Punjab National Bank (PNB) Car Loan
Punjab National Bank (PNB) offers car loans with floating interest rates starting from 7.60% p.a. and tenures of up to seven years for new cars and five years for used cars. Your rate depends on the loan amount, tenure, credit score, and whether you choose a new or pre-owned car. Documentation charges are nil, keeping the loan cost-effective.
The interest rate charged takes into account various factors such as the loan amount, repayment tenure, whether the customer is purchasing a new car or a pre-owned car, and their credit score. Punjab National Bank used car loan can also be availed.
Key Features of PNB Car Loan
Some of the key features of PNB Car Loan are given below:
- Repayment tenure up to 7 years for new cars and 5 years from pre-owned cars.
- Affordable processing fee.
- Affordable rate of interest.
- The margin on the loan is up to 15% of the on-road price of a new car and up to 25% if you are looking to purchase a pre-owned car.
- The margin is 10% if PNB has a tie-up with the manufacturer or dealer.
Punjab National Bank Car Loan Fees & Charges
Charges | New Car Loan | used Car Loan |
Prepayment Charges | Floating rate: Nil Fixed rate: 2% on the outstanding prepaid | Floating rate: Nil Fixed rate: 2% on the outstanding prepaid |
Processing Charges | 0.25% of the loan amount (Rs.1,000 – Rs.1,500) | 0.25% of the loan amount (Rs.1,000 – Rs.1,500) |
Documentation Charges | Nil | Nil |
Punjab National Bank Car Loan Eligibility
Some of the eligibility criteria you will have to fulfil to be eligible for a car loan from Punjab National Bank are given below:
- The car can only be used for private purposes.
- Joint borrowers and individuals can avail the loan.
- Companies and firms with a cash profit over the last two years can avail the loan.
- Existing customers must have a good repayment history
- The minimum monthly income required to be eligible for a PNB car loan is Rs.25,000.
- The loan must be fully repaid by the time you turn 70, if you are a salaried individual or pensioner, or 65, if you fall into any other applicant category.
- For a used car loan, the vehicle being purchased must not be older than three years.
Punjab National Bank Car Loan Interest Rates
New Car
Type of Loan | Interest Rate |
Fixed Rate | 8.60% p.a. - 10.70% p.a. |
Floating Rate | 7.60% p.a. - 9.70% p.a. |
Note: The interest rates are effective from 18 August 2026.
Used Car
Type of Loan | Interest Rate |
Fixed Rate | 10.45% p.a. - 11.55% p.a. |
Floating Rate | 9.45% p.a. - 10.55% p.a. |
Note: The interest rates are effective from 18 August 2026.
Documentation Needed to Apply for a Punjab National Bank Car Loan
The list of documents that must be submitted are mentioned below:
- Signed application form with photograph
- Photo ID and age proof
- Residence proof
- Bank statements of last 6 months
- Documentation for salaried applicants: Last 3 months' salary - slips
- Form 16 or Income Tax Returns
- Documentation for self-employed applicants: Last 3 years' Income Tax Returns with computation of Income and last 3 years' CA Certified / Audited Balance Sheet and Profit & Loss Account
🚗 How to Apply for a PNB Car Loan (2026)?
Offline Application (at the Branch)
- Visit your nearest PNB branch and request a car loan application form.
- Fill in the form with accurate details.
- Submit the form along with the required documents: Identity and address proof (e.g., Aadhaar, PAN, passport) Income proof (salary slips, ITRs, or bank statements) Quotation or invoice of the vehicle Photographs and additional documents, if required
- The bank will verify your documents and assess your eligibility.
- Once approved, the loan will be sanctioned and disbursed to the car dealer or your account.
Online Application (through PNB Website or App)
- Go to the official PNB website or log in to the PNB One app.
- Navigate to the Car Loan or Retail Loans section.
- Fill in the digital application form with personal, employment, and vehicle details.
- Upload scanned copies of the required documents.
- Submit the form for verification.
- After approval, the bank will disburse the loan amount directly.
Summary
A Punjab National Bank (PNB) car loan lets you finance a new or pre-owned car at fixed or floating interest rates, with tenure and margin that vary by vehicle type. You can apply offline at a PNB branch or online through the PNB website or PNB One app. Check the fees, eligibility, and current interest rate tables above before applying for your PNB car loan.
FAQs on Punjab National Bank Car Loan
1.What is a Punjab National Bank (PNB) car loan?
A Punjab National Bank (PNB) car loan is a secured loan that helps you finance the purchase of a new or pre-owned car. PNB offers the loan against hypothecation of the vehicle you buy. Both individuals and eligible businesses can apply for a PNB car loan.
