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PNB Giving Loan For Used Car Too. Hurry!!!

Used car loans

Punjab National Bank or PNB has been in the loan business for a long time now. After the huge hit of their loans for new cars, PNB have now entered into the used car segment as well. This will benefit the middle-class people and for people who are buying cars for a necessity more than for luxury. The rules and regulations for PNB used car loan are more or less similar to those that prevail in the New Car Loan, barring a few modifications here and there.

Features of used car loan from PNB

Just like loans for new cards, loans for used car too come with a specific term. The used car loans come with a minimum tenure of 3 years and a maximum tenure of 5 years. While the new car loans are based upon the “On Road” price, the used car loans are based upon the “Ex-Showroom” price. The maximum amount of loan that is sanctioned by PNB for buying used cars is the lesser amount of either of these – the  monthly net salary of the applicant multiplied by 25 times or 25 lac INR. Though the amount mentioned here is the same as that is approved for loans in the new car segment. The only difference is that, for new cars, while considering the monthly net salary, it is normal to include the applicant’s spouse’s salary as well.

It takes just 4 days to process a PNB used car Loan. The rate of interest charged by PNB is 1.25% PNB has issued a list of manufacturers whose car models are given priority while sanctioning loans. Some of these manufacturers are Hyundai Motors, Mahindra & Mahindra, Nissan, Chevrolet, Ford, General Motors India, FIAT, Honda, Skoda, Tata Motors, Hindustan Motors, Toyota, Mercedes – Benz, Nissan, Maruti, Reva and SAN Engineering. The actual charges apply for fees like stamp duty, repossession, lawful proceeding and other charges. The margin offered by PNB is around 30% of the processing fee.

Eligibility for applying for used car loan and Documentation

Applicants of used car loan from PNB should be between the age of 21 and 58 years. The minimum monthly income should be around 7000 INR for salaried applicants and around 6 lac INR of annual income for self-employed applicants. The basic documents that need to be submitted by applicants are proofs of identity, address, income, photographs as required by the bank, bank statement for the required period and proof of signature. Once all these documents are submitted on time with relevant self-attestations, the used car loan will be processed within 4 days of receipt of these documents.

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