How to get PNB Car Loan? Buy your Dream Car in 2023

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PNB Car Loan offers you to purchase a new car, van, jeep, multi-utility vehicle (MUV), or sports utility vehicle (SUV). You can also purchase an old car, which is not older than three years and unencumbered (i.e., not financed by other banks or financial institutions on the date of the loan). Almost all banks, including Punjab National Bank, reimburse the cost of new cars, vans, jeeps, multi-utility vehicles (MUVs), or sports utility vehicles (SUVs) purchased by an individual or corporate out of their own funds. This reimbursement is allowed only up to 3 months after the purchase of a car.


>> Any Individual can take a car loan for private use.
Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children. However, out of these only one joint borrower shall be permitted. Further, in the case of joint borrowers, an option is got exercised to specify the name of the applicant borrower in whose name they want to get the vehicle registered.

>> Company /Firm/Borrowing Unit which are in cash profit for the last two years also eligible to take Car loan from Punjab National Bank.

PNB Car Loan –

Reimbursement of the cost of new cars

Let us understand who can avail of the reimbursement facility of a loan from the bank:

> Existing customer of Punjab National Bank, with satisfactory track record viz. all loan accounts running regular.

> Purchased the car out of own fund. For this purpose, documentary evidence of payment made from own sources viz. statement of a/c or any other document and independent verification of invoice from a dealer is to be produced to the bank.

> Invoice date of the vehicle is not more than 3 months old.

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Minimum Income for PNB Car loan

The minimum net monthly salary/pension/ income for PNB Car loan is Rs. 25000/- (Rupees Twenty Five Thousand Only). If you give 110% of liquid security in the shape of a fixed deposit to the bank, then a minimum monthly income or income proof is not required.

Loan Amount for PNB Car Loan

> For individuals/proprietary concerns a maximum of Rs.100 lakhs or 25 times of Net Monthly Income can be availed as a Car loan.

> Business Concerns: Need-based loans can be availed from banks. There is no ceiling limit for loan amounts for business persons.

Margin Amount

> For new vehicle: 15% of on-road price inclusive of one-time road tax & insurance. That means (Ex-showroom price + One-time Road tax + One year Insurance) x 85%

> For old vehicles: 25% of the value of the vehicle. Valuation of old vehicles is to be done at the current invoice price of the new vehicle less depreciation @ 15% p.a. on a straight-line method. Proportionate depreciation for any part of the year is to be arrived at/ calculated on a quarterly basis.

> For Reimbursement of cost of new cars: 25% on On-Road Price.

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Repayment Period

Type of Car loanLoan Time Period
For loan against New Car84 equated monthly installments
For loan against Old Car60 equated monthly installments
For loan against New Car in case of persons engaged in agriculture & allied activities7 years (new vehicles) or 5 years (old vehicles).
PNB Car Loan repayment table

Permissible deduction

If your Gross Monthly Income up to Rs. 50000/- the maximum permissible deduction of Gross Monthly Income is 50%

If your Gross Monthly Income is above Rs. 50000/- the maximum permissible deduction of Gross Monthly Income is 60%

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Documents Required for PNB Car loan

  1. Application form that is available from the bank or you can also download it from here. PNB Car loan application form
  2. Recent Two passport size photographs
  3. Recent KYC Documents like PAN Card, Aadhar Card
  4. Latest Utility bills like electricity bills, gas bills, postpaid mobile bills, landline bill,s etc.
  5. Last 3 years ITR
  6. Car Quotation (Proforma Invoice) duly attested by customer.
  7. If any person has an income of less than 50000/-per month, then a guarantor is required to avail a PNB Car Loan.

PNB Car loan Interest Rate 2023

For Loan against New Car the rate of interest are as under (as of March 2023)

Customer TypeCIBIL ScoreROI for E-vehiclesROI for Other Vehicles
WomenIrrespective of CIBIL Score8.90%8.95%
Other Individual750 & above8.90%8.95%
700 & up to 7499.35%9.40%
650 & up to 7009.70%9.75%

For Loan against Old Car the rate of interest are as under (as of March 2023)

Customer TypeCIBIL ScoreROI for Other Vehicles
WomenIrrespective of CIBIL Score9.95%
Other Individual750 & above9.95%
700 & up to 74910.40%
650 & up to 70010.75%

Loan Charges


Upfront fees & Documentation Charges: 0.25% of the Loan amount (Minimum – Rs. 1000/- Maximum Rs. 1500/-) excluding GST.

Note: Up to 31st March 2023, all types of charges except CIBIL are waived under PNB Festival Bonanza Offer.

Thanking Note

This is how you can avail Car loan from Punjab National Bank. You can also find the process of Car Loan from other banks in our upcoming articles. For this, please don’t forget to bookmark our website or blog page. Here you’ll find finance-related articles. We will update the articles as updated by the related banks. Also, we write a daily single article for you, so our article will help in daily banking operations. You can also subscribe to our YouTube Channel Bankpedia and follow us on Instagram. We would be grateful to you if you shared this article with your loved ones.


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