To make Loan available to prospective borrowers for purchase of car on attractive terms.

To Purpose:

  • 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 and unencumbered (i.e not financed by other Bank/Financial institutions on the date of loan).
  • Reimbursement of cost of new Car/ Van/ Jeep/ Multi Utility Vehicle (MUV) or Sports Utility Vehicle (SUV) purchased by individual/ corporate out of own funds. (Not more than 3 months old).


  • For private use only.
  • Individuals and Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children. (whether married or unmarried)/Earning daughter in law
  • Business concerns (corporate or non-corporate). Company /Firm to be in cash profit for the last two years
  • For reimbursement of cost of new vehicle purchased by individual/ corporate out of own funds.
  • Existing customer with satisfactory track record viz. all loan accounts running regular with nil inspection irregularity.
  • 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 dealer be made
  • Invoice date of the vehicle not more than 3 months old.

Income Criteria

  • Minimum net monthly salary / pension/ income - Rs.25000/-
  • 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.
  • No minimum monthly income is required in cases where borrower agrees to give 110% of liquid security in shape of Term Deposit.
  • In case of persons engaged in allied agricultural activities and agriculturists, net income can be arrived at by sanctioning authority based on their land holding, cropping pattern, yield, etc..

Quantum Of Finance

  • For individuals/Proprietorship concerns: 25 times of Gross Monthly Salary/ Pension/ Income with a ceiling of Rs 100 lakh (for one or more vehicles).
  • 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 or or nil on ex-showroom price
  • For Old Vehicles: 25% of the value of the vehicle.
  • For reimbursement of cost of new vehicle purchased by individual/ corporate out of own funds: 25% of on-road price.
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Vehicle purchased to be hypothecated to the bank.

Guarantee/ Collateral Security

Third party guarantee / collateral security as follows:

Guarantee acceptable to the Bank in case of Gross Monthly salary is less than Rs. 50000/-

No guarantee required for permanent employees of Central Govt./ State Govt./ PSBs/MNCs/ Listed companies of BSE or NSC whose shares are actively traded and quoted above par irrespective of income.

For all other cases Third Party guarantee/ Collateral Security acceptable to the Bank.

Repayment (Maximum)

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

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

(Repayment to be ensured within 70 years for salaried persons with pension and pensioners. For others repayment to be ensures within 65 years of age)

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.

Where the borrower shift to other bank within 30 days from the date of upward revision in the rate of interest or change in other terms of sanction.

Rate Of Interest


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Processing Charges/ Upfront Fee

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Documentation Charges

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Above are only salient features of the scheme. For details please contact nearest branch