PNB Cuts Loan Rates

PNB Cuts Loan Rates by 0.50%: Home and Car Loans Get Cheaper from June 9

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New Delhi, June 9, 2025 — In a major relief for borrowers across the country, Punjab National Bank (PNB) has announced a reduction of 50 basis points (0.50%) in its Repo Linked Lending Rate (RLLR). The decision follows the Reserve Bank of India’s (RBI) move to cut the repo rate from 6.00% to 5.50%, paving the way for lower interest rates across the banking sector.

The revised rates from PNB are effective from today, June 9, 2025, and apply to both new and existing customers.

New Interest Rates for Loans

As per PNB’s official update on X (formerly Twitter), the latest loan rates are as follows:

  • Home Loans: Now starting from 7.45% per annum

  • Vehicle Loans: Now starting from 7.80% per annum

This change will directly benefit millions of PNB customers with loans linked to the RLLR. Borrowers will see a reduction in their monthly EMIs (Equated Monthly Installments), easing financial pressure and allowing for better monthly budget management.

Existing Borrowers Also to Benefit Automatically

A key highlight of PNB’s move is that existing borrowers with loans tied to the RLLR do not need to take any separate action. Their EMIs will be automatically recalculated based on the reduced interest rates in the upcoming billing cycle. For new applicants, this is an opportune time to take advantage of lower rates, especially for those planning to buy a house, vehicle, or expand their business.

RBI’s Repo Rate Cut Triggers Sector-Wide Impact

This move by PNB comes as part of a larger banking sector response to the RBI’s decision to reduce the repo rate, which marks the first rate cut in two years. During the pandemic, the repo rate was maintained at 4%, then gradually increased to 6.5% as part of inflation control measures. Now, as the RBI initiates a softening in its policy stance, borrowers are expected to benefit across the board.

The interest rate cuts are expected to:

  • Stimulate home loan demand, boosting the real estate sector

  • Make car loans more affordable, encouraging growth in the automobile market

  • Provide cheaper credit for small businesses, supporting expansion and job creation

Other Major Banks Follow Suit

PNB is not alone in slashing rates. Several other prominent banks have also revised their lending rates downward in response to the repo rate cut:

  • Bank of Baroda: Reduced BRLLR from 8.65% to 8.15% (effective June 7, 2025)

  • Bank of India (BOI): Cut RBLR from 8.85% to 8.35% (effective June 6, 2025)

  • Indian Bank: Reduced RBLR from 8.70% to 8.20% (effective June 6, 2025)

  • HDFC Bank: Announced reductions in its MCLR-based loans starting June 7

These reductions across public and private sector banks mark a nationwide trend of easing credit costs, offering welcome relief for borrowers and encouraging new demand in core economic sectors.

Conclusion

Punjab National Bank’s rate cut is a strong signal of economic revival and consumer-centric reform. With lower EMIs and easier access to credit, both individuals and businesses are poised to benefit. Whether you’re planning to purchase your dream home, upgrade to a new car, or scale your enterprise, now may be the best time to borrow — affordably and confidently.

PNB Cuts Loan Rates

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Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.