PNB cuts interest rates on home, car loans

Punjab National Bank has reduced interest rates on housing loans by 25 basis points across the board.

The public sector lender has also reduced interest rates on car loans with tenure less than three years by 50 basis points.

The interest rate changes are effective from Monday. The reduced rates will be applicable to new as well as existing borrowers.

For housing loans less than Rs 75 lakh, the interest rate is pegged at base rate10.50 per cent a year, from 10.75 per cent at present.

In the case of home loans of Rs 75 lakh and above, the interest rate is at base rate +25 basis points (10.75 per cent), against 11 per cent a year at present.

For car loans, PNB has moved to a system where the interest rate is linked to the tenure of the loan. For loans with tenure of less than three years, the rate has been pegged at base rate plus 1 per cent (11.5 per cent).

In the case of car loans with tenure of three years and above, the rate will be at base rate plus 1.5 per cent (12 per cent).

Prior to the latest revision, car loans attracted an interest rate of 12 per cent a year irrespective of the tenure.

srivats.kr@thehindu.co.in