PNB Cuts Home, Car Loan Rates by 25–50 bps

Punjab National Bank (PNB), India’s second largest public sector bank, has reduced interest rates on housing loans by 25 basis points and those on car loan rates by 50 basis points.

The new interest rate on home loans up to less than Rs 75 lakh is same as the bank’s base rate of 10.50%. For home loans above Rs 75 lakh, the new rate stands at 10.75%.

The new rates on car loans are in the range of 11.50% to 12% depending on the tenor of the loan, as per a notification submitted to the Bombay Stock Exchange by the bank. The changes are effective from Sept. 3, 2012.