PNB BANK LOAN: There is a big relief news for millions of customers of the country! Punjab National Bank (PNB) has announced a cut in its loan interest rates, which will give unprecedented benefits to its customers. The bank has made a significant reduction in its Repo Linked Lending Rate (RLLR) by a full 50 basis points i.e. 0.50%.
This important decision has been taken after the Reserve Bank of India (RBI) recently reduced the Repo Rate from 6% to 5.50%. This simply means that now the monthly installment (EMI) on your home loan, car loan, and small business loans will be reduced, which will ease the burden on your pocket.
New rates effective from June 9, 2025
PNB has informed on the social media platform ‘X’ (formerly Twitter) that the new interest rates have become effective from June 9, 2025 (Tuesday). Now the interest rates on different types of loans available from the bank will be as follows:
Home Loan: – Now starting from 7.45% per annum.
Vehicle Loan: – Now starting from 7.80% per annum.
With this reduction, customers who have already taken home loans, car loans, and small business loans linked to RLLR, as well as those who are planning to take new loans, will all get the direct benefit of lower EMI. This will help balance your monthly budget and give you more space to fulfill your financial aspirations.
Both old and new customers will get the benefit
It is an extremely positive aspect that not only new customers will benefit from this decision of PNB, but existing customers will also benefit from it.
For customers whose loans are already linked to RLLR, their EMI will be automatically reduced in the next billing cycle. You will not need to do anything separately for this. At the same time, those who are now thinking of taking a new loan will get the loan at a lower interest rate than before. This is a great opportunity for those who are planning to buy a house or buy a car.
Wide impact of change in repo rate
The Reserve Bank of India (RBI) kept the repo rate stable at 4% during the Covid pandemic (from May 2020 to April 2022). After this, the repo rate was gradually increased to 6.5% from April 2022 to February 2023. Now after two years, RBI has again started cutting interest rates. This decision of RBI will prove to be very beneficial not only for individual borrowers but also for the broader economy. By cutting interest rates:
Home buyers will get the benefit of lower EMI, which will increase demand in the real estate sector.
Buying a car will become more affordable for car loan takers, which will boost the automobile sector.
Small businessmen will get loans at affordable rates, which will enable them to expand their business and create employment opportunities.
Other major banks have also reduced interest rates
PNB is not the only bank that has cut interest rates. Many other major banks of the country have also announced reductions in their rates after RBI’s repo rate cut:
Bank of Baroda: – It has reduced its Baroda Repo Based Lending Rate (BRLLR) from 8.65% to 8.15%. This new rate is effective from 7 June 2025.
Bank of India (BOI):- BOI has reduced its repo-based lending rate (RBLR) from 8.85% to 8.35%. This new rate is effective from 6 June 2025.
Indian Bank:- Indian Bank has reduced its repo-linked benchmark lending rate (RBLR) from 8.70% to 8.20%. This new rate is also effective from 6 June 2025.
HDFC Bank:- Apart from these public sector banks, the country’s largest private sector bank HDFC has also reduced its MCLR (Marginal Cost of Funds Based Lending Rate) on 7 June, making some of its loans cheaper.