Loans get cheaper as Punjab National Bank EMI for loan Decreases

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For the ease of the borrowers, Punjab National Bank EMI for loan is going cheaper and facilitating all the Indians. 

Punjab National Bank, which is India’s second-most popular publicly-owned lender has declared a diminution in their lending rates. The bank has always been favorable to its users in every means. Now they are making it easier for its customers to bear with the EMIs. The Bank frequently changes repo-based lending rates.  Reportedly, on July 1, PNB has decreased the repo rate (RLLR) by 40 bps.


Decrease in Punjab National Bank EMI for loan

The Punjab National Bank of India has initially fixed the rate at 7.05 %. But now, the lender has reduced it to 6.65%. PNB has even announced to lessen the subsidiary charge of funds-based lending rates or MCLR. According to the source, the state-owned lender has amended the MCLR rate descending by 15 basis points among all the borrowers. It seems that Punjab National Bank EMI for loan is going cheaper, and this is going to facilitate all the Indians. Here’s the table showing fall in the rate of Punjab National Bank EMI for loan:

MCLR Tenor

Existing  w.e.f:- 01.06.2020


7.20% 7.05%
1 month



3 month 



6 month



1 year



3 years




Other factors for fall in the rate of Punjab National Bank EMI for loan

As per the information of a press release, back on 1st July, the bank has decreased the deposit rate of its saving fund. The lending rates are reduced by 50 basis points with the highest of 3.25 %. 

  • Furthermore, in the case of deposits with the utmost rate of 5.50 %, the lender has dropped the rate of its term deposit. The bank declared this scheme on last Monday for numerous maturities pail efficiently.  
  • Moreover, Punjab National Bank EMI for loan has fixed something grand, especially for senior citizens. It is now offering the interest rate as high as 75 basis points. PNB has fixed the offer on all the valid certificate rates for every single maturity on the family deposits. However, the amount has to be up to INR 2 crore.
  • Moreover, this fall in the rate of Punjab National Bank EMI for loan has come after RBI has reduced the reverse repo rate. Besides, RBI has also reduced loan moratorium.

Moratorium Extended by RBI on Loans by 3 months

Other Banks Follow the suit

After PNB, several public sector banks have followed the suit and have reduced the repo rates. 

  • According to the reports, last week, UCO Bank and Bank of India (BOI) had diminished their EBLR or external benchmark lending rate.  The lending rate is interconnected with the repo rate through 40 basis points.
  • In this context, it is essential to note that the Bank of India has adjusted its external benchmark lending rate to 6.85 %. On the other side, the UCO Bank cut its repo- linked lending rate to 6.90 %.  
  • The reductions that the lenders have made in the repo-linked lending rate or RLLR pursue the Reserve Bank of India. RBI has made the first move in reducing the repo-based lending rate. It has modified the rate from 4.40 % to 4 % by 40 basis points.

Know more about:- RBI reduces the reverse repo rate.

After the statement of RBI released, most state-owned banks have tended to take the initiative of benefiting their users with a reduced repo rate. Punjab National Bank is one of the first banks in the country to fulfill it. All in all, the current move of the banks are really going to relieve the borrowers during this COVID-19 crisis.

However, the businessmen need to show complete ITR filing for availing any business loan from a bank. The government has already extended the due-date of ITR filing till 30th June 2020.

If you require any other sort of guidance with regard to the income tax return filing procedure, please feel free to contact our business advisors at 8881-069-069.

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