PNB Loan Benefits: Punjab National Bank (PNB), one of the largest public sector banks in the country, has given great news to its customers. The bank has reduced its external benchmark linked rate (EBLR) from Saturday, March 1, 2025.

This means that now all new floating rate loans offered by the bank will be linked to EBLR and whenever there is a change in EBLR, it will have a direct impact on the EMI. In such a situation, now the EMI of the loan takers will be reduced or they can increase the tenure of their loan. This change will prove to be a big relief for the loan takers.

New rates linked to T-Bills and repo rate

According to Punjab National Bank, from yesterday i.e. March 1, 2025, the bank has changed the EBLR rates linked to two major benchmark rates – Treasury Bills (T-Bills) and Repo Rate. The reduction in these rates can provide relief to the borrowers.

Actually, this can reduce the EMI of the loan or increase the loan tenure. Provided they shift their loan under EBLR. This change will bring a big financial benefit to the customers.

Option to shift to EBLR

At the same time, PNB has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05% from March 1, 2025. The MCLR rate was earlier used as a benchmark rate and it set the minimum rate for the bank to lend.

However, customers taking old floating rate loans are now given the option that they can shift their loan rate from MCLR to EBLR system. Which can give them good benefits. This option will allow customers to improve their financial position.

New rates for different periods

Let us tell you that the overnight MCLR rate was earlier 8.35 percent, which has now become 8.4 percent, while the one-month MCLR rate was earlier 8.45 percent, which has now become 8.5%. Apart from this, the 6-month MCLR rate was earlier 8.65%, which has now become 8.7%, while the 6-month MCLR rate was earlier 8.85%, which has now become 8.9 percent.

At the same time, the 1-year MCLR rate was earlier 9 percent, which has now become 9.05%, while for 3 years this rate was earlier 9.3 percent, which has now become 9.35%. These rates will help customers understand their loan plans.