Following the RBI, this government bank has also cut interest rates, which means your home loan EMI will now decrease..

If you are considering taking out a home loan, this news is for you. Following the Reserve Bank of India's (RBI) repo rate cut, another public sector bank, Punjab National Bank (PNB), has announced a reduction in its interest rates. The state-owned Punjab National Bank (PNB) has stated that it has reduced its repo-linked lending rate (RLLR). This reduction comes a day after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points.

In a filing to the stock exchange on Saturday, December 6, PNB stated that it is immediately revising its RLLR. The bank said that the PNB RLLR has been reduced from 8.35% to 8.10%, including an additional charge of 10 basis points. Since the RLLR is also linked to home loans, it is expected that home loan EMIs may also decrease. However, there has been no change in PNB's Marginal Cost of Lending Rate (MCLR) and base rate. PNB's rate cut follows the RBI's decision on Friday to reduce the repo rate by 25 basis points in its bi-monthly Monetary Policy Committee (MPC) meeting.

The six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, unanimously voted to cut the repo rate by 25 basis points to 5.25% and maintained a neutral stance, leaving room for further rate cuts. This is the central bank's fourth rate cut since February 2025.  The rates were left unchanged in the August and October MPC meetings.

What does the PNB RLLR rate cut mean?
The 25-point reduction in PNB's RLLR rate means that since it is linked to the RBI's repo rate, your home loan interest rate will also decrease. This means you will have to pay lower EMIs on your home loan. The RLLR rate is revised every three months. So, if your EMI started in October, the effect of this rate cut will be visible in January. PNB's decision comes after similar moves by other banks like Bank of India and Indian Bank, which had announced their new home loan interest rates. Indian Bank reduced its repo-linked lending rate from 8.20% to 7.95%, a decrease of 25 basis points.

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