New Delhi: Public sector Punjab National Bank (PNB) on Thursday announced a cut in interest rates by 0.25 per cent on retail loans, including home and car loans.
The revised rates will be applicable across a wide range of products including home loans, car loans, education and personal loans, ensuring that customers continue to have access to a variety of financing options, PNB said in a statement.
On February 7, after a gap of five years, the Reserve Bank of India (RBI) reduced the repo rate (the rate at which banks borrow from the central bank) by 0.25 per cent to 6.25 per cent.
Following the interest rate cut, PNB has revised the home loan rate under various schemes to 8.15 per cent.
It said, “Customers can avail full waiver of upfront processing fee and documentation fee till March 31, 2025. In the traditional home loan scheme, the interest rate starts from 8.15 per cent per annum and the monthly installment is Rs 744 per lakh.
Regarding motor vehicle loans, it said the interest rate starts from 8.50 per cent per annum for financing both new and old cars and the monthly EMI is as low as Rs 1,240 per lakh.
To promote sustainable mobility, PNB is offering a concession of 0.05 per cent in interest rate starting from 8.50 per cent per annum and an initial EMI of Rs 1,240 per lakh.
“Customers can avail a longer repayment tenure of up to 120 months and enjoy financing of 100 per cent of the ex-showroom price. In case of education loan, the minimum card rate has been reduced to 7.85 per cent per annum,” it said.
Customers can avail personal loans up to Rs 20 lakh through a seamless digital process, eliminating the need for branch visits or paperwork. Revised rates start at 11.25 per cent.
PNB said the new rates are effective from February 10.
Earlier this month, State Bank of India (SBI) had cut interest rates on retail loans, including home loans, by 0.25 per cent in line with the RBI’s policy rate cut.
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