Mahindra Finance vs Punjab National Bank at a glance
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Loan provider type | NBFC | Public sector bank |
| Legal name | Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) | Punjab National Bank |
| Vehicle loans with a published rate | Car loan, Used car loan, Three-wheeler loan, Tractor loan, Commercial vehicle loan | Car loan, Two-wheeler loan, Used car loan, Electric car loan |
| Car loan: published rate | 8% - 25% p.a.policy range, new assets | From 7.60%up to 9.70% floating, CIBIL-based |
| Car loan: maximum tenure | 5 years | 84 months |
| Used car loan: published rate | 8% - 25% p.a.policy range, pre-owned assets | From 9.45% floating / 10.45% fixed |
| Used car loan: maximum tenure | 5 years | 60 months |
| Official website | mahindrafinance.com | pnb.bank.in |
Mahindra Finance vs Punjab National Bank car loan: rate, fees and tenure
Starting car loan rates as published: Mahindra Finance from 8% and Punjab National Bank from 7.60%. Punjab National Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered. Punjab National Bank lists the longer maximum tenure (84 months).
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Car Loan (also separate Utility Vehicle Loan) | PNB Car Loan |
| Published rate | 8% - 25% p.a.policy range, new assets | From 7.60%up to 9.70% floating, CIBIL-based |
| Rate basis | Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basis | RLLR-linked (floating); fixed option available |
| Maximum tenure | 5 years | 84 months |
| Maximum funding | Up to 100% of ex-showroom value | 85% of on-road price (90% with manufacturer tie-ups); individuals up to Rs 100 lakh |
| Processing fee | Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra cars | 0.25% of loan (min Rs 1,000, max Rs 1,500); nil documentation |
| Pre-closure / prepayment | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) | Floating: nil; fixed: 2% on amount prepaid (exceptions apply) |
| Other terms published |
|
|
| Official source | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com | pnb.bank.in pnb.bank.in pnb.bank.in |
EMI illustration: ₹10 lakh over 60 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Mahindra Finance | 8% | ₹20,276 | ₹2,16,584 | ₹12,16,584 |
| Punjab National Bank | 7.60% | ₹20,086 | ₹2,05,130 | ₹12,05,130 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (60 months)
| Loan amount | Mahindra Finance (8%) | Punjab National Bank (7.60%) |
|---|---|---|
| ₹5 lakh | ₹10,138 | ₹10,043 |
| ₹10 lakh | ₹20,276 | ₹20,086 |
| ₹15 lakh | ₹30,415 | ₹30,128 |
| ₹20 lakh | ₹40,553 | ₹40,171 |
Read the full guide: Car loan · EMI calculator
Mahindra Finance vs Punjab National Bank two-wheeler loan: rate, fees and tenure
Only Punjab National Bank publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Mahindra Finance does not publish a two-wheeler loan rate on its website, so none is shown.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Not published | PNB Saarthi / PNB Power Ride (women) |
| Published rate | Not published | From 10.00%Power Ride; 10.85% salaried; 11.35% others |
| Rate basis | Not published | RLLR-linked |
| Maximum tenure | Not published | 60 EMIs (scooters/motorcycles) |
| Maximum funding | Not published | 90% (salaried, salary via PNB) or 75% of cost; max Rs 1.5 lakh (Rs 10 lakh for 200cc+) |
| Processing fee | Not published | 0.50% of loan (min Rs 500, max Rs 1,000) |
| Pre-closure / prepayment | Not published | Nil |
| Other terms published | Not published |
|
| Official source | Not published | pnb.bank.in pnb.bank.in pnb.bank.in |
Read the full guide: Two-wheeler loan · EMI calculator
Mahindra Finance vs Punjab National Bank used car loan: rate, fees and tenure
Starting used car loan rates as published: Mahindra Finance from 8% and Punjab National Bank from 9.45%. Mahindra Finance is lower at the starting rate, but the top of each range and your own credit profile decide what you are actually offered.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Used Car Loan | PNB Car Loan (used vehicles) |
| Published rate | 8% - 25% p.a.policy range, pre-owned assets | From 9.45% floating / 10.45% fixed |
| Rate basis | Not published | RLLR-linked (floating) or fixed |
| Maximum tenure | 5 years | 60 months |
| Maximum funding | Up to 90% of car value | 75% of vehicle value (25% margin); vehicle up to 3 years old |
| Processing fee | Up to 2% of sanction amount | Not published |
| Pre-closure / prepayment | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) | Floating: nil; fixed: 2% on amount prepaid |
| Other terms published |
|
|
| Official source | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com | pnb.bank.in pnb.bank.in |
EMI illustration: ₹5 lakh over 48 months
| Loan provider | Rate used | Monthly EMI | Total interest | Total repayable |
|---|---|---|---|---|
| Mahindra Finance | 8% | ₹12,206 | ₹85,910 | ₹5,85,910 |
| Punjab National Bank | 9.45% | ₹12,550 | ₹1,02,382 | ₹6,02,382 |
Illustration only, at each loan provider's lowest published rate. It leaves out processing fees, GST, insurance and any other charges, and it is not an offer. Your approved rate may be higher.
