Punjab National Bank (PNB) has announced a rate cut of up to 25 basis points for retail loans, following the Reserve Bank of India’s (RBI) reduction of the repo rate. This means that customers can now access loans at more affordable rates, similar to State Bank of India (SBI) and Bank of Baroda. The new rates will be applicable to various products, including home and auto loans, education loans, and personal loans.
The new interest rates at PNB are as follows: home loan rates have been slashed to 8.15%, with processing fees and documentation charges waived until March 31, 2025. Traditional Home Loan scheme starts at an interest rate of 8.15% per annum, with an EMI of Rs 744 per lakh. For auto loans, the rate is 8.50% with EMIs starting at Rs 1,240 per lakh. Additionally, PNB has lowered the minimum interest rate on Education Loans to 7.85%.
The bank is also offering a new facility for customers to apply for personal loans up to Rs 20 lakh digitally, without the need to visit a branch or submit paperwork. The new interest rates will take effect from February 10, 2025.
The rate cut by PNB follows SBI’s reduction of retail loan rates by 25 basis points earlier this month. The country’s central bank, RBI, had earlier cut the repo rate by 25 basis points to 6.25%. PNB’s decision is in line with the RBI’s RLLR (Repo Linked Lending Rate), which is the interest rate that banks use when lending to their customers. This rate is directly linked to the RBI’s repo rate and can go up or down based on changes in the country’s economic conditions. As a result, when RLLR drops, banks typically offer customers the option to lower their EMI or shorten the loan term.