Leading PSB Punjab National Bank has slashed its lending rates w.e.f. June 1, 2020. The bank has reduced Repo Linked Lending Rates by 40 basis points and MCLR by 15 basis points on Loans and Advances across all tenors. The new RRLR stands at 6.65 per cent, while the one-year MCLR Rate is 7.60% p.a.
With this latest lending rate cut, the PNM has passed on complete rate reduction benefit of RBI’s policy rate cut on May 27 to its customers. Thus all new as well as existing customers can avail of the benefits of reduced rate of interest on retail loans like Personal Loan, Car Loan, Education Loan, Home Loan etc. The existing customers can choose to reduce or tenure said the PNB.
The Repo Linked Lending Rates are linked to external benchmark i.e. repo rate a s regulated by RBI. From October 1, 2019 all retail & MSME loans on flexible rate structure are linked to repo rates. The MCLR is based on internal benchmarks and banks themselves decide the rate based on their financials.
In current market situation, the RBI has been pushing banks to ease borrowing. Earlier SBI, HDFC Bank, ICICI bank & many PSBs have also reduced lending rates.
Due to changing financial climate of economy, the PNB has also reduced its Savings Bank Account deposit rates by 50 basis points with effect from July 1. Furthermore, the bank has also reduced its term deposit rates. The maximum PNB FD rate is now 5.50 per cent with effect from June 1, 2020.
Like all other leading banks, PNB is also offering a higher interest rate of 75 bps over rate to senior citizens. The customers can also opt for Senior Citizens Savings Scheme (SCSS) through PNB.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
Director- MyMoneyMantra FinTech| A senior retail and commercial banking professional, adept at handling Business Development, Sales Planning & Growth, Product Strategy, Marketing Operations and Client advisory services phygitally.
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