By News Desk 
In a welcome move for millions of customers, Punjab National Bank (PNB) has announced a significant reduction in loan interest rates, providing major financial relief to both existing and new borrowers.
PNB Lowers Lending Rates – A Big Win for Borrowers
PNB has revised its Repo Linked Lending Rate (RLLR) by 0.50%, bringing it down from 6% to 5.50%. This rate cut follows a similar adjustment made by the Reserve Bank of India (RBI), which recently reduced the repo rate to 5.50% after holding it steady at 6% for a prolonged period.
New Interest Rates Now in Effect
According to an official update shared by the bank on social media platform X (formerly Twitter), the revised lending rates have been made effective from June 9, 2025.
Updated Loan Interest Rates:
- Home Loans: New borrowers will now be charged an annual interest rate of 7.45%.
- Car and Business Loans: Customers applying for vehicle loans or small business loans will benefit from reduced EMIs due to the lowered rates.
Benefits for Both New and Existing Customers
Whether you’re a long-time PNB customer or planning to apply for a new loan, the revised rates are good news.
- Existing borrowers will see a reduction in their monthly EMI from the next billing cycle automatically.
- New applicants will enjoy more affordable loan options due to the lower interest rates.
Impact of RBI’s Policy Shift
The RBI had maintained the repo rate at 4% from May 2020 to April 2022, but raised it to 6.5% by early 2023. Now, for the first time in two years, the central bank has started reducing rates again—providing much-needed relief for homebuyers, car loan seekers, and small entrepreneurs alike.
Other Banks Also Cut Rates
PNB isn’t the only institution slashing rates:
- Bank of Baroda has reduced its repo-based lending rate from 8.65% to 8.15%, effective June 7, 2025.
- Bank of India also brought down its lending rate from 8.85% to 8.35%.
- Indian Bank decreased its benchmark linked lending rate from 8.70% to 8.20%, effective June 6, 2025.
Bottom Line:
With lending rates on the decline across major banks, now could be an ideal time to apply for a home, vehicle, or business loan. Borrowers stand to save significantly on their EMIs, thanks to this policy shift in the banking sector.