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Public sector bank · Used Car Loan

PNB Used Car Loan 2026

Punjab National Bank finances nearly-new used cars (up to 3 years old) at the lowest starting rate we track, with a very low capped fee. Interest rate 9.45% – 10.55%, loan Up to 75% of the car’s value, tenure Up to 5 years (60 EMIs).

Rates as of 27 Sep 2026 (aggregator) · Checked 27 September 2026
Interest rate
9.45%
up to 10.55%
EMI on ₹5,00,000 (4 yrs)
₹12,550
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PNB Used Car Loan at a glance

Interest rate9.45% – 10.55%
Processing fee0.25% of loan (min ₹1,000, max ₹1,500) + GST
Loan amountUp to 75% of the car’s value
TenureUp to 5 years (60 EMIs)
Margin25% (loan up to 75%)
Vehicle ageCar not older than 3 years
Lender typePublic sector bank
Rank on this site#1 of 8 by starting rate
Strengths
  • Lowest starting rate (9.45%)
  • Fee capped at ₹1,500
  • No prepayment charge on floating rate
Watch out for
  • Only cars up to 3 years old
  • 25% margin — larger down payment

PNB used car loan interest rate & charges

FeaturePNB
Interest rate9.45% – 10.55%
Rate detailsFloating, linked to PNB’s repo-linked lending rate (RLLR): 9.45% – 10.55%. Fixed-rate option 10.45% – 11.55%.
Processing fee0.25% of loan (min ₹1,000, max ₹1,500) + GST
Loan amountUp to 75% of the car’s value
TenureUp to 5 years (60 EMIs)
Prepayment / foreclosureFloating: nil; fixed: 2% of amount prepaid
Margin25% (loan up to 75%)
Vehicle ageCar not older than 3 years
Minimum income₹25,000 net monthly

Special schemes & features

Floating or fixed

Choose RLLR-linked floating (no prepayment charge) or fixed rate

Source: www.bankbazaar.com, 27 Sep 2026 (aggregator). Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.

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EMI at PNB’s rates

Loan amountEMI @ 9.45%EMI @ 10.00%EMI @ 10.55%
₹3,00,000₹7,530₹7,609₹7,688
₹5,00,000₹12,550₹12,681₹12,814
₹8,00,000₹20,079₹20,290₹20,502

Tenure 4 years, reducing-balance method. Total interest on ₹5,00,000 at 9.45%: ₹1,02,382.

PNB used car loan EMI calculator

Eligibility

  • Salaried, self-employed and professionals
  • Net monthly income ₹25,000 or more
  • Car not older than 3 years

Full used car loan eligibility guide →

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Documents required

  • KYC: PAN and Aadhaar / passport / voter ID / driving licence
  • Income proof: last 3 salary slips and Form 16, or 2 years’ ITR with financials for self-employed
  • Bank statements (usually last 6 months)
  • Copy of the car’s RC, valid insurance and PUC
  • Sale agreement or dealer invoice / proforma
  • Seller’s KYC and signed Form 29 and Form 30 for RC transfer
  • If the car had a loan: previous financier’s NOC and Form 35
  • Valuation / inspection report (arranged by the lender)

How to apply for PNB Used Car Loan

  1. Check eligibilityKnow your credit score and how much EMI your income supports; get a pre-approval if your bank offers one.
  2. Shortlist and check the carVerify RC, pending finance, challans, service and accident history; get an inspection.
  3. ValuationThe lender’s empanelled valuer inspects the car; funding is a % of this valuation, not the asking price.
  4. Sanction and KFSCompare the Key Facts Statement (APR, fees, foreclosure terms) — it stays valid for at least 3 working days.
  5. PaperworkSign the loan agreement, Form 34 (hypothecation) and RC transfer forms; pay your down payment.
  6. Disbursal and RC updateThe lender usually pays the seller or dealer; the RC is transferred to you with the new lender’s hypothecation noted.

PNB vs other lenders

LenderRateProcessing feeTenureEMI on ₹5,00,000
PNB Used Car Loan9.45% – 10.55%0.25% of loan (min ₹1,000, max ₹1,500) + GSTUp to 5 years (60 EMIs)₹12,550
Indian Bank Pre-owned Car Loan9.55% – 11.65%As per the bank’s service-charge schedule — ask the branchUp to 6 years (72 months)₹12,574
ICICI Bank Pre-owned Car Loan9.75% onwards2% of loan, max ₹20,000 + GSTUp to 7 years₹12,621
Bank of Baroda Pre-owned Car Loan10.20% – 12.95%0.50% of loan + GST (min ₹2,500, max ₹10,000 + GST)Up to 5 years (car age from invoice + tenure ≤ 96 months)₹12,729
SBI Pre-owned Car Loan10.45% – 15.60%1.50% of loan + GST (min ₹3,000, max ₹10,000 + GST)Up to 5 years (car age + tenure ≤ 10 years)₹12,790
Tata Capital Used Car Loan10.49% onwardsUp to 2.95% of loan + GST12 – 72 months₹12,799
HDFC Bank Used Car Loan11.25% onwardsAs per sanction — see the KFS (not published on sources checked)12 – 60 months₹12,984
Sundaram Finance Used Car Loan12.50% onwardsAbout ₹2,500 (aggregator)Up to 4 years (48 months)₹13,290
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Frequently asked questions

What is the PNB Used Car Loan used car loan interest rate?

PNB used car loan rates start at 9.45% and go up to 10.55% p.a. (as of 27 Sep 2026 (aggregator)). The rate you get depends on your credit score, income and loan details.

What is the EMI for ₹5,00,000 from PNB?

At 9.45% for 4 years the EMI is about ₹12,550, with total interest of ₹1,02,382.

What is the processing fee?

PNB: 0.25% of loan (min ₹1,000, max ₹1,500) + GST. GST at 18% applies on fees.

What is the maximum tenure?

PNB: Up to 5 years (60 EMIs).

Can I prepay or foreclose the loan?

PNB: Floating: nil; fixed: 2% of amount prepaid.

Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with PNB Used Car Loan. Terms change — confirm with the lender.