PNB (Punjab National Bank) is one of India's most prominent retail lenders, offering comprehensive financing options across housing, auto, and personal consumption categories. Equated Monthly Installments (EMIs) represent the fixed amount you pay back to PNB each month until your principal loan amount and accrued interest are fully settled.
| Loan Category | Indicative Interest Rate (p.a.) | Max Loan Tenure | Processing Fee Range |
|---|---|---|---|
| PNB Home Loan | 8.45% - 9.50% | Up to 30 Years | 0.35% - 0.50% of loan amount |
| PNB Car Loan | 8.80% - 9.90% | Up to 7 Years | ₹500 - ₹1,500 flat fee |
| PNB Personal Loan | 11.25% - 14.50% | Up to 5 Years | 1.00% - 2.50% of principal |
The mathematical formula used by PNB (Punjab National Bank) to compute your monthly Equated Monthly Installment is based on reducing balance interest principles:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
When you make partial prepayments toward your PNB loan, the lump sum payment is applied directly against your outstanding principal balance. Because monthly interest charges are recalculated on the reduced principal, prepayment significantly shortens your total loan tenure and saves lakhs of rupees in interest costs over the life of the loan.