2.What types of vehicles can I finance with a PNB car loan?
A PNB car loan can be used to finance sedans, hatchbacks, jeeps, vans, Sports Utility Vehicles (SUVs), and Multi Utility Vehicles (MUVs). The vehicle must be intended for private use. PNB finances both new and pre-owned cars under this loan.
3.Does PNB offer a car loan for used or pre-owned cars?
Yes, PNB offers a car loan for pre-owned or used cars in addition to new car loans. The margin, tenure, and interest rate applicable to a PNB used car loan differ from those for a new car loan. Refer to the sections above for the current terms.
4.What is the repayment tenure offered on a PNB car loan?
The repayment tenure on a PNB car loan differs for new and pre-owned cars, as set out in the key features section above. A longer tenure lowers your EMI but increases the total interest you pay. You can choose a tenure that suits your repayment capacity.
5.What margin does PNB require on a car loan?
The margin PNB requires on a car loan varies depending on whether you are buying a new or pre-owned car, and whether PNB has a tie-up with the manufacturer or dealer. This margin is the portion of the on-road price you must fund yourself. Refer to the key features section above for the applicable margin.
6.What charges does PNB levy on a car loan?
PNB levies a processing charge and, in some cases, a prepayment charge on a car loan, as listed in the fees and charges table above. These charges can differ for new and used PNB car loans. Check the current charges before applying.
7.Does PNB charge any documentation fee on a car loan?
No, PNB does not levy any documentation charges on a car loan. This applies to both new and used PNB car loans. You can verify the current fee structure in the fees and charges table above.
8.Are there any prepayment charges on a PNB car loan?
PNB does not charge a prepayment fee if you have taken your car loan on a floating interest rate. A prepayment charge applies if you opted for a fixed interest rate, as detailed in the fees and charges table above. Check the applicable charge before making a prepayment.
9.Who is eligible for a PNB car loan?
Individuals, joint borrowers, and eligible businesses with a satisfactory financial track record can apply for a PNB car loan. The vehicle purchased must be for private use only. Existing PNB customers with a good repayment history are preferred.
10.Can companies and firms apply for a PNB car loan?
Yes, companies and firms that meet PNB's eligibility criteria can apply for a car loan. Applicant businesses are generally expected to show a satisfactory financial track record over recent years. Refer to the eligibility section above for the full criteria.
11.What security does PNB take for a car loan?
PNB takes the vehicle being purchased as security for a car loan through hypothecation. This means the vehicle is pledged to PNB until the PNB car loan is repaid in full. No additional collateral is typically required.
12.Is the PNB car loan interest rate fixed or floating?
PNB offers both fixed and floating interest rate options on its car loan. The rate you get depends on factors such as your credit score, loan amount, and whether you are buying a new or pre-owned car. Refer to the interest rates section above for the current rates.
13.What documents are needed to apply for a PNB car loan?
To apply for a PNB car loan, you typically need a signed application form, photo ID and address proof, and recent bank statements. Salaried applicants must submit salary slips and Form 16 or ITRs, while self-employed applicants need income tax returns and audited financial statements. The full document list is available in the documentation section above.
14.How can I apply for a PNB car loan?
You can apply for a PNB car loan either offline at your nearest PNB branch or online through the PNB website or PNB One app. The offline process involves submitting a form with the required documents at the branch. The online process lets you fill in the application and upload documents digitally.
15.Can I apply for a PNB car loan online?
Yes, you can apply for a PNB car loan online through the official PNB website or the PNB One mobile app. You will need to fill in your personal, employment, and vehicle details and upload scanned copies of the required documents. Once verified, PNB disburses the approved loan amount directly.
Latest News on PNB Car Loan
Punjab National Bank introduces ‘PNB NIRMAAN 2025’ that offers interest concessions on car loans.
‘PNB NIRMAAN 2025’, a special retail loan campaign, has been introduced by Punjab National Bank (PNB) that makes car loans more accessible. This initiative offers interest rate concession of 5 basis points and does not charge any fees for documentation and loan processing. Customers can apply for car loans under this special time-bound loan offer online by logging into the PNB website or PNB One mobile app. The campaign can also be availed by the customers from any PNB branches.
Kankana Mukherjee is an engineer and has over 4.5 of experience in content writing. Combining the expertise in financial content writing achieved in her 2 years association with BankBazaar, and a knack for clear and engaging content, Kankana simplifies complex financial concepts and offers practical insights to help readers make informed decisions and achieve financial success. |
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