The Punjab National Bank has reduced the interest rate on home loans worth over Rs 50 lakh by 50 basis points (0.50%). The public sector lender said home loans will now be issued at a rate of 6.60%, regardless of any higher maximum restrictions, and will be tied to the individual’s credit rating. This rate also applies to balance transfer, and it is the cheapest among public sector banks in India. The bank said it would give current and transferred customers additional home loans at a low interest rate. PNB grants 100% exemption from service fees and processing fees on home loans, auto loans, personal loans, retirement loans, MyProperty loans and gold loans as part of its Festival offering Bonanza.
PNB offers auto loans starting at 7.15%, while personal loans to the general public start at 8.95%, respectively. The RLLR linked to the external benchmark was also reduced from 0.25% to 6.55% by the NBI. According to the bank’s official statement, the Pension Indexed Lending Rate (RLLR) has been adjusted from 6.80% to 6.55%, effective September 17, 2021.
For home loans, PNB offers full exemption from initial / processing fees as well as documentation fees (from 01.09.2021 to 31.12.2021), as part of its PNB Festival Bonanza-2021 offer. The same offer is also applicable on mortgage loans on real estate (PNB my Property Loan), auto loans, Insta vehicle loans (for cars), PNB combined loans, personal loans, personal loans to retirees and gold loans.
Meanwhile, three big banks in our country, State Bank of India (SBI), Kotak Mahindra Bank and Bank of Baroda have also cut interest rates on their home loan programs to an all time high. Borrowers can now apply for a home loan for any amount at as low as 6.7% with a 45 basis point reduction thanks to the advent of seasonal offers from SBI. With effect from September 10, 2021, Kotak Mahindra Bank reduced its mortgage interest rates by 15 basis points (bps), from 6.65% to 6.50%. This excellent annual rate of 6.50% is only available from September 10 to November 8, 2021. The Bank of Baroda, on the other hand, grants a reduction of 0.25% on the current interest rate. BoB offers a 6.75% home loan and a 7.00% car loan, both valid until December 31, 2021. For more details, click here.
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Article first published: Saturday, September 18, 2021, 11:28 [IST]