On April 1, 2020, the Oriental Bank of Commerce and the United Bank of India merged with the Punjab National Bank. After the merger, PNB became the second-largest Indian commercial bank after SBI.
OBC migrated all its customers to PNB's Core Banking Solution (CBS). If you are applying for a car loan from Oriental Bank, you can learn about Oriental Bank car loans and their salient features in this article.
Below are the features and benefits of an Oriental Bank car loan:
Rate of Interest: PNB offers a car loan interest rate starting at 7.55%. PNB determines the interest rate on a car loan based on the applicant's credit score, profile, and other variables.
Low processing fee: The PNB vehicle loan processing charge is 0.25% of the loan amount, with a minimum and maximum of 1000 and 1500 rupees, respectively.
Ease of documentation: With very few documents, you can easily apply for a car loan from the PNB Bank.
Earnings: The bank asks that you must have a monthly minimum net salary of Rs 25,000. You can meet the requirement by including the income of your spouse, parents, and children.
Debt-to-Income Ratio: If your debt-to-income ratio is high, the bank will deny your application or charge you higher interest rates. Hence, please consider the debt-to-income ratio before applying.
Credit rating: Maintaining a good credit score is one of the most significant factors affecting the interest rate on car loans.
Relationship with the lender: PNB provides additional concessions and benefits to the person who has an existing working relationship with the bank.
The following are the two methods for applying for a PNB car loan:
You could apply for a car loan offline by visiting your nearest PNB branch. Carry all the necessary documents for the loan application with you.
You can apply for a PNB car loan online by following the steps:
Visit the PNB's official website.
Now, click the Online Services tab and select the Online Loans option.
Next, locate and select the Retail Loan option.
Next, click on the Vehicle loan.
Complete the given application form.
Lastly, click on the Submit button to complete your loan application.
You are eligible for a car loan if you meet the following requirements:
You must be at least 21 years old to apply for a car loan.
A good credit score is essential to avail of a car loan from PNB. A credit score of 750 or above is considered ideal.
If you are taking a loan for a business (corporate or non-corporate), the firm or company must have made a cash profit in the previous two years.
If you are a salaried individual, you must have a monthly salary of Rs. 25,000.
Individuals must be able to provide security or collateral.
If you're planning to apply for a car loan with PNB, you'll need to submit the following documents:
Income proof: Salaried individual: Submit the most recent salary certificate.
Form 16 or Income Tax Return for the previous two years (whichever is applicable).
Bank statements for the last 6 to 12 months of salary accounts, whichever is applicable.
Businesses: Balance sheet and ITR of the company or firm for the previous two years.
People involved in agriculture or its allied activities: You must provide proof of land ownership, cropping patterns, or other documentation.
Identity proof: Any government-issued photo ID like Aadhaar card, passport, voter ID, PAN card, etc.
Address proof: You can submit any of the following documents as address proof: passport, utility bills, ration card, driving licence, Aadhaar card, voter ID, etc.
Proforma Invoice of the car: Submit a vehicle purchase quote from an authorised dealer.
Employment proof: Letter from your employer stating your designation, salary, and experience. You can also attach income proof of your parents, spouse, or earning children (if applicable) to justify the loan amount.
Passport-size photographs: You will need to provide two passport-size photographs for the application form.
Before taking out a car loan, weighing the pros and cons is important:
Improves the credit score: When you pay all the EMIs on time, your credit ratings improve.
Low financial impact: Many people do not have the financial means to pay for a car in full, so car loans let you spread the cost over a few years.
Interest Payment: Every bank charges a car loan interest rate. It implies that you might pay more than the retail price.
Monthly payments: You may already have many financial obligations for each month. If you also acquire a car loan, you will make monthly payments to the lender.
On April 1, 2020, the Oriental Bank of Commerce merged with the Punjab National Bank.
The PNB car loan processing charge is 0.25% of the loan amount or Rs 1,500 (whichever is lower). The minimum processing charge is Rs. 1,000.
When you take out a car loan, you pay instalments on a specific date each month until you repay the loan. It is known as the Equated Monthly Instalment (EMI).
PNB requires a minimum net monthly salary or pension of Rs.25,000 to apply for a car loan.
The bank will hypothecate the car for which you are applying for a loan.
When purchasing a new car, the maximum PNB car loan repayment tenure is seven years (84 EMIs).
PNB car loans have no prepayment penalties when the interest rate is floating. However, the bank imposes a 2% penalty for fixed interest rates.
The eligibility criteria for applying for a car loan in Punjab National Bank (PNB) may vary based on factors such as income, credit score, employment status, and other financial obligations.
You can visit your nearest PNB branch or apply for a car loan online. Make sure you have all the necessary documents for the loan application with you.
Punjab National Bank offers one of the lowest car loan interest rates, starting at 7.55% p.a.