Public sector, Punjab National Bank (PNB) slashes down its benchmark prime lending rate (BPLR) by 50 basis points to 11% from 11.5%. The new rate is immediately effective from May 1st.
PNB's move is expected to benefit all home, consumer and corporate loan borrowers as the reduction would be applicable to all existing accounts linked to BPLR.
The PLR cut would make the personal loan cheaper by 50 basis points floating home loan rates would come down by 25 basis points. The floating rate housing loan would now range from 8.75 % to 10% depending upon the loan amount and tenure, said the bank.
Also the threshold under the PNB Special Housing Loan Scheme has been raised to Rs 50 lakh. Home loans will be offered at 9% under the scheme for the limited period up to June 30th.
Further interest rate on Reverse Mortgage Scheme has also been reduced by 50 basis points and for education loans linked to BPLR, the rate has been revised down by 50 basis points.
At the same time the bank has also lowered its term deposit rates by 25 to 100 basis points across all the maturities. "The peak retail deposit rate for three years to less than five years has been reduced to 7.5 percent," said K.C. Chakrabarty, Chairman and Managing Director of PNB.
For term deposits up to 45 days, the reduction is up to 100 basis points, while the interest rates for fixed deposits up to two years have been slashed by 50 basis points.
This is the fifth time since October, when RBI started reducing key policy rates, PNB has brought down it BPLR.