Big news for common people. Punjab National Bank (PNB), the second largest government bank, has made borrowing more affordable for its customers by reducing interest rates on retail loans by up to 25 basis points. This decision follows the recent repo rate cut by the Reserve Bank of India (RBI).
PNB has lowered interest rates on various loan types, including home loans, car loans, education loans, and personal loans. The bank stated that this move aims to offer customers a wider range of financial options.
On February 7, the RBI cut the repo rate by 25 basis points to 6.25%, marking the first reduction in five years. The repo rate is the interest rate at which banks borrow from the RBI, and this decrease allows banks to offer lower rates to their customers.
What are the new interest rates for different loans?
For home loans, PNB has set the interest rate at 8.15% under various schemes, with EMIs starting at Rs 744 per lakh.
Car loans for both new and used vehicles will have an interest rate starting at 8.50% per annum, with EMIs beginning at Rs 1,240 per lakh. Additionally, to encourage sustainable mobility, PNB is providing an extra discount of 0.05% on car loans.
Customers can also apply for personal loans up to Rs 20 lakh through a digital process, with revised interest rates starting at 11.25% per annum.
No processing fees or documentation charges
PNB has announced that customers can secure loans without any paperwork. The bank is waiving processing fees and documentation charges until March 31, 2025. These new rates will take effect from February 10. Earlier this month, the State Bank of India (SBI) also reduced interest rates on retail loans, including home loans, by 25 basis points.
