Getting a car loan has never been easier, especially with the help of Punjab and Sind Bank. The bank offers a wholesome solution to all your vehicle and finance-related needs. Hence, you won't have to worry about anything at all.
Anyone from permanent employees of Central, State governments and Public Sector Undertakings to permanent employees of reputed education institutes, as approved by the bank, are eligible to apply for a car loan.
For existing borrowers who have availed backed loan from the bank, the same is tunning regular inclusive fresh sanction, NIL margin of on-road price inclusive of one-time road tax, registration, and insurance.
Some characteristics of the Punjab and Sind Bank Car loan are:
The repayment tenure is a maximum of 84 months, making it easy for you to pay back in time.
The documentation process is hassle-free and easy.
You get a base rate of about 9.70% to 14%.
PSB bank offers the lowest interest rates.
About 7.95% for one month MCLR (more than overnight up to 1 month)
About 8.30% for three-month MCLR (more than 1 month and upto months)
About 8.50% for six-month MCLR (more than 3 months and up to 6 months)
About 8.65% for one year MCLR (more than 6 months and up to 1 year)
Punjab and Sind Bank car loan varies from 9.05% for new cars to about 10.05% for used cars. The car loan interest rates are based on factors like the loan tenure, vehicle category, your relationship with the bank, and much more.
Margin: (for new cars)- up to 15% and for used cars, up to 25%.
A CIBIL score of 750 and above is healthy and needed for a car loan. Considering that, the minimum loan tenure for a car loan is about 5 years, during which you can avail of a minimum interest rate of 7.10% to 7.90% for new cars and about 9.85%-10.50% for used cars.
Each bank has a way they decide the best interest rate for a car loan, depending on certain factors. Here's a list of all of those, and how they can affect the interest rate of your car loan.
The credit history of the individual: Your credit history has a huge impact on the car's interest rate. In case you don't know anything about your score, you may want to get that checked first. Once you check your score, you are likely to be offered a higher rate of interest.
Repaying capacity of the individual: The second factor crucial to determine the interest rates of a car loan is the paying capacity of the individual. The lower the debt-to-income ratio, the better it is for your interest rates. This shows that a lender can easily pay back the loan without any hardships.
Car loan amount/downpayment amount: The higher the downpayment you make, the better it is for your interest rate. For instance, if you pay a high amount of downpayment for your car, the bank is more likely to offer you a lower interest rate. Plus, it makes your financial condition a whole lot better.
Inflation and more: Another factor that determines the car loan interest rate is the inflation rate of a particular country and areas surrounding the same. Since this factor is not directly in your hands, you might want to check the time and inflation rate at the time of applying for the car loan.
Repayment period: The next important factor about the interest rates of a car loan is the repayment period or the tenure of your car loan. The higher your tenure is, the more interest you would be paying. It is also possible that you the rate of interest as well.
Type of vehicle: Another important factor in deciding the interest rate of your car loan is the car model and age of the vehicle that you want to buy or take a loan for. Your vehicle is seen as collateral and will be hypothecated to the bank for the loan tenure. In case you make a default on your loan, the bank is permitted to seize the car and sell it back to the dealer to collect the amount.
Punjab and Sind Bank have the age of the individual as one of their major eligibility criteria to apply for their car loan.
The minimum age of the applicant needs to be about 18 years.
The maximum age of the individual should not be more than 60 years for service class (not receiving a pension), 70 years (for service class receiving a pension), and 70 years for other individuals.
You would need the following documents to start your car loan application at the Punjab and Sind Bank.
a. Identity documents (Aadhar card, passport, voter ID)
b. Address proof (Passport, Voter ID, Registered rent, or municipal tax payment receipt, latest utility bills, bank statement, Aadhar card)
c. Car-related documents (RC copy, recent photographs of the individual, insurance copy, proforma invoice of the car)
PSB car loans can be applied for through online and offline modes. Here's how:
Download the PSB mobile application.
If you're an existing user, log in through your mobile number, or log in through a newly registered account.
Apply for the loan by filling in the online application.
The bank representatives with then follow up with your application
You may also track the status of your application thereafter.
Visit the nearest branch of Punjab and Sind Bank.
Meet with the concerned bank manager and get your car loan application form.
Fill in the details and submit the required charges for the application to the bank itself.
Collect a receipt of payment and confirm your application.
Getting a car loan has become super easy, especially since different banks have different interest rates for individuals. Different lenders offer loans for new as well as used cars. The entire process is simple with minimum documents, and borrowers are assured of not facing any difficulties with flexible repayment options. Here are some of the tips that you can follow to negotiate for the best car loan interest rate.
Negotiate the price of the car: One of the first tips for borrowers for the best car loan interest rate is to negotiate or reduce the price of the car. Most of the car dealers make big profit margins when it comes to selling a vehicle. Hence, it is recommended that buyers check with several dealers to bring down the cost of the car as much as possible.
Check for the lowest interest rate: Punjab and Sind Bank offers different automobile loans, which could be suitable for borrowers, especially at lower car loan interest rates. It is recommended to check with different lenders to ensure you receive the lowest interest rate.
Choose the shortest tenure you can afford: Car loans and finance options are available for a period of as long as 5 years. Most importantly, in order to reduce the EMI, you need to opt for a longer duration and then pay more interest. Hence, you need to choose a shorter tenure if you are able to afford a higher EMI. A shorter duration helps borrowers save a significant amount on their loan repayments.
Understand the terms and conditions: The next important thing you should be doing while negotiating for the lowest interest rates is to understand the terms and conditions of the loan agreement. It is important to read everything before making the right decision. Understanding the different features like the repayment penalties and other features of the loan is crucial before signing the agreement.
The age of the vehicle needs to be not more than four years in the case of used cars.
The bank does not charge any foreclosure charges or part payment charges in the case of individual borrowers when it comes to PSB Car Loans. However, if you're a corporate borrower, you may have to pay a 1% of the outstanding loan amount as part of the foreclosure charges.
You can apply for a loan as soon as you turn 18.
Currently, there are no processing charges applied for a PSB car loan.
The minimum margin that you can get is about 15% of the car's value.