PNB– Big relief for common people. Public sector Punjab National Bank (PNB) on Friday announced a reduction in its loan rates by 50 basis points i.e. 0.50%. This will make loans cheaper for existing and new customers of PNB and provide relief in EMIs.

PNB wrote in a post on social media platform X, ‘Good news for our customers! EMI will now be even more affordable. Following RBI’s repo rate cut (from 6% to 5.5%), PNB has also reduced its repo linked lending rate by 50 basis points, which will be effective from June 9, 2025.’

Home loans, vehicle loans will become cheaper, there will be relief in EMI

After this cut, the bank’s home loan will start at 7.45% per annum, while vehicle loan rates will start from 7.80%. Earlier in the day, keeping in mind inflation and economic slowdown, the RBI cut the policy interest rates (repo rate) by a more-than-expected 50 basis points. Along with this, the Cash Reserve Ratio (CRR) for banks was also cut by 1%, due to which banks have available additional cash of Rs 2.5 lakh crore.

Reserve Bank reduced repo rate to 5.5%
The six-member monetary policy committee (MPC) of the RBI, headed by Governor Sanjay Malhotra, decided to reduce the repo rate by 5-1 to 5.5%. With this, a total of 1% (100 basis points) has been cut in 2025 so far – RBI had also cut 25-25 basis points in February and April.