Punjab National Bank (PNB) Personal Loan Interest Rate -

Punjab National Bank Personal Loan Interest Rate starts at 11.50% to 12.05%. The lowest EMI per Rs. 1 lakh for 60 months tenure is Rs. 2,199. The loan amount is between Rs. 50, 000 and Rs. 15 lakhs. The loan is available for both salaried person and self-employed individual. To borrow, you should be within the age group of 21 years and 58 years. The tenure ranges from 12 months to 60 months. Apart from the rate of interest, you need to pay additional charges such as processing fee, and other circumstantial charges such as for loan cancellation, late payment, cheque bounce, etc.

In this post, we will discuss about PNB Personal Loan Interest Rate features, charges, factors that influence rate of interest, total cost illustration, interest calculation, EMI calculation, and frequently asked questions.

Features of PNB Personal Loan Interest Rate

Here are the following features:

• The bank has special schemes for borrowers working in banks, government departments, and reputed companies.
• It offers loans to meet all types of personal needs. The funding is also available for pensioners.
• The rate on the loan is up to 12.05%.
• The processing fee is up to 1.8% of the loan amount with taxes.
• There are no charges for part prepayment and foreclosure.
• There is a facility for top-up loan, wherein you can borrow an additional amount over the existing loan. The current rate of interest for the same is 11.50% onward.

PNB Personal Loan Charges

Other than the interest rate, you need to know about other charges applicable by the bank on your personal loan. These charges could be mandatory or circumstantial. Let us know more about these costs:

• Processing Fees: This is a non-refundable fee. The applicable taxes are charged separately on the fee amount. The bank may deduct the processing fee from the disbursal amount or add it up in the first EMI. Punjab National Bank charges up to 1.8% + taxes as processing fee on the borrowed principal amount.
• Foreclosure Charges: If you want to pay off the entire outstanding amount before the tenure’s end, then the bank may apply foreclosure charges. Preclosing the loan will help save you on the interest payout. You will be able to also get rid of the debt early. PNB applies no foreclosure charges.
• Part Payment Charges: You can even partly pay off the outstanding due before the tenure’s end. This will help you reduce the interest payout and reduce the cost of the loan. PNB applies no part payment charges.
• Other Charges: The bank may apply a few charges that are circumstantial. These are related to loan cancellation, late payment, EMI cheque bounce, etc. You must know these charges apart from the rate of interest, and fees for preclosure and part payment.

Factors that Influence PNB Personal Loan Rate

The bank will assess your financial liabilities, monthly income, employment information, loan amount, and other necessaries to determine a rate of interest. Here are the factors that affect the interest rate for the loan.

• Loan Amount: The loan amount is between Rs. 50,000 and Rs. 15 lakhs. PNB may offer a lower rate for a higher amount, and a higher rate for a lower amount.
• Salary: The bank will analyse your financial liabilities and monthly income to know your capacity to pay the EMIs. If you belong to a higher salary bracket, the lender will be able to trust you better on your repayment ability. In this case, you may receive a better offer for interest rate.
• Loan Tenure: To save the most and reduce the interest payout, choose a shorter tenure. The bank may however offer a lower interest rate for longer tenure. The tenure is between 12 months and 60 months for personal loan PNB.
• Repayment Capacity: To know your ability to pay the interest and principal amount, the bank needs to check your repayment capacity. It will go through your previous repayment track record and other financial details. If you have a good repayment capacity, the bank will offer the lowest rate of interest.
• Employer Category: The bank may maintain an internal list of companies. These organizations could be ranked from high to low on the basis of their size, reputation, and relationship with the bank. In case you work for a firm that is among those rated high in the list, then the lender may offer you a better rate of interest.
• Relationship with the Bank: The bank may offer special schemes, rates, and lower charges if you are an existing account holder. You can also enjoy these benefits if you already have a great repayment track record with the bank in the past.

PNB Personal Loan Total Cost

PNB Personal Loan Interest Calculation

The interest amount is the cost that you have the pay over the borrowed principal amount. The interest amount depends on the charged rate of interest. Punjab National Bank personal loan interest rate is the lowest at 11.50%. Consider the lowest rate on Rs. 1 lakh borrowing. In this case, here are the interest and EMI calculations over different tenures.

• It is evident from the above given example that the EMI is lower for a loan on longer tenure. The EMI is higher for a loan of shorter tenure.
• On the other hand, the interest amount is lower on a shorter tenure and higher for a longer tenure.
• Thus, it is better to choose a shorter tenure to save reduce the interest outgo.
• For instance, for 60 months loan of Rs. 1 lakh at 11.50%, the EMI is Rs. 2,199. The interest charged is Rs. 31,940 in this case.
• But, for the same amount and rate, on 2 years tenure, the EMI is higher at Rs. 4,684. But the interest outgo is significantly lower at Rs. 12,416.

PNB Personal Loan EMI Calculation

EMI or equated monthly instalment is a fixed amount towards repayment till end of tenure. You have to pay the monthly instalment every month on a fixed date. The lowest EMI per Rs. 1 lakh at 11.50% rate on 60 months tenure is Rs. 2,199 by Punjab National Bank. The EMI amount depends on the tenure, loan amount, monthly income, employment, interest rate, and other factors. Below we have discussed about different loan amounts over different tenures at 11.50%.

Below is an illustration of the monthly instalment for different loan amounts and tenures at the rate 11.50%:

• It is evident from the above given example that differing loan amounts and tenures even at the same rate of interest, affect the monthly instalment amount.
• The EMI is lower for longer tenure loans, and vice-versa. Each monthly instalment paid contains a part of interest amount and principal repayment.
• Even if the EMI remains the same every month, with each payment, the principal amount increases and the interest component decreases.