PNB reduces home and car loan by 50 basis points

NEW DELHI: Following State Bank of India's footsteps, Punjab National Bank today slashed home and car loans by 50 basis points.

The bank has launched 'PNB Festival Season Bonanza Offer 2009' that offers attractive rates to people during the festival season. PNB's campaign comes a week after SBI's three-month-long home loan campaign, offering loans at 8 per cent.

"Under the offer, housing loans up to Rs 30 lakh will be available at discounted rate of interest of 8.50 per cent under fixed interest rate option (fixed for three years) across all repayment tenors, besides full waiver of processing (upfront) fee and documentation charges", PNB said in a statement.

Margin also stands reduced to 15 per cent for housing loans up to Rs 20 lakh, it said.

On car loans, a rebate of 0.5 per cent is offered to prospective borrowers under fixed option.

The offer will be valid from tomorrow till October 31, it added. At present, the fixed rate of interest offered by bank is 9 per cent.

This is in continuation of several measures initiated by the bank in the recent past to make its retail lending schemes customer-friendly, it said.