GNP cuts mortgage rate above Rs 50 lakh by 50 basis points, Real Estate News, ET RealEstate
“In a series of offers launched by the Punjab National Bank during the festival season, the PNB reduced by 50 basis points (0.50%) the interest rate on mortgage loans above Rs 50 lakh.
“PNB has announced that home loans are now offered at 6.60% regardless of any upper limit,” he said in a statement.
The public lender said the rate would be tied to the applicant’s credit rating.
“This rate is also applicable to balance transfer cases and is the lowest among public sector banks,” he said.
In addition, it will offer complementary home loans at an attractive interest rate to existing cases as well as balance transfer cases.
PNB said it already offers full service fee / processing fee waiver on home, auto, personal, pension, myProperty and gold loans as part of its “Festival Bonanza offering”.
While the car loan starts at 7.15%, the personal loan starts at 8.95%, which is one of the lowest in the industry, he added.
The lender said the home loan would become more affordable for customers given the total waiver of service charges and a low interest rate starting at 6.60%.
Earlier today, PNB also reduced the RLLR linked to the external benchmark from 0.25% to 6.55%.
“The Repo Loan Rate (RLLR) increased from 6.80% to 6.55%, effective September 17, 2021 (Friday),” PNB said in a regulatory filing.
The RLLR was introduced in October 2019. It is a variable rate personal or retail loan linked to external benchmarks, such as the Reserve Bank of India (RBI) repo rate.