Punjab National Bank (PNB) has cut interest rates on retail loans by up to 25 basis points. Home loans will now start at 8.15% and auto loans at 8.50%. Electric vehicles will get an additional discount of 0.05%. Education loans will start at 7.85% and personal loans at 11.25%. The new rates are effective from February 10.
PNB Interest Rate Cut: The country’s leading public sector bank Punjab National Bank (PNB) has given a big gift to its customers by reducing the interest rates by 0.25 percent (25 basis points). This move of the bank will make car, home, education and personal loans cheaper. The new rates reduced by the bank have come into effect from February 10. Earlier, State Bank of India (SBI) had also reduced retail loans by 25 basis points. This reduction has been done after the reduction in repo rate by the Reserve Bank of India (RBI).
New rates will be applicable on these loans
According to PNB, the new rates will be applicable on many products including home loans, car loans, education and personal loans. The bank said that customers can avail full waiver in processing fees and documentation charges till March 31, 2025.
What are the new interest rates
PNB has started the home loan interest rate at 8.15 per cent per annum, in which EMI of Rs 744 per lakh will have to be paid. The auto loan rate starts at 8.50 per cent per annum, in which EMI of Rs 1,240 per lakh will have to be paid. The bank is providing an additional discount of 0.05 per cent for electric vehicles. Apart from this, customers will get the facility of repayment period up to 120 months and 100 percent financing. The minimum interest rate for education loan has been fixed at 7.85 per cent per annum. At the same time, under personal loan, customers can take a loan of up to Rs 20 lakh, whose interest rate starts from 11.25 per cent per annum.
RBI had cut 25 basis points
The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on February 7 cut the key policy rate repo rate by 25 basis points (bps) from 6.50 percent to 6.25 percent. This rate was stable for the last two years and it was cut for the first time in about five years.
