PNB Car Loan Interest Rates
Updated on: Apr 21st, 2025
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3 min read
Punjab National Bank (PNB) offers different car loan schemes to cater to retail and commercial customers. There are separate schemes for government employees and existing home loan customers. Also, the bank offers an option where you can apply for both a home loan and a car loan through a single scheme.
Read on to know more about the car loan schemes offered by PNB and related details.
Types of car loan schemes of PNB
| Insta Vehicle Loan Scheme for Existing Home Loan Borrowers | This scheme is dedicated to the existing home loan customers of the bank and provides financing to purchase a vehicle for personal use. Get financing up to 90% on-road price of car/two-wheeler up to Rs.10 lakh. |
| PNB Combo Loan Scheme (Home Loan + Car Loan) | You can avail of a home loan and car loan at once under the scheme where the car loan comes at a concessional rate and home loan at lucrative terms and conditions. The maximum repayment period for a car loan is 84 months. |
| PNB Pride Car Loan for Government Employees | Government employees can benefit from this scheme as they get financing to purchase a car on attractive terms. The scheme is open for Central and state government employees, defence personnel, and paramilitary forces. |
| PNB Car Loan | Purchase a new car/jeep/van/multi-utility vehicle/sports utility vehicle under this scheme. You can also purchase a used vehicle not older than three years. |
Interest rates of Punjab National Bank car loans
As of 31 March 2021, the Marginal Cost of Funds Based Lending Rate (MCLR) stands at 7.35% and Repo Linked Lending Rate (RLLR) at 6.80%.
| Scheme/Borrower Type | Interest Rate (New Car) | Interest Rate (Old Car) |
| Women (Floating) | RLLR+0.75% | RLLR+1.75% |
| PNB PRIDE* (Floating) | RLLR+0.75% | RLLR+1.75% |
| Corporates (Floating) | RLLR+0.75% | RLLR+1.75% |
| Loan To Defence/Paramilitary Under Rakshak Plus | RLLR + 0.50% | RLLR + 1.50% |
| Fixed-Rate Option for All Schemes (Including under PNB Pride) | MCLR+0.95% | MCLR+1.95% |
Other Individuals (Floating)
| Internal Credit Score | Interest Rate (New Car) | Interest Rate (Old Car) |
| CIC Score 750 & above | RLLR+0.75% | RLLR+1.75% |
| CIC Score 700 and up to 749 | RLLR+0.90% | RLLR+1.90% |
| CIC Score less than 700 | RLLR+1.00% | RLLR+2.00% |
Features and benefits of PNB car loans
- Individuals can get a loan amount of up to Rs.100 crore to purchase a car.
- Businesses have no limit on the loan amount to get a car.
- The repayment tenure can go up to seven years.
- Up to 90% financing assistance for the on-road price of the car.
- No age limit for the loan in the case of business concerns.
- Competitive interest rates offered based on RLLR and MCLR.
- Nil documentation charges for all car loan schemes.
- No minimum credit score prescribed for borrowers.
Eligibility for PNB car loans
| Insta Vehicle Loan Scheme | All existing home loan borrower accounts where the loan has run for a minimum of 5 years (excluding the moratorium period) without a single default in EMI |
| PNB Combo Loan Scheme | Housing loan borrowers with a sanctioned loan amount of Rs.15 lakh or moreOnly new cars will be eligible under this schemeThe minimum gross income for salaried applicants is Rs.50,000 per monthMinimum annual post-tax income for self-employed professionals and businessmen is Rs.6 lakh as per ITR, i.e. average of the last three years; there should be consistent growth in gross income over this periodTotal deduction from income, i.e. EMI of the existing housing loan + other loans + the proposed EMI of car loan should not exceed 60% of the gross income |
| PNB Pride Car Loan For Government Employees | Permanent employees of Central/State Governments/Defence Personnel and Paramilitary ForcesMinimum monthly salary/pension/income: Rs.25,000Income of parents/spouse/earning children can be added to get eligibility for the schemeNo minimum income criteria apply if the borrower provides 110% liquid security in terms of term deposit |
| PNB Car Loan | Individuals, Joint borrowers, and Non-IndividualsPrivate use onlyMinimum monthly salary/pension/income: Rs.25,000Income of parents/spouse/earning children can be added to get eligibility for the schemeNo minimum income criteria apply if the borrower provides 110% liquid security in terms of term deposit |
Documents required for PNB car loans
- Valid KYC documents
- Voter ID
- Aadhaar Card
- PAN Card
- Any other valid ID/Address Proof
- Income Proof
- Last three years’ ITR for businessmen
- Latest salary slip in the case of salaried person
The bank provides a detailed checklist at specific request from the applicant.
PNB car loan fees and charges
| Car Loan Scheme | Processing Charges | Documentation Charges |
| PNB Car Loan | 0.25% of the loan amount; Minimum–Rs. 1000 and Maximum–Rs.1500 | Nil |
| Insta Vehicle Loan (For Car) | Rs.1000 | Nil |
| PNB Combo Loan Scheme | Nil | Nil |
How to calculate EMI on PNB car loans
Our car loan calculator helps you figure out the monthly instalments you must pay for a specific loan amount to finance your dream car.
Frequently Asked Questions
Are there any benefits under the Insta Vehicle Loan scheme?
There are special benefits available when you get a loan under the Insta Vehicle Loan scheme, as you can get the loan amount disbursed instantly. If you have been repaying the home loan EMIs on time for five years with nil default, you are eligible for a concession of 0.25% on the interest rate applicable.
Is there an age restriction to apply for a car loan?
Yes. The car loan is available only for adults. Also, the age of the salaried borrower can be up to 70 years, and for others, the maximum age is up to 65 years at the time of loan maturity.
What is the margin I can expect to prepare for a car loan?
Generally, the margin for a new car can be up to 15% of the on-road price or 10% of the on-road price if there is a tie-up of the bank with the car dealer or manufacturer. In the case of used vehicles, you can expect up to 25% of the on-road price margin.
Should I provide any guarantee in addition to the car hypothecation?
You need not provide any additional guarantee if your net take-home salary is more than Rs.30,000 per month or if you have an existing home/personal loan and have been paying the instalments on time.
Can I apply for a car loan for reimbursement purposes if I have bought the car with my money?
You can get a reimbursement in the form of a car loan if you have bought the car with your money only if the car purchase invoice is not more than a month old.
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