Public sector banks have started giving relief to customers after the Reserve Bank of India cut a repo rate by 0.50 percent. In this sequence, Punjab National Bank (PNB) has announced a cut in interest rates of its home and auto loan. The bank’s new interest rates will be applicable from 9 June 2025.
PNB reduced repo-linked rate, relief will come in EMI
PNB informed on the social media platform ‘X’ that it has reduced its repo linked lending rate (RLR) by 0.50 percent. Now the bank’s RLR has come down to 8.10 percent. Under this, the interest rate of home loan will start from 7.45 percent and auto loans will start from 7.80 percent per year.
The bank wrote in its message, “There is great news for our valuable customers. Your EMI has been made more cheap now.”
RBI reduced repo rate to 5.5 percent
In the meeting of RBI’s Monetary Policy Committee on Friday, it was decided to reduce the repo rate from 6.00 percent to 5.50 percent. This is the lowest level of the last three years. Since February 2025, the repo rate has been cut by 1 percent.
RBI Governor Sanjay Malhotra said that the reduction in interest rates will speed up economic activities. He also clarified that its effect would be seen in the second half of FY 2025-26.
Claim of inflation control
The RBI Governor said that the speed of inflation has come in the last months and it is now under control. He indicated that the benefit of policy rate cuts will reach the common customers this time faster than before.
