Description

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. 

Punjab and Sind Bank Personal Loan Interest Rate

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

Factors Influencing Interest Rates for PSB Personal Loans

  • 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

 

FAQs

Q1Is the interest rate set at 13.50 percent for a personal loan for a salaried individual?
No, it starts at 13.50 percent p.a. Depending on a variety of variables that PSB can take into account, it can be set higher.
Q2Will I need a guarantor to take advantage of the PSB personal loan?
Yes, a guarantor, either a spouse or a son, if the applicant is a pensioner, would be required.
Q3What is the basic eligibility of a pensioner to take advantage of a PSB loan?
The pensioner should have his/her PSB pension account and, when applying for the loan, should be a maximum of 70 years old.
Q4May I use an online PSB personal loan?
No, to apply for a personal loan, you would have to visit the nearest branch of PSB.
Q5Who do I contact to ask about the specifics of a personal loan offered by PSB?
Call PSB's customer service unit at 1800-419-8300 to learn about the different personal loan specifics they sell.