Scheme For Financing Purchase Of Car By Public


To make available Loan for purchase of car by proposed car buyers on attractive terms.


To purchase:

New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV).

Old car/van/jeep/MUV/SUV, which are not older than three years.


For private use only.


Business concerns (corporate or non-corporate).

Income Criteria

Minimum net monthly salary / pension/ income - Rs.20000/-.

Income of Parent(s)/Spouse/ Earning Children can be added for determining loan amount/eligibility. However, out of above income of only one person can be added and he/she will stand as a co-borrower.

Quantum Of Finance

For individuals/Proprietorship concerns: Rs. 25 lac or 25 times of Net Monthly Salary / Pension/ Income, whichever is lower. Loans for higher amount may be considered on merits of the case.

For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles).


For New Vehicle: 15% of on-road price inclusive of one time road tax & insurance.

For Car where PNB has tie up arrangement with manufacturers/dealers: 10% of on-road price

For Old Vehicles: 30% of the value of the vehicle.


Vehicle purchased to be hypothecated to the bank.

Guarantee/ Collateral Security

Third Party guarantee/ Collateral Security acceptable to the Bank.

(May be waived by the Sanctioning Authority on merits of individual case)

Repayment (Maximum)

For New Car/Van/Jeep/MUV/SUV: 84 EMIs

For Old Car/Van/Jeep/ MUV/SUV: 60 EMIs

In case of persons engaged in agriculture & allied activities: At Half yearly/yearly intervals coinciding with the time of harvest.

Prepayment Charges

Floating Rate: NO pre-payment charges.

Fixed rate: @2% on the outstanding pre-paid. However, no prepayment charges to be levied :-

Where the loans are prepaid by the borrowers from their own sources.

Rate Of Interest

09.40% (Terms & Conditions follows)

Processing Charges/ Upfront Fee

1.0% of loan amount maximum of Rs.6000/- (including Documentation Charges)