PSB Cuts Home, Auto Loan Rates by up to 0.75%

State-owned lender Punjab & Sind Bank (PSB) announced a cut in home and auto loans for new borrowers by up to 0.75% on April 17, 2012.

The announcement coincided with the RBI's annual credit policy which reduced the benchmark lending rate by 0.5% to 8%.

In home loan, interest rates have been reduced between 0.25–0.50% while for auto loan it varies between 0.25–0.75% depending on maturity and amount borrowed.

The bank offered home loan to its customer between 11–12.75% prior to reduction. At the same time, auto loan rate varied between 12.75–13.75%.

The new rates have become effective from April 1.

The EMI for auto loan is lowest at Rs 1,765 per lakh for the longest repayment period up to 7 years.

The bank is offering home loan at lowest EMI of Rs 1,016 per lakh (up to loan amount of Rs 30 lakh) with longest repayment period up to 25 years and no prepayment charges are levied.

No advance EMI are required to be deposited and interest is charged on daily reducing Balance basis.