PNB Slashes Interest Rates on Loans After RBI Rate Cut

Punjab National Bank (PNB) announced a reduction of up to 25 basis points on retail loan interest rates, effective February 10, including for housing and auto loans. This follows the RBI's repo rate cut. Benefits include no upfront fees and reduced rates for home, auto, and education loans.

State-owned Punjab National Bank (PNB) has announced a significant reduction in interest rates on its retail loans, including housing and auto loans, following the Reserve Bank of India's (RBI) decision to cut the repo rate after five years. The cuts, effective from February 10, 2023, are up to 25 basis points.

In a bid to pass on this benefit to its customers, PNB has revised rates across a wide spectrum of loan products. For home loans, customers can now take advantage of rates as low as 8.15% per annum, with no upfront processing fees until March 31, 2025. Auto loans start at 8.50%, with provisions for 100% financing of the ex-showroom price.

Educational loans also see a reduction, with rates now starting at 7.85%. Personal loans can be availed through a completely digital process, with interest rates from 11.25%. These changes come after a similar announcement by the State Bank of India earlier in the month.

(With inputs from agencies.)