PNB's gift: Home-car loan EMI will be reduced, and loan takers will get benefit

During Corona, RBI kept the repo rate at four percent from May 2020 to April 2022. But the central bank then increased the repo rate to 6.5 percent.

After a big cut of 50 basis points in the repo rate by RBI, Punjab National Bank has decided to cut loan interest rates giving relief to its customers. PNB has now reduced the repo linked landing rate i.e. RLLR by 50 basis points. Giving information about this decision by the bank on the social media platform X, it has been told that the new interest rates will be effective from June 9 of this month.

That is, after this decision of the bank, home loan will start from 7.45 percent per annum while vehicle loan will start from 7.80 percent per annum. It is believed that this move of PNB will reduce the EMI of customers taking car loans, home loans and small business loans.

Customers will get benefit

During Corona, RBI kept the repo rate at four percent from May 2020 to April 2022. But the central bank then increased the repo rate to 6.5 percent. However, for the last two years, RBI has cut interest rates and continuous cuts have been seen for the last three times. This decision of RBI has benefited small businessmen including car and home buyers.

After this announcement of PNB, the EMI of customers whose loans are already linked to RLLR will automatically come down in the next billing.

Many banks reduced landing rate

It is worth noting that after the new cut in the repo rate by RBI, many banks have decided to cut the landing rate. HDFC had cut the MCLR on June 7 itself. Bank of Baroda has reduced the Baroda Repo Based Lending Rate from 8.65 percent to 8.15 percent. Apart from this, Indian Bank has also reduced the RBLR i.e. Repo Linked Benchmark Landing Rate from 8.70 percent to 8.20 percent.