New Delhi, Feb 25 (UNI) Taking a cue from other banks, Punjab National Bank today announced reduction in its benchmark prime lending rate (BPLR) by 50 basis points (bps) from 13 per cent to 12.50 per cent with effect from March 1.
''The measure will benefit all the borrowers availing loans with rate of interest linked to BPLR based on credit risk rating,'' the bank said in a statement.
Maximum benefit will accrue to small borrowers including pensioners, small and medium enterprises, and those availing education loans, it added.
Besides, the bank has also reduced interest rates by 50 bps on loans not linked to BPLR such as housing loans above Rs 20 lakh where the interest rates will now be in the range of 9.5-10.5 per cent as against the existing rates ranging from 10-11 per cent.
The interest rate on loans for a second house has also been reduced by 50 bps. As compared to peer banks, the interest rates on housing loans up to Rs 20 lakh continued to be the lowest in the range of nine-10 per cent in the PNB.
The bank has also reduced interest rates on car loans and consumer loans (personal loans) by 50 bps to 100 bps, the statement added.
From July last year, the bank has progressively been reducing the deposit rates and also reducing the dependence on bulk deposits at higher rates to reduce the cost of funds.
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