Punjab & Sind Bank Car Loan Interest Rate November 2026: 7.85% Floor

Punjab & Sind Bank car loan interest rate: how the grid builds your number

Repo 5.50% plus a 2.10% mark-up gives the PSB Repo Linked Rate of 7.60% since 8 October 2026. On top sit a credit risk premium and a business strategy premium set by your CIBIL Credit Vision Score: 0.08 and 0.17 at 825 or above, so 7.60 plus 0.08 plus 0.17 is the 7.85% floor. Below 650 the risk premium alone is 6.11, and the rate hits 14.30%. The two lowest grid rows carry star and hash marks the bank never explains.

A used car thus costs 2.20 points more at the same score (10.05% against 7.85%), an electric car 0.30 points less; that 7.55% is the lowest electric floor among the 13 lenders that print one (see our electric car loan guide).

Floating means your rate follows the repo rate, raised by 25 basis points to 5.50% on 7 October 2026; at a reset the RBI's 2023 rules let you choose a higher EMI, a longer tenure or both. The bank publishes no fixed-rate switch, and the RBI's 2025 directions on pre-payment charges make prepayment free on loans sanctioned from 1 January 2026.

The EMI, worked out

₹10 lakh over 5 years at 7.85%: EMI ₹20,205, interest ₹2,12,281. At the 14.30% ceiling: EMI ₹23,424, interest ₹4,05,444, so a weak score costs ₹3,219 a month (23,424 minus 20,205) and ₹1,93,163 in all (4,05,444 minus 2,12,281). Try your figures in the car loan EMI calculator.

Fees and charges: what a PSB car loan costs beyond interest

Processing is 0.25% of the loan, minimum ₹1,000 and maximum ₹15,000: ₹2,500 on ₹10 lakh (0.25% of 10,00,000), plus GST. Used cars pay 0.35%, minimum ₹1,000 and maximum ₹25,000, so ₹3,500 on ₹10 lakh. Sugam borrowers get 50% off with a salary account at the bank or 25% off without, and bank staff and pensioners pay no fee.

Foreclosure and part-payment are nil for individuals and proprietorships; the only 1% charge applies when a corporate borrower's loan moves to another bank. The general service charges page (from 1 May 2019) never mentions vehicle loans, so we go by the scheme page; the RBI's 2025 directions bar the charge for individuals anyway.

Documentation is at actuals; inspection is free. Penal charges are not printed, so ask for them in the Key Facts Statement; the RBI's 2023 rule makes them a separate charge, never a higher rate. See our processing fee and charges guide.

Who can borrow from Punjab & Sind Bank, and on what terms

Individuals and business concerns can apply; Sugam is only for permanent employees of central and state governments, PSUs and educational institutes. You must be 18, and the loan must close before you turn 60 if you are in service without a pension, or 70 if you have a pension or NPS, or are not in service.

The bank is quiet on income: the Apna Vahan page tests take-home pay against an unpublished table. Sugam needs ₹30,000 gross a month and E-Vahan ₹30,000 net. The branch route's minimum CIBIL score is unpublished; only the digital route states 700.

The margin is your share of the on-road price: 10% for everyone, 5% for government and PSU employees, nil if they also bank their salary with PSB. On a ₹10 lakh car that is ₹1 lakh, ₹50,000 or nothing. New car loans have no maximum and run 84 months; old cars are capped at ₹75 lakh and 60 months.

No document list is printed; expect KYC, salary slips or ITRs, bank statements and the dealer's proforma invoice.

How to apply: branch, PSB E Apna Vahan, and what to read first

Two doors. PSB E Apna Vahan is the digital one: straight-through, new cars only, CIBIL 700 or more, 0.05 points off every grade, and no timeline stated. The branch door covers old cars, electric cars and Sugam, and applies the zero-margin and fee concessions, so move your salary account first.

Before you sign, read the Key Facts Statement (mandatory since 1 October 2024): it shows the APR with every charge folded in and is valid for at least three working days. Then check the reset clause and the pre-payment line, which should say nil.

Common mistakes with this loan

• Budgeting off the "from 8.70%" marketing line; the table starts at 7.85%, at a score of 825.
• Working the 10% margin on the ex-showroom price instead of the on-road price.
• Taking 84 months without checking that the loan closes before 60 or 70.

Who Punjab & Sind Bank suits, and how it compares with IOB, Union Bank and Bank of Baroda

Three buyers gain most: a government or PSU employee who banks with PSB, a buyer scoring 825 or above, and an electric car buyer (7.55%).

Look elsewhere if your score is under 700: the 14.30% ceiling is the steepest of the four banks here, against 8.85% at IOB, 10.25% at Union Bank and 11.55% at Bank of Baroda. For a fixed rate, Bank of Baroda prints 8.50% to 11.20%; PSB has none.

All four share the 7.85% floor, so the rest decides. IOB funds 90%, charges 0.50% processing and asks for ₹8,000 a month of income. Union Bank funds 90% and charges a flat ₹2,000 plus GST. Bank of Baroda funds 90%, charges ₹1,500 plus GST up to ₹10 lakh and cuts off at 701. PSB alone funds 100%, and its fee is ₹2,500 on ₹10 lakh.

How to choose the right car loan

Find your score band first; it sets your rate at all four banks. Compare the APR in each Key Facts Statement, work the margin in rupees, check the pre-payment and reset clauses, and only then pick a tenure. The car loan hub has the whole field.