PNB, IOB Cut Lending Rates Sharply, Home Loans To Become Cheaper

New Delhi: Punjab National Bank (PNB) has slashed its lending rate linked to the repo rate by 0.75 percentage. The new rates will be effective from today.

“We have decided to pass on the full benefit of the recent RBI's policy rate cut,” PNB said in a statement.

The new rates are for retail and MSME borrowers. PNB cut the MCLR by 30 basis points across all tenors. The new rates will be applicable for the merged entity. PNB is merging Oriental Bank of Commerce and United Bank of India with effect from today.

Even Indian Overseas Bank has cut its lending rates linked to the repo rate by 0.75 percentage points. The new RLLR would be cut down from the present level of 8 percent to just 7.25 percent. The new rates will be effective from today. 

"Retail loans (housing, education, vehicle), loans to MSME, which are linked to RLLR, will now be available at cheaper rates," the bak said in a statement.

Indian Overseas Bank  cuts its one year MCLR to 8.25 percent from the present 8.45 percent. This rate will be effective 10 April.