Monthly EMI at other loan amounts (48 months)
| Loan amount | Mahindra Finance (8%) | Punjab National Bank (9.45%) |
|---|---|---|
| ₹3 lakh | ₹7,324 | ₹7,530 |
| ₹5 lakh | ₹12,206 | ₹12,550 |
| ₹8 lakh | ₹19,530 | ₹20,079 |
Read the full guide: Used car loan · EMI calculator
Mahindra Finance vs Punjab National Bank electric car loan: rate, fees and tenure
Only Punjab National Bank publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Mahindra Finance does not publish an electric car loan rate on its website, so none is shown.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Not published | PNB Green Car (E-Vehicle) Loan |
| Published rate | Not published | From 7.60% |
| Rate basis | Not published | RLLR-linked |
| Maximum tenure | Not published | 120 EMIs (10 years) |
| Maximum funding | Not published | 90% of on-road price (10% margin), or nil margin on ex-showroom price |
| Processing fee | Not published | Nil |
| Pre-closure / prepayment | Not published | Nil |
| Other terms published | Not published |
|
| Official source | Not published | pnb.bank.in pnb.bank.in |
Read the full guide: Electric car loan
Mahindra Finance vs Punjab National Bank three-wheeler loan: rate, fees and tenure
Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Punjab National Bank does not publish a three-wheeler loan rate on its website, so none is shown.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Three-Wheeler Loan | Not published |
| Published rate | 8% - 25% p.a.policy range, 3-wheelers | Not published |
| Maximum tenure | 4 years | Not published |
| Maximum funding | Based on vehicle and customer profile | Not published |
| Pre-closure / prepayment | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) | Not published |
| Other terms published |
| Not published |
| Official source | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com | Not published |
Read the full guide: Three-wheeler loan
Mahindra Finance vs Punjab National Bank tractor loan: rate, fees and tenure
Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Punjab National Bank lists the longer maximum tenure (new tractor: 7-9 years; no-mortgage variant: 5 years). Punjab National Bank does not publish a tractor loan rate on its website, so none is shown.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Tractor Loan | PNB Farm Mechanisation Scheme (tractor financing) |
| Published rate | 8% - 25% p.a.policy range, new/pre-owned assets | Not published |
| Maximum tenure | 5 years (6-60 months) | New tractor: 7-9 years; no-mortgage variant: 5 years |
| Maximum funding | No fixed minimum or maximum amount | Need based, net of margin (min 40% margin for no-mortgage variant) |
| Processing fee | Up to 2% of sanction amount (farm equipment) | Not published |
| Pre-closure / prepayment | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) | Not published |
| Other terms published |
|
|
| Official source | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com | pnb.bank.in pnb.bank.in |
Read the full guide: Tractor loan
Mahindra Finance vs Punjab National Bank commercial vehicle loan: rate, fees and tenure
Only Mahindra Finance publishes a rate for this product with a stated starting figure, so a like-for-like ranking is not possible. Punjab National Bank does not publish a commercial vehicle loan rate on its website, so none is shown.
