You are here: Home » Finance » News » Banks
Business Standard

PNB makes home, auto loans attractive for govt staff

Bank said it will offer loans to these segments without any processing or upfront fee and no documentation charges will be levied on them

Press Trust of India  |  New Delhi 

Punjab National Bank, PNB
Punjab National Bank

To cash in on the 7th Pay Commission payout to government employees, state-owned National Bank (PNB) is offering them home and auto loans at attractive rates of 9.3-9.8 per cent beginning this month.

Besides, the bank said it will offer loans to these segments without any processing or upfront fee and no documentation charges will be levied on them.

The rate of interest is with effect from October 1, 2016.

The Delhi-based state lender said the objective of the drive — christened as 'Pride' — is to "ensure availability of housing and vehicle loan at attractive rates and ensure a house and a car for all government employees".

For housing loan, the floating interest rate has been fixed at marginal cost of lending rate (MCLR) for one year at 9.3 per cent. For those availing the housing loan on a fixed rate basis, it will be a floating one of interest plus 0.50 per cent (i.E, 9.8 per cent).

For car loan, customers will be charged of one year plus 0.25 per cent (9.55 per cent) on a floating basis. As for fixed interest rate with a reset clause of 3 years, it will be of one year plus 0.25 per cent, or 9.55 per cent.

Permanent employees of central and state governments, defence personnel and paramilitary forces will be able to avail of the benefits of lower rates under the Pride scheme.

All other terms and conditions of the existing housing and car loan scheme will be applicable to the borrowers, said.

First Published: Tue, October 11 2016. 11:22 IST
RECOMMENDED FOR YOU