In the housing loan segment, interest rate has been reduced by 0.25% while interest rate on car loans has been slashed by 0.5% effective today
New Delhi: State-owned lender Punjab National Bank (PNB) slashed interest rates on home and car loans by up to 0.5%, reports PTI.
In the housing loan segment, the rate has been reduced by 0.25% while interest rate on car loans has been slashed by 0.5% effective today.
The decision to lower rate comes within days of finance minister P Chidambaram asking PSU banks to cut interest rates with a view to boosting sales of consumer goods and promoting growth. The minister had cited the example of SBI on how EMI reduction boosted the sales of cars.
Home loans of up to Rs75 lakh would now attract an interest rate of 10.50% or the base rate. Earlier, the interest rate was base rate plus 0.25% amounting to 10.75%, PNB said in a statement.
Similarly, the rate has been reduced for home loans above Rs75 lakh to 10.75% from 11% earlier.
With regard to car loans, three-year loans would now be available at 11.50% against 12%, down by 0.5%.
Car loans above three years would also attract 0.5% lower rate at 12% compared to 12.50% earlier, it said.
Last month, another public sector lender Central Bank of India had announced it will cut interest rates on housing and other loans by up to 0.5% from 1st September.
Last week, Corporation Bank slash interest rates on home, car and educational loans for a limited period of three months. The bank also decided to waive the processing fee for these loans.
Interest rates for Corp Home Housing loan for up to Rs50 lakh is 10.50%. The new rates is 10.75% for loans up to Rs1 crore and 11% for loans exceeding Rs1 crore. The bank was earlier charging 11.25% interest on home loans.