Punjab National Bank cut the interest rate on home loans worth more than Rs 50 lakh by 50 basis points (0.50 percent). The public sector lender has stated that home loans will henceforth be issued at a rate of 6.60 percent, regardless of any higher maximum restriction, and will be related to the individual's credit score. This rate applies to balance transfer as well, and it is the cheapest among public sector banks across India. The bank has stated that it would give current and balance transfer customers top-up home loans at a low-interest rate. PNB is giving a 100% waiver of service charges and processing fees on home loans, car loans, personal loans, pension loans, MyProperty loans, and gold loans as part of its Festival Bonanza Offer.
PNB offers auto loans starting at 7.15 percent, while personal loans to the general public commence at 8.95 percent, respectively. The external benchmark linked RLLR has also been reduced by 0.25 percent to 6.55 percent by PNB. According to the bank's official release, the repo-linked lending rate (RLLR) has been adjusted from 6.80 percent to 6.55 percent, effective September 17, 2021.
For housing loans, PNB is offering a full waiver of upfront/processing fees as well as documentation fees (from 01.09.2021 to 31.12.2021), under its PNB Festival Bonanza Offer-2021. The same offer is also applicable on Mortgage against Immovable Property (PNB my Property Loan), Car Loan, Insta Vehicle Loan (For Car), PNB Combo Loan Scheme, Personal Loan, Personal Loan to Pensioners, and Gold Loan.
Meanwhile, three leading banks of our country, State Bank of India (SBI), Kotak Mahindra Bank and Bank of Baroda have also slashed interest rates on their home loan schemes to a record low. Borrowers can now apply for a home loan for any amount at a rate as low as 6.7 percent with a 45 basis point reduction thanks to the advent of seasonal specials of SBI. With effect from September 10, 2021, Kotak Mahindra Bank has reduced its home loan interest rates by 15 basis points (bps), from 6.65 percent to 6.50 percent. This excellent 6.50 percent annual rate is only available from September 10 to November 8, 2021. Bank of Baroda, on the other hand, is giving a 0.25 percent reduction on the current rate of interest. BoB is offering a 6.75 percent home loan and a 7.00 percent car loan, both of which are valid until December 31, 2021. For more details click here.