Public sector banking giant Punjab National Bank (PNB) has announced a significant reduction of 0.25 percent in interest rates on various retail loans, including home loans and vehicle loans. The bank’s statement confirmed that the revised interest rates would apply to multiple loan categories such as home loans, car loans, education loans, and personal loans. This decision comes in response to the Reserve Bank of India’s (RBI) move to cut the repo rate by 0.25 percent to 6.25 percent on February 7, marking the first such reduction in five years.
Home Loan Rates Slashed to 8.15 Percent
Following the interest rate revision, PNB has adjusted its home loan rates to start from 8.15 percent under various schemes. Additionally, the bank is offering a full waiver on advance processing fees and documentation charges for customers availing home loans until March 31, 2025. Under the standard home loan scheme, the interest rate begins at 8.15 percent per annum, translating to an EMI of Rs 744 per lakh.
Vehicle Loan Rates Start at 8.50 Percent
PNB has also introduced competitive rates for vehicle loans. The interest rate for financing both new and used cars now starts from 8.50 percent per annum. Customers can enjoy an affordable EMI as low as Rs 1,240 per lakh. The bank is providing a 0.05 percent concession on vehicle loan interest rates, along with flexible repayment options extending up to 120 months. Furthermore, PNB offers up to 100 percent financing of the vehicle’s ex-showroom price.
Education Loan Rate Lowered to 7.85 Percent
In a move to support students, PNB has reduced the minimum interest rate on education loans to 7.85 percent per annum. This rate cut aims to make education financing more accessible to aspiring students.
Personal Loans up to Rs 20 Lakh with Digital Processing
PNB is simplifying the personal loan process by offering loans up to Rs 20 lakh through a fully digital and paperless system. Customers can apply for personal loans without visiting a branch. The interest rates for personal loans now start at 11.25 percent per annum.
Effective Date of New Interest Rates
The revised interest rates have come into effect from February 10, 2025. This rate reduction follows a similar step by the State Bank of India (SBI), which had earlier reduced its retail loan interest rates, including home loans, by 0.25 percent in alignment with the RBI’s monetary policy adjustment.
Bottom Line
The latest rate cuts by PNB are expected to provide relief to borrowers, making home, vehicle, education, and personal loans more affordable. Customers can take advantage of these revised rates and additional benefits to meet their financial needs efficiently.