• Source:JND
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PNB Reduces Interest Rates On Loans: Days after the Reserve Bank Of India slashed the repo rate by 0.25 times, the public sector lender Punjab National Bank (PNB) on Thursday announced a reduction in interest rates on retail loans, including home and auto loans, by up to 25 basis points.

The revised rates will apply to a wide range of products such as car loans, education loans, home loans, and personal loans. The bank said that it would ensure customers have access to diversified financing options.

After a gap of five years, the Reserve Bank of India (RBI) on February 7 cut the repo rate (the rate at which banks borrow from the central bank) by 25 basis points to 6.25 per cent.

PNB revised loan rates

PNB revised the rate of home loans under various schemes to 8.15 per cent after the cut in interest rates. It said customers can avail full waiver of upfront processing fees and documentation charges till March 31, 2025. It said that the traditional home loan scheme offers an annual interest rate of 8.15 per cent and an EMI of Rs 744 per lakh.

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In the case of auto loans, the interest rate for financing new and used cars starts from 8.50 per cent per annum and EMIs range up to Rs 1 lakh. To encourage sustainable mobility, PNB is offering a 0.05 per cent subsidy on the introductory EMI rate, starting from 8.50 per cent per annum up to Rs 1 lakh.

Customers can avail of a longer repayment term of up to 120 months and enjoy 100 per cent financing of the ex-showroom price, it said. The minimum card rate has been reduced to 7.85 per cent per annum in the case of education loans.

Customers can withdraw Rs 1000 through a seamless digital process. It said personal loans up to Rs 20 lakh will be available, eliminating the need for branch visits or paperwork, and revised rates will start from 11.25 per cent.

Revised Rates Are Effective From February 10

The new rates will be effective from February 10, PNB said. Earlier this month, State Bank of India (SBI) had cut interest rates on retail loans, including housing, by 25 basis points in line with the RBI's policy rate cut.

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With Inputs From PTI