Mumbai, Feb 21: State-owned Punjab National Bank (PNB) on Thursday announced reduction in interest rates by up to 25 basis points on retail loans, including housing and auto loans, following the RBI rate cut.The revised rates apply to a wide range of products, including home loans, car loans, education and personal loans, ensuring that customers continue to receive diverse financing options, PNB said in a statement.
After a gap of five years, the Reserve Bank of India (RBI) reduced the repo rate, the rate at which banks borrow from the central bank, by 25 basis points to 6.25 per cent on February 7.
Following the rate cut, PNB has revised the home loan rate to 8.15 per cent under various schemes. Customers can benefit from a complete waiver of upfront processing fees and documentation charges till March 31, 2025, it said.
The traditional home loan scheme offers rate of interest starting from 8.15 per cent per annum with an EMI of Rs 744 per lakh, it said.
With regard to auto loan, it said, for financing both new and used cars, the rate starts from 8.50 per cent per annum with EMIs as low as Rs 1,240 per lakh.
To promote sustainable mobility, PNB offers a 0.05 per cent concession in rate starting from 8.50 per cent per annum and starting EMI of Rs 1,240 per lakh.
Customers can benefit from a longer repayment tenure of up to 120 months and enjoy 100 per cent financing of the ex-showroom price, it said.
In the case of education loans, the minimum card rate has been reduced to 7.85 per cent per annum.
Customers can avail personal loan up to Rs 20 lakh through a seamless digital process, eliminating the need for branch visits or paperwork, it said, adding the revised rate starts from 11.25 per cent.
The new rates are effective from February 10, PNB said.
Earlier this month, State Bank of India (SBI) had slashed interest rate on retail loans including housing by 25 basis point in alignment with RBI policy rate reduction.