1894 in Lahore, Pakistan and ever since they have opened more than 6,900 branches around the world. Their primary area of expertise is the amalgamations and acquisitions sector. They also have 10,000 ATMs all over the country. 

Their offshore divisions include Asia, Australia and Africa amongst others. They also have subsidiaries in the UK and Bhutan as well. They also have a joint venture in Nepal and an association in Kazakhstan.

They also provide a lot of financial and banking services that cater to 80 million customers around the country and abroad. They also have a presence in the rural banking and agricultural sector as well. With close to 70,000 employees, PNB is one of the largest employers in India’s banking industry. 

About the PNB Car Loan:

Amongst the many loan products provided, the PNB Car Loan is one which is really popular. There has been positive customer feedback amongst those who have already applied for the loan beforehand. Their car loan product is known as the PNB National Bank Car Loan which is also known as PNB car finance. 

The PNB Car Loan extends their loans to a large variety of four-wheelers including jeeps, vans, new cars, MUVs, SUVs and used cars which are not older than 3 years since the RTO registration. They also cover all brands of cars – both Indian and foreign.

Applications for loans from salaried employees and businesses with a monthly net income of Rs. 20,000 is accepted by them. The applicant also has the option to add the income of their parent or spouse for the car loan. To increase the eligibility from a monetary angle, the loan applicant can also include their spouse or parents for the same.

There is no upper limit on the loan amount for businesses applying for the loan. New cars that are taken with the PNB Car Loan scheme, 84 EMIs is the tenure for repayment and 60 months for used cars. 

Why choose the PNB Car Loan?

PNB Car Loans are easy to apply and come with fewer frills. They are offered loans on the purchase of multiple vehicles including hatchbacks, sedans, MUVs, and others. 

As far as the Pnb car loan interest rate is concerned, a system of the base rate added with the fixed component helps in identifying the final interest rate. The current interest rate is heavily dependant on annual Marginal Cost of Funds Based Lending Rate (MCLR). 

The Pnb car loan interest rate for the same extends to around 0.6% to 1.05% depending on the credit score and the scheme selected, and this makes it a low-cost, easy to return car loan. The processing fee is generally around the 1% range for the total loan amount. This amount is sometimes waived during seasonal offers, and the overall tenure too can extend. 

The eligibility for a car loan amount:

There are a few factors that come while applying for a car loan from PNB. If you satisfy any of these criteria, you are eligible:

  • You’re at least 21 years old
  • You’re below 60 years of age
  • Salaried or a self-employed individual with a regular income
  • You earn more than the minimum income required

You can also use the Pnb car loan emi calculator to know exactly how much you need to dish out on an equated period to pay for your loan.

The factors affecting a PNB Car Loan:

There are a few factors also that come into play when you apply for a car loan from PNB. These include:

  • A minimum monthly income of Rs. 20,000
  • Loan that is capped at 85% of the ex-showroom price
  • Other loans in your kitty can lower your eligibility

How to increase your eligibility?

To increase your eligibility for a PNB Car Loan, you have to:

  • Pay off any outstanding credit card amounts
  • Choose a tenure that is longer than 7 years


To know the different documents that come with applying for a car loan, you need:

  • A signed application along with a photograph
  • Photo ID and proof of age
  • Residential Address proof
  • 6 months of your bank statement
  • For salaried applicants, you need:

    Last 3 months’ salary slips
    Form 16 or the latest Income Tax Returns
  • Documentation for those applicants who are self-employed 
  • The 3-years Income Tax returns along with a computation for the same
  • The last 3 years’ CA Certified or the Audience Balance Sheet along with the Profit and Loss account

The Pnb car loan calculator:

Interest Rate – Anywhere between 8.5% to 8.95%

Fees – Waived during the Monsoon Bonanza Offer (Roughly between 1st June to 30th September)

Pre-closure – None

Tenure – Anywhere between from 1 to 7 years

Guarantor – Yes. Required. 

Pre-payment fees: If you wish to apply for the loan with a floating interest rate, there is no additional prepayment fees that need to be paid. An additional fee of 2% the outstanding prepaid amount needs to be paid only if the loan has been taken at a fixed interest rate. 

Prepayments do not have any charges if:

  • The borrower prepays the loan amount using his/her personal resources
  • A change in the overall terms of the sanctioned loan amount
  • The individual uses another bank within 30 days post the upward interest revision

Documentation fees:

Loans generally require a small charge for processing along with the addition to the security inspection or the costs for verification. Banks generally charge 1% of the loan amount until a maximum of Rs. 6,000. This amount is generally waived as part of the seasonal offer.

Also, there are no periodical inspections if the loan is paid back regularly. In this scenario, there are no charges levied. If the loan account under the NPA category receives irregular payments, then the person borrowing has to obtain a PNB 551 every two times a year after regular inspection.

A fine of Rs.1000 needs to be paid along with the GST in this situation.