Buying a car is a dream for many people and a necessity for others. Punjab National Bank (PNB), one of India’s most trusted public sector banks, offers car loans with attractive interest rates and flexible repayment options to help you purchase your dream vehicle with ease.
Whether you want to buy a brand-new car, a used car, or even an electric vehicle, PNB has loan schemes designed to meet various customer needs.
This detailed guide covers PNB Car Loan features, eligibility, documents required, EMI calculations, application process, and frequently asked questions to help you make an informed decision.
Key Features of PNB Car Loan
PNB Car Loan is designed to make vehicle financing simple and affordable. Here are its main highlights:
Loan Amount: Finance up to 90% of the car’s on-road price.
Interest Rate: Competitive rates starting from 8.70% per annum (subject to eligibility).
Repayment Tenure: Flexible repayment period of up to 7 years (84 months).
Processing Speed: Quick approval with minimal paperwork.
No Prepayment Charges: After 6 months, you can prepay the loan without penalties.
Applicable for All Types of Vehicles: Covers new cars, used cars, and electric vehicles.
Special Discounts: Lower interest rates for existing PNB account holders or salary account customers.
Wide Eligibility: Available for salaried individuals, self-employed professionals, and even agriculturists.
PNB Car Loan Interest Rates (2025)
Type of Applicant Interest Rate (Per Annum)
Salaried Employees 8.70% – 9.50%
Self-Employed Professionals 8.80% – 9.60%
PNB Salary Account Holders 8.50% onwards
Used/Pre-Owned Cars 9.90% onwards
Electric Vehicles (EVs) 8.40% onwards
Note: Rates are indicative and may vary based on applicant profile, CIBIL score, and market conditions.
Eligibility Criteria for PNB Car Loan
To qualify for a PNB car loan, applicants must meet the following conditions:
- Age Limit:
Minimum: 21 years
Maximum: 60 years at the time of loan maturity
- Income Requirements:
Salaried: Minimum monthly income of ₹15,000 to ₹20,000 (may vary by city or region).
Self-employed: Minimum annual income of ₹2,00,000.
- Employment Stability:
Salaried individuals must have at least 1 year of continuous employment.
Self-employed individuals must have at least 2 years in their current business or profession.
- Credit Score:
A CIBIL score of 700 or above is recommended for faster approval and better interest rates.
Documents Required for PNB Car Loan
- Identity Proof (any one)
Aadhaar Card
Passport
Voter ID
PAN Card
Driving License
- Address Proof (any one)
Aadhaar Card
Utility Bills (Electricity, Water, or Gas Bill)
Passport
Rent Agreement
- Income Proof
Salaried: Latest 3 months’ salary slips and Form 16 or Income Tax Returns (ITR).
Self-employed: Previous 2 years’ ITR, audited financial statements, and bank statements.
- Vehicle Details
Proforma invoice of the vehicle from the dealer.
- Other Documents
Passport-sized photographs
Completed loan application form
PNB Car Loan EMI Calculation
EMI Formula:
EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N-1}
Where:
P = Principal loan amount
R = Monthly interest rate (Annual Rate ÷ 12)
N = Loan tenure in months
Example:
Loan Amount = ₹7,00,000
Interest Rate = 8.70% per annum (0.00725 monthly)
Tenure = 5 years (60 months)
EMI = ₹14,460 approx
Tip: Use an EMI calculator to estimate your monthly payments easily.
How to Apply for a PNB Car Loan
- Online Application
Visit the official PNB portal and go to the car loan section.
Fill out the application form with details like personal information, income, and vehicle details.
Upload scanned copies of required documents.
A bank representative will reach out for verification and processing.
- Offline Application
Visit your nearest PNB branch with necessary documents.
Collect and fill the car loan application form.
Submit documents for verification.
After approval, the loan will be disbursed directly to the dealer.
Tips for Faster Loan Approval
Maintain a good CIBIL score above 700.
Choose a loan amount that matches your repayment capacity.
Submit accurate and complete documents to avoid delays.
If possible, apply as an existing PNB customer to get preferential rates.
Opt for a co-applicant (spouse or parent) to increase your eligibility.
Why Choose PNB for Your Car Loan?
Transparent process with no hidden charges.
Special discounts for electric vehicle financing.
Flexible repayment tenure to suit your budget.
Reliable and trusted government-backed institution.
Easy balance transfer option for existing car loans.
Conclusion
The PNB Car Loan is an excellent choice for anyone planning to purchase a car, thanks to its low interest rates, quick processing, and flexible terms. With simple eligibility requirements and minimal paperwork, PNB makes it easy for salaried individuals, self-employed professionals, and farmers to fulfill their dream of owning a vehicle.
Plan your purchase wisely by calculating your EMI, preparing the necessary documents, and applying through your preferred method.
FAQs on PNB Car Loan
Q1. What is the maximum repayment tenure for PNB car loans?
The maximum tenure is 7 years (84 months).
Q2. Can I get a car loan for a second-hand vehicle?
Yes, PNB offers financing for used cars, but the interest rate may be slightly higher.
Q3. How much of the car’s cost does PNB finance?
PNB finances up to 90% of the on-road price of the vehicle.
Q4. What is the minimum credit score required for PNB car loan approval?
A CIBIL score of 700 or above is ideal for smooth approval.
Q5. Is there any prepayment penalty on PNB car loans?
No, there are no prepayment charges after 6 months from loan disbursement.
Q6. Can farmers or agriculturists apply for a PNB car loan?
Yes, PNB also provides car loans to agriculturists meeting the eligibility criteria.
Q7. How soon can I expect loan approval after applying?
Approval generally takes 2 to 5 working days, depending on documentation and verification.
Q8. Are electric vehicles covered under PNB car loans?
Yes, PNB offers special interest rates for electric vehicles (EVs).
Q9. Can I add a co-applicant to increase loan eligibility?
Yes, adding a co-applicant such as a spouse or parent can enhance eligibility.
Q10. Do I need to provide collateral for a PNB car loan?
No, the vehicle itself serves as the security for the loan.
Q11. Can I transfer my existing car loan to PNB?
Yes, PNB allows balance transfer of car loans from other banks or lenders.
Q12. What are the processing fees for PNB car loans?
Processing fees vary but are generally around 0.50% of the loan amount.
Q13. Does PNB offer pre-approved car loans?
Yes, selected PNB customers may receive pre-approved loan offers.
Q14. Is there a minimum income requirement for salaried applicants?
Yes, the minimum monthly income is usually ₹15,000 to ₹20,000, depending on location.
Q15. What happens if I miss an EMI payment?
Missing an EMI may lead to penalty charges and affect your credit score.
Q16. Can I apply for a PNB car loan jointly with my spouse?
Yes, joint applications are allowed and often increase the approved loan amount.
Q17. Is there a different rate for luxury cars?
Luxury or premium cars may have slightly different terms and higher interest rates.
Q18. Does PNB provide car loans to non-resident Indians (NRIs)?
Currently, PNB car loans are primarily for resident Indians.
Q19. Can I apply for a PNB car loan without visiting the branch?
Yes, you can complete the application process online for added convenience.
Q20. How is the EMI deducted each month?
EMIs are usually auto-debited from your PNB account or any linked bank account.
