Punjab and Sind Bank Personal Loan Interest Rate 2022

Both salaried applicants and pensioners are given personal loans up to Rs. 3 lakhs by Punjab & Sind Bank (PSB). The amount of the loan can be used for various personal credit conditions, such as medical emergency costs, travel, or marriage. 

With an interest rate starting from 12.75 percent p.a., Punjab and Sind Bank offer personal loans. Up to 60 months with flexible tenure options. The bank provides personal loans to salaried individuals and pensioners in particular.

Particulars	Salaried Individuals	Pensioners
Interest Rate	13.5% p.a. onwards	12.75% p.a.
Processing Fee	1% of the loan amount	1% of the loan amount
Loan Tenure	Up to 60 months	Up to 60 months
Loan Amount	Maximum of 18 times the monthly salary or Rs.3 lakh, or 1.5 times of the annual salary of the individual whichever is lesser.	Pensioners up to 65 years old: Up to 15 times the monthly pension of the individual or Rs.3 lakh, whichever is lesser
Age criteria	Minimum: 21 years old Maximum: 60 years old (Govt. Employees); 65 years (Private company employees)	Minimum: 21 years old Maximum: 70 years old
Credit Score	750	750
Lowest EMI per lakh	Rs.2,301	Rs.2,263

• Employment status of the applicant: PSB takes into account the form of employment of the applicant, whether the applicant is an individual employed as a government employee or in a private company. Where the borrower is a pensioner, the interest rates are therefore fixed accordingly.
• If the person holds a PSB account: If the applicant holds a PSB savings or salary account, the interest rate offered would be higher. 
• The applicant's repayment ability: PSB takes into account the person's income and his/her past repayment track record, which will be expressed in the CIBIL score of the individual.
• Loan tenure: If the borrower prefers a maximum tenure of 60 months, the interest rate would most likely be set higher compared to loans with shorter tenures.

Illustration: examples 

1. For individuals with a monthly salary of Rs.30,000 

Let's say that Mr. Ram receives a monthly salary of Rs.30,000 and has a 1-year repayment period for a personal loan of Rs.2 lakh. A 1 percent transaction fee and an interest rate of 13.5 percent p.a. are set by the bank. Mr. Ram would have to pay an EMI of Rs. 17.910 to repay the Rs.2 lakh to repay the loan.

Loan Amount	Rs.2 lakhs
Processing Fee	1%
Year	Principal Paid(A)	Interest Paid(B)	Total Payment (A+B)	Outstanding Loan Balance
1	Rs. 15,660	Rs. 2,250	Rs. 17,910	Rs. 1,84,340
2	Rs. 15,837	Rs. 2,074	Rs. 17,911	Rs. 1,68,503
3	Rs. 16,015	Rs. 1,896	Rs. 17,911	Rs. 1,52,488
4	Rs. 16,195	Rs. 1,715	Rs. 17,910	Rs. 1,36,293
5	Rs. 16,377	Rs. 1,533	Rs. 17,910	Rs. 1,19,916
6	Rs. 16,561	Rs. 1,349	Rs. 17,910	Rs. 1,03,355
7	Rs. 16,748	Rs. 1,163	Rs. 17,911	Rs. 86,607
8	Rs. 16,936	Rs. 974	Rs. 17,910	Rs. 69,671
9	Rs. 17,127	Rs. 784	Rs. 17,911	Rs. 52,545
10	Rs. 17,319	Rs. 591	Rs. 17,910	Rs. 35,225
11	Rs. 17,514	Rs. 396	Rs. 17,910	Rs. 17,711
12	Rs. 17,711	Rs. 199	Rs. 17,910	Rs. 0

2. For citizens with a salary of Rs.50,000 

Let's say that Mr. Roy receives a monthly salary of Rs.50,000 and has used his debts to consolidate a personal loan. Since the repayment of Mr. Roy's loan was low in the past, his CIBIL score is 610, resulting in the bank set a higher interest rate of 14 percent p.a. The processing fee is also set at 1 percent and Mr. Roy has selected a 12-month repayment period. The EMI during the tenure was set at Rs.26,936 to repay the loan in 1 year.

Loan Amount	Rs.3 lakhs
Processing Fee	1%
Year	Principal Paid(A)	Interest Paid(B)	Total Payment (A+B)	Outstanding Loan Balance
1	Rs. 23,436	Rs. 3,500	Rs. 26,936	Rs. 2,76,564
2	Rs. 23,710	Rs. 3,227	Rs. 26,937	Rs. 2,52,854
3	Rs. 23,986	Rs. 2,950	Rs. 26,936	Rs. 2,28,868
4	Rs. 24,266	Rs. 2,670	Rs. 26,936	Rs. 2,04,602
5	Rs. 24,549	Rs. 2,387	Rs. 26,936	Rs. 1,80,053
6	Rs. 24,836	Rs. 2,101	Rs. 26,937	Rs. 1,55,218
7	Rs. 25,125	Rs. 1,811	Rs. 26,936	Rs. 1,30,092
8	Rs. 25,418	Rs. 1,518	Rs. 26,936	Rs. 1,04,674
9	Rs. 25,715	Rs. 1,221	Rs. 26,936	Rs. 78,959
10	Rs. 26,015	Rs. 921	Rs. 26,936	Rs. 52,944
11	Rs. 26,318	Rs. 618	Rs. 26,936	Rs. 26,626
12	Rs. 26,626	Rs. 311	Rs. 26,937	Rs. 0