State-owned Punjab National Bank reduces gold loan rates

State-owned Punjab National Bank (PNB) on Wednesday slashed the interest rate on loans against gold jewellery and Sovereign Gold Bond by 145 basis points or 1.45 percentage points as part of its festive offer.

PNB now offers loans against Sovereign Gold Bond (SGB) at 7.20 per cent and loans against gold jewellery at 7.30 per cent, the bank said in a statement.

Additionally, it said, PNB has slashed the home loan rate which now starts from 6.60 per cent, while customers can avail car loans starting from 7.15 per cent and personal loans from 8.95 per cent, one of the lowest in the industry.

During the festive season, PNB is also offering a full waiver of service charges/processing fee on the loans against gold jewellery and SGB, similar to home loans and vehicle loans announced recently.

The bank has also slashed the margin on home loans and the borrower can now avail of loans up to 80 per cent of the property's value without any upper ceiling on the loan amount, it said.