After RBI, this government bank has cut rates, now your home loan EMI will be reduced!
Following the RBI's repo rate cut, this state-owned bank has reduced its RLLR from 8.35% to 8.10%. This is expected to reduce home loan EMIs, while the MCLR and base rate remain unchanged.
If you're considering a home loan, this news is for you. Following the RBI's repo rate cut, another state-owned bank, Punjab National Bank, has announced a reduction in its interest rates.
State-owned Punjab National Bank (PNB) announced it has reduced its repo-linked lending rate (RLLR). This reduction comes a day after the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points.
In a filing to the stock exchange on Saturday, December 6, PNB informed that it is immediately revising its RLLR. The bank said that the PNB RLLR has been reduced from 8.35% to 8.10%, which includes an additional charge of 10 basis points.
Since the RLLR is also linked to home loans, it is expected that home loan EMIs may also reduce. However, there has been no change in PNB's Marginal Cost of Lending Rate (MCLR) and Base Rate. PNB's rate cut comes after the RBI reduced the repo rate by 25 basis points in the bi-monthly MPC meeting on Friday.
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The six-member Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, unanimously voted to reduce the repo rate by 25 basis points to 5.25% and maintained a neutral stance, keeping open the possibility of further rate reductions.
This is the central bank's fourth rate cut since February 2025. Previously, rates were unchanged at the MPC meetings in August and October.
What does PNB RLLR rate cut mean?
The 25-point reduction in PNB's RLLR rate means that since it is linked to the RBI's repo rate, your home loan interest rate will also be lower. This means you will have to pay a lower EMI on your home loan.
The RLLR rate is revised every three months. This means that if your EMI started in October, the effect of this rate cut will be visible in January.
PNB's decision comes after other banks like Bank of India and Indian Bank announced their new home loan interest rates. Indian Bank reduced its repo-linked loan rate from 8.20% to 7.95%, a 25-point reduction.