Punjab and Sind Bank Personal Loan

Features and Benefits of Punjab & Sind Bank Personal Loan

A well-known public sector bank in India with its headquarters in the nation’s capital is Punjab and Sind Bank. The bank offers a wide range of retail and corporate banking services, including priority banking, agricultural banking, international banking, digital banking, and banking for small and medium-sized businesses (MSBs).

The bank offers a variety of loan solutions to meet the demands of its clients. Punjab & Sind Bank personal loans cater to and can be used to cover all types of personal needs that a customer requires. These loans are processed quickly and don’t need a lot of paperwork to get approved.

Before you apply for Punjab & Sind Bank personal loan, you must familiarise yourself with the many features and benefits of PSB personal loan. They are:

• The personal loan is available at a preferential interest rate for retirees who keep a pension account with Dena Bank.
• Any genuine personal credit need, such as bills for education, a wedding, travel, or urgent medical care, may be satisfied with a Punjab and Sind Bank personal loan.
• A minimal fee of 1% of the total loan amount will be paid to borrowers as a processing fee.
• Competitive interest rates are offered with it. A fair interest rate is provided to pensioners.
• A large loan amount of up to 18 times the net monthly wage and 15 times the net monthly pension for retirees is made available to borrowers.
• For their loan repayment period, borrowers can choose up to 60 months.

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Punjab & Sind Bank Personal Loan Interest Rates

The Punjab & Sind Bank personal loan interest rate ranges between 10.90% – 12.90% p.a. However, the rates are subject to change. The interest rates may vary according to the various aspects of a borrower.

Factors Affecting the Punjab & Sind Bank Personal Loan Interest Rate

• Income

It is well-known that responsible individuals with more disposable income have a higher capacity for repayment than those with lesser earnings. It is standard practice in the lending industry that borrowers with high and steady disposable income get loans at reduced interest rates. This could not be the case for debtors with lower income levels.

• Credit Score

A person’s credit score indicates their overall financial health in terms of income, outstanding debt, borrowing habits, and history of timely repayment. A higher credit score increases the amount of confidence in the borrower’s ability to manage their finances, and it may even enable them to obtain loans at lower interest rates than those offered to other borrowers. Typically, a good CIBIL score is greater than 750.

• Debt-to-Income Ratio

The ratio of all your debt payments to your total income is known as the debt-to-income ratio. A higher debt-to-income ratio indicates that the borrower is carrying a heavier debt load, and the lender may, as a result, charge you a higher interest rate on your loan.

• Employment

Because personal loans are often unsecured; lenders are looking for different criteria to ensure the applicant’s creditworthiness. Lenders frequently have significantly more lenient lending standards for borrowers working with specific organisations because they perceive them to be more financially stable and accountable for making regular payments.

• Repayment History

Similar to looking at your credit score, a lender may charge you a very high-interest rate or even deny your loan application if they discover defaults in your credit history. Most lenders prefer customers with no defaults in the previous 12 months.

Punjab & Sind Bank Personal Loan Eligibility Criteria

Interested applicants must meet the Punjab & Sind Bank personal loan eligibility criteria. The applicant should understand the following Punjab & Sind Bank personal loan requirements:

• The age of the applicant must be between 21 to 70 years
• A government employee or an institution’s permanent and regular employee or an employee with a pension account with Punjab and Sind Bank

Factors Affecting Punjab & Sind Bank Personal Loan Eligibility

An applicant’s eligibility for personal loan fluctuates with their various current as well as past activities. The factors affecting Punjab & Sind Bank personal loan eligibility are explained as follows:

• Monthly Income

The lender would want to confirm that you receive a sufficient monthly income to make timely loan repayments. Location affects the criteria for income as well. Due to their high cost of living, major cities like Mumbai, Delhi, and Bengaluru typically have higher rates.

• Credit Score

It enables the lender to see how responsible you have been in the past while using credit for things like loans and credit cards. For instance, the CIBIL score, which ranges between 300 and 900, is used by the majority of lenders in India. The likelihood of being approved for a personal loan increase with the credit score.

• Age

Your age aids the lender in determining how many working years you have left. Lenders often favour paid applicants between the ages of 23 and 58. The age range for self-employed professionals and non-professionals is 28 to 65.

• Current Liabilities

The lender wants to know in detail about any loans you are already repaying, such as home loans, student loans, and so on. The lender would then want to ensure that you have enough income to repay the new Personal Loan you intend to take and your current debts.

• Work Experience

Candidates with greater job experience are typically thought to have a more stable financial future than those who have recently started working. Depending on the lender you choose, your line of work, and other circumstances, the required minimum experience may change.

Punjab & Sind Bank Fees and Charges

The banks charge a certain fee from an applicant that helps them meet the various costs incurred while processing their loan. Applicants may encounter the following fees and charges as they apply for Punjab & Sind Bank personal loans:

• The inspection and prepayment charges are nil.
• The documentation charges are the same as actual stamping charges only
• The processing fees for government, pensioners, approved institutes, and PSUs are 0.50% plus applicable GST rates
• The processing fees for private or MNCs are 1.0% plus applicable GST rates

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Documents Required For Punjab & Sind Bank Personal Loan

An applicant must assemble various documents beforehand to speed up the process of getting a personal loan. The documents required for Punjab & Sind Bank personal loan are:

• Proof of identity such as driving license, voter ID, aadhaar card, PAN card, etc.
• Address proof includes driving license, voter ID, aadhaar card, PAN card, electricity bill, water bill, rent agreement or any other utility bills
• Statement of bank account for the past six months
• Pay slips
• Income proof 
• A document listing all personal assets and liabilities
• A filled and signed application form
• Application form duly filled and attested by the applicant
• Latest passport size photographs

How does the EMI calculation work for Punjab & Sind Bank personal loans?

One can take aid from the EMI calculator to calculate the EMI of a Punjab & Sind Bank personal loan. The calculator factors important variables like the base amount, interest rate and tenure and provides an accurate answer to its user. However, if a person is persistent in calculating their EMIs manually, they can use the following formula.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here, ‘EMI’ depicts Equated Monthly Instalments, ‘N’ depicts the number of monthly instalments, ‘P’ depicts the principal loan amount, and ‘R’ depicts the rate of interest