In a major relief to borrowers, state-owned Punjab National Bank (PNB) has announced a reduction in its Repo Linked Lending Rate (RLLR) from 8.85% to 8.35% following the Reserve Bank of India’s decision to cut the repo rate by 50 basis points to 5.5% on June 6, 2025.
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The move is set to lower Equated Monthly Installments (EMIs) significantly, especially for home and vehicle loans. Borrowers may see their EMIs drop by over Rs. 1,500 per month, providing substantial financial relief to households and further improving affordability in the housing sector.
According to PNB’s filing with the stock exchanges, the revised RLLR — which includes a Business Strategy Premium (BSP) of 20 basis points — will come into effect from June 9, 2025. However, the bank clarified that its Marginal Cost of Lending Rate (MCLR) and Base Rate will remain unchanged for now.
With this revision, PNB’s home loans now start from 7.45% per annum, while vehicle loans are available at interest rates beginning from 7.80% per annum. Personal loans and MSME loan products linked to the RLLR will also benefit from the lower benchmark rate.
The bank’s latest rate cut is expected to boost credit uptake among salaried individuals, first-time homebuyers, and small businesses, while also injecting positive momentum into the real estate and automobile sectors.
Financial experts anticipate that this move will not only ease the burden on existing borrowers but also encourage new lending, helping accelerate broader economic growth.
Punjab National Bank
Punjab National Bank (PNB) is India’s second-largest public sector bank, offering a wide range of financial services across retail, corporate, and international banking. Established in 1894, PNB plays a pivotal role in the country’s banking landscape with a strong nationwide presence.
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