| Detail | Mahindra Finance | Punjab National Bank |
|---|---|---|
| Product | Commercial Vehicle Loan | Not published |
| Published rate | 8% - 25% p.a.policy range, new/pre-owned assets | Not published |
| Rate basis | Monthly reducing balance (per product page) | Not published |
| Maximum tenure | 60 months new; 36 months used | Not published |
| Processing fee | Up to 2% of sanction amount | Not published |
| Pre-closure / prepayment | 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months) | Not published |
| Other terms published |
| Not published |
| Official source | mahindrafinance.com media.mahindrafinance.com mahindrafinance.com | Not published |
Read the full guide: Commercial vehicle loan
Which is better: Mahindra Finance or Punjab National Bank?
No loan provider is best for everyone. This is how the published figures split, product by product.
- Car loan, lower starting rate: Punjab National Bank (7.60%) versus 8% at Mahindra Finance.
- Used car loan, lower starting rate: Mahindra Finance (8%) versus 9.45% at Punjab National Bank.
- Car loan, longer maximum tenure: Punjab National Bank (84 months). A longer tenure lowers the EMI but raises total interest.
- Tractor loan, longer maximum tenure: Punjab National Bank (new tractor: 7-9 years; no-mortgage variant: 5 years). A longer tenure lowers the EMI but raises total interest.
Pick on total cost, not the headline rate: ask each loan provider for the Key Fact Statement and compare the APR and total repayable amount. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
Bank type and how each loan provider sets its rate
Mahindra Finance is a nbfc and Punjab National Bank is a public sector bank.
What the loan providers' own pages say about how their rates are set:
- Mahindra Finance car loan: Policy allows fixed, floating or hybrid; car loan FAQ quotes on flat-rate basis.
- Mahindra Finance commercial vehicle loan: Monthly reducing balance (per product page).
- Punjab National Bank car loan: RLLR-linked (floating); fixed option available.
- Punjab National Bank two-wheeler loan: RLLR-linked.
- Punjab National Bank used car loan: RLLR-linked (floating) or fixed.
- Punjab National Bank electric car loan: RLLR-linked.
Banks and non-banking finance companies (NBFCs) publish rates in different ways: some give a range, some only a starting rate and some only a maximum. That is why this page compares like with like and marks every gap as not published instead of guessing.
About Mahindra Finance and Punjab National Bank
Mahindra Finance
NBFC · Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)
Mahindra Group vehicle financier focused on rural and semi-urban India; finances Mahindra UVs/tractors and other brands
Lowest published starting rate: 8% (Car loan)
Punjab National Bank
Public sector bank
Public sector bank with RLLR-linked vehicle loans, low capped processing fees and rate concessions for women and electric vehicles.
Lowest published starting rate: 7.60% (Car loan)
What to check before you choose a vehicle loan
- Ask for the Key Fact Statement (KFS). RBI requires loan providers to give you one before you sign, showing the interest rate, all fees, the APR and the total amount you will repay.
- Compare APR, not the headline rate. Processing fee, documentation charges and insurance change the real cost.
- Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
- Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
- Confirm the hypothecation. The loan provider's name is noted on the registration certificate. After the last EMI, collect the NOC and have it removed at the RTO.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources, method and last check
Every figure above comes from the loan provider's own website. We checked them on 4 October 2026 and list the pages used.
- Mahindra Finance: mahindrafinance.com/loans/car-loan · media.mahindrafinance.com/2025/02/Interest-Rate-Policy_Updated_21-July26_clean.pdf · mahindrafinance.com/loans/retail-loan-fees-and-charges · mahindrafinance.com/loans/used-car-loan · mahindrafinance.com/loans/three-wheeler-loan · mahindrafinance.com/loans/tractor-loan
- Punjab National Bank: pnb.bank.in/carloaninnerpage.html · pnb.bank.in/Retail-Advances-interst-rate-on-advances-linked-to-mclr.html · pnb.bank.in/service-charges-related-to-retail-advances.html · pnb.bank.in/pnbsaarthi.html · pnb.bank.in/PNB-GREEN-CAR-LOAN.html · pnb.bank.in/agriculture-credit-schemes.html
Method: we list only figures we could find on the loan provider's official pages. A blank means the loan provider does not publish that figure, and we never estimate one. Rankings use the published starting rate and published maximum tenure only. Read our editorial policy, how we make money and tell us about an error.
