PNB cuts interest rates

New Delhi: Punjab National Bank (PNB) has reduced its rate of interest on housing loans, bringing it down to one of the lowest in the banking industry.

The rate of interest for floating rate loans for a 10-year period has been set at 7.5 per cent. For loans for 10-20 years the bank has reduced the interest by 1.5 per-cent to 7.75 per cent. The bank has said that the offer is for a limited period for loans contracted between 1 December and 31.

This offer, coupled with an announcement of a repayment holiday of 18 months to all prospective borrowers, where only the interest component of the loan will have to be paid during the period, translates into one of the lowest equated monthly installments (EMI) of Rs 625 per lakh during the repayment holiday for loans repayable up to 10 years and an EMI of Rs 646 per lakh for loans repayable above 10 years.