Punjab National Bank Cuts Lending Rates by 50 bps After RBI Repo Rate Drop
Punjab National Bank (PNB) has reduced its lending rates by 50 basis points, making loans cheaper for its customers. The move follows the Reserve Bank of India’s decision to cut the repo rate from 6% to 5.5% during its latest monetary policy review.
The new rates will come into effect from June 9, 2025. The bank confirmed the update through an official post on X, sharing that its Repo Linked Lending Rate (RLLR) will now be revised to reflect the central bank’s rate cut.
This means borrowers can expect lower EMIs across home loans, car loans, and personal loans. PNB home loans will now start from 7.45% per annum, and vehicle loans from 7.80% per annum, offering much-needed relief to individuals and families planning major purchases.
The RBI’s repo rate cut, announced on June 6 by Governor Sanjay Malhotra, is the sharpest since the pandemic-era cuts in March 2020. Alongside the rate cut, the RBI also slashed the cash reserve ratio (CRR) by 100 basis points to 3%, releasing over Rs 2.5 lakh crore into the banking system. The goal is to boost lending, support economic activity, and improve credit flow across sectors.
PNB’s rate reduction is expected to benefit first-time homebuyers, salaried professionals, and small businesses seeking affordable loans.
Also Read:- Bank of Baroda Lowers Lending Rate by 50 Basis Points After RBI Repo Cut
Real estate experts have welcomed the move. Amit Bhagat, Co-Founder and CEO of ASK Property Fund, said, “These rate cuts will strengthen homebuyer confidence, especially in the affordable housing segment.”
As more banks are expected to follow suit, customers are advised to stay alert to announcements from other major lenders like SBI, Canara Bank, and HDFC Bank.
This latest move makes it a good time for borrowers to revisit their financial plans and take advantage of reduced interest rates.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
