PNB Cuts Interest Rates on Retail Loans Following RBI Repo Rate Reduction
Punjab National Bank announces a reduction in interest rates on home, car, education, and personal loans by up to 25 basis points, following the RBI’s recent repo rate cut. New rates take effect from February 10.
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After almost five years, the Reserve Bank of India recently reduced the repo rate. Following this, banks are also revising their lending rates accordingly.
Recently, the state-owned banking giant, State Bank of India, reduced its interest rates. Now, another government bank, Punjab National Bank (PNB), has taken the same decision.Punjab National Bank announced on Thursday that it is reducing interest rates on retail loans by up to 25 basis points.
The bank has stated that the new interest rates will be implemented from February 10. This reduction will apply to home loans, car loans, education loans, and personal loans. With the latest revision, the starting rate for home loans at PNB has come down to 8.15 percent. As a result, the EMI for a loan of Rs. 1 lakh will be Rs. 744, the bank said.
The interest rate on automobile loans will start at 8.50 percent. PNB also stated that the minimum interest rate on education loans has been reduced to 7.85 percent. The revised interest rate on personal loans is 11.25 percent.
It is known that on February 7, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points, from 6.50 percent to 6.25 percent. As a result, many banks are revising the interest rates on their loans. Last week, SBI reduced the External Benchmark-Based Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points.