More loan provider comparisons
Mahindra Finance compared with other loan providers
Punjab National Bank compared with other loan providers
Compare any two or three loan providers · Personal loans · Home loans · Vehicle loans
Frequently asked questions
Which is better for a car loan: Mahindra Finance or Punjab National Bank?
On the car loan, Punjab National Bank starts lower at 7.60%, compared with 8% at Mahindra Finance. Punjab National Bank allows the longer maximum tenure (84 months). A starting rate is the best case, not a typical offer, so confirm the annual percentage rate (APR) and total repayable amount in each loan provider's Key Fact Statement. Figures are as published on the loan providers' own websites and checked 4 October 2026. The better choice depends on your profile, the loan amount and the fees in your offer letter.
Which has the lower car loan interest rate: Mahindra Finance or Punjab National Bank?
Punjab National Bank has the lower published starting rate. Published starting rates: Mahindra Finance 8% and Punjab National Bank 7.60% (checked 4 October 2026). Your actual rate depends on your credit profile and the loan provider's approval.
What is the processing fee on a car loan at Mahindra Finance and Punjab National Bank?
Mahindra Finance: Up to 2% of sanction amount (stated for non-Mahindra cars); not stated for Mahindra cars. Punjab National Bank: 0.25% of loan (min Rs 1,000, max Rs 1,500); nil documentation. Fees can change and GST is usually extra, so check the Key Fact Statement.
What is the maximum car loan tenure at Mahindra Finance and Punjab National Bank?
Mahindra Finance: 5 years. Punjab National Bank: 84 months.
What is the EMI on a ₹10 lakh car loan at Mahindra Finance and Punjab National Bank?
Over 60 months at each loan provider's lowest published rate: Mahindra Finance about ₹20,276 a month at 8%; Punjab National Bank about ₹20,086 a month at 7.60%. This is an illustration that leaves out fees, GST and insurance. Your offered rate may be higher.
How much of the vehicle price can I borrow on a car loan from Mahindra Finance and Punjab National Bank?
Mahindra Finance: Up to 100% of ex-showroom value. Punjab National Bank: 85% of on-road price (90% with manufacturer tie-ups); individuals up to Rs 100 lakh. Funding is usually profile-based, so the loan provider decides the final amount.
What other terms do Mahindra Finance and Punjab National Bank publish for a car loan?
Mahindra Finance: Finances most passenger and multi-utility vehicles across brands; No collateral security required. Punjab National Bank: 7.60% for women borrowers and e-vehicles; Digi Car Loan online option; Reimbursement for recently bought cars. Check each loan provider's page for eligibility and documents before you apply.
Can I prepay or foreclose a car loan early at Mahindra Finance and Punjab National Bank?
Mahindra Finance: 6% of principal outstanding in first 24 months, 3% thereafter; part-payment 5% (13-24 months) / 3% (after 24 months). Punjab National Bank: Floating: nil; fixed: 2% on amount prepaid (exceptions apply). Floating-rate loans to individuals cannot carry pre-closure charges; fixed-rate loans often do.
Which vehicle loans do Mahindra Finance and Punjab National Bank publish rates for?
Mahindra Finance: car loan, used car loan, three-wheeler loan, tractor loan, commercial vehicle loan. Punjab National Bank: car loan, two-wheeler loan, used car loan, electric car loan. Based on each loan provider's own website, checked 4 October 2026.
Are the rates on this page the rate I will get?
No. They are the rates the loan providers publish, usually a range or a starting rate. Your approved rate depends on your credit score, income, loan amount, tenure and vehicle. Always read the Key Fact Statement before you sign.
Does KhatuLoans lend money or charge for this comparison?
KhatuLoans is not a loan provider. The loan provider decides approval, rate and terms. Our comparisons are free to read, and we are not paid by the loan providers named here to rank them. See how we make money on our advertiser disclosure page.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.