PNB slashes PLR by 50 basis points to 11%

The country's second-largest public sector lender, Punjab National Bank, today slashed benchmark lending rate by 50 basis points to 11%, a move that will benefit millions home, consumer and corporate loan borrowers.      

The Benchmark Prime Lending Rate (BPLR) has been slashed from 11.5% to 11% effective  from tomorrow, the bank said in a statement.     

The announcement comes after a week the RBI reduced short-term policy rates by quarter percentage.      

The bank has cut interest rate on personal loan by 50 basis points and floating home loan would become cheaper by 25 basis points, it said.      

Besides, the bank has also reduced its peak deposit rate by 50 basis points to 7.5%.

PNB has revised rates in response to lower inflation rate and also keeping the stance of the RBI as announced in the Annual Policy Statement for FY'09-10, indicating scope for reduction in both lending and deposit rates by banks, the statement said.      

Interest rates on housing loan has been revised downward by 25 basis points in all tenors of floating option loans, it said, adding, with this revision, the floating rate housing loan would range from 8.75 % to 10% depending upon tenors and amounts.      

Besides, the threshold limit under the PNB Special Housing Loan Scheme (Fixed) has been enhanced to Rs 50 lakh. Home loan is available at 9% under the scheme for the limited period up to June 30.      

Interest rate on Reverse Mortgage Scheme has also been reduced by 0.5%.      

Similarly, the interest rates on educational loans (linked with BPLR) are also revised downward by 50 basis points, it said.      

The benefit of reduction in BPLR shall be applicable to all existing and new accounts linked with BPLR, wherever interest rates are charged at BPLR and above, it added.      

The bank last reduced it BPLR on February 1 when it reduced the rate by 50 basis points to 11.5%.