PNB Makes Home And Car Loans Cheaper From June 9 Following RBI Rate Cut

News18

8 hours ago

Last Updated:
Effective from June 9, 2025, PNB's revised lending rates will make EMIs significantly more affordable for both existing and new borrowers.
PNB Home Loan New Rate: Punjab National Bank (PNB), one of India's leading public sector lenders, has announced a sharp reduction in its lending rates, offering much-needed relief to borrowers. The bank has revised its Repo Linked Lending Rate (RLLR) downward by 50 basis points (bps), following the Reserve Bank of India's (RBI) recent decision to cut the repo rate by 50 bps.
With this recent cut, the repo rate— the interest rate at which the RBI lends to banks— now stands at 5.50 percent, down from 6 percent. This marks the third interest rate cut by the RBI since the COVID-19 pandemic. Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent.
New Rates Effective From June 09
Effective from June 9, 2025, PNB's revised lending rates will make EMIs significantly more affordable for both existing and new borrowers. As per the bank's latest update on social media platform X, the new rates are:
Home Loans starting from 7.45% per annum
Vehicle Loans starting from 7.80% per annum
Lower lending rates mean cheaper access to credit, allowing consumers to save more on interest payments over the loan tenure.
Borrowers with existing loans linked to RLLR will automatically see their EMIs reduced in the coming billing cycle, while new borrowers can now avail loans at significantly lower rates. The rate cut is particularly beneficial for homebuyers, car loan applicants, and small business owners who rely on institutional finance.
Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent. From April 2022 to February 2023, the RBI gradually increased the policy rates to 6.5 percent, maintaining this rate for two years until the recent reductions.