Big news for PNB customers. Punjab National Bank (PNB) has just announced a 25 basis points cut in interest rates for retail loans, which includes home and auto loans. This move comes on the heels of the Reserve Bank of India’s decision to lower the repo rate by the same amount.
Changes in interest rates for various loans
In their statement, PNB mentioned that the reduced rates apply to home loans, car loans, education loans, and personal loans, giving customers a range of financing options. The RBI’s repo rate was cut from 6.50% to 6.25% on February 7, marking the first reduction in five years.
Home loan rates now at 8.15%
With the new interest rates, PNB has set the home loan rate at 8.15% across different schemes. They’re also waiving the upfront processing fee and documentation charges until March 31, 2025. For the standard home loan scheme, the interest starts at 8.15% per annum, with monthly payments of Rs 744 per lakh.
Auto loan rates starting at 8.50%
For auto loans, PNB has set the interest rates for both new and used cars starting at 8.50% per annum, with EMIs as low as Rs 1,240 per lakh. To encourage eco-friendly transportation, they’re offering a 0.05% discount on the interest rate, starting at 8.50% per annum, with an initial EMI of Rs 1,240 per lakh.
Customers can take advantage of a repayment period that stretches up to 120 months and get financing for the full ex-showroom price. For education loans, the minimum interest rate has been lowered to 7.85% per year. Personal loans of up to Rs 20 lakh are available through a smooth digital process, so there’s no need to visit a branch or deal with paperwork.
The new interest rates start at 11.25%. These updated rates will kick in on February 10, according to PNB. Earlier this month, the State Bank of India (SBI) also reduced interest rates on retail loans, including home loans, by 25 basis points following the RBI’s policy rate cut.