Are you planning to buy your dream car? Several automobile companies have launched new models in the Indian market recently giving you a wide variety of options to choose from. However, everything comes with a cost and hence buying a car also requires lots of money.

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Several banks offer car loan facilities to its customers so that they can buy their dream car. Similarly, Punjab National Bank (PNB) also offers a car loan to its customers.

 

See Zee Business Live TV Streaming Below:

https://tinyurl.com/4ww26cy8, " PNB tweeted on Wednesday.

 

Here is all you need to know about the car loan being offered by PNB:

1. Amount that can be sanctioned under car loan scheme

To individuals the bank sanctions 25 times net monthly salary/income. (Maximum amount of Loan is Rs 25 lakh). While to business concerns need based loans are sanctioned, as per the information provided by the bank.

2. Income criteria for availing the loan

According to the bank, minimum net monthly salary / pension/ income of Rs 20,000 is required in order to avail the car loan.

3. Can a car loan be sanctioned for purchase of old car?

Yes, loan can be sanctioned for vehicles which are not older than 3 years.

4. Amount the borrower is required to contribute

As per the information provided by the bank, for new vehicles, borrower is required to contribute 10 percent in case of purchase of vehicles from Maruti, Tata Motors, Hyundai , Honda Siel, Mahindra and Mahindra. ICML & Force Motors Ltd., with whom Bank is having a tie up arrangement.

For purchase of new vehicles of other make/companies, 15 percent is required to be contributed. While for old vehicles, margin requirement is 30 percent.

5. What is maximum repayment period under car loan scheme?

For new vehicles maximum repayment period is 84 months while for old vehicles it is 60 months.

6. ROI on car loans

For Loans repayable up to 3 years the ROI is 10.75 percent,-where PNB Score is 60 and above while in other cases it is 11.25 percent. For loans Repayable in 3 years and above, the ROI is 11.75 percent.