PNB tweaks loan rates for government staffers to cash in on 7th Pay commission bonanza

To cash in on the 7th Pay Commission payouts, state-owned Punjab National Bank (PNB) is offering home and auto loans at attractive rates of 9.3-9.8% beginning this month. Besides, the bank will offer loans to government employees without any processing or upfront fee and no documentation charges will be levied on them.

The Delhi-based state lender said the objective of the drive— christened ‘PNB 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%. For those availing the housing loan on a fixed rate basis, it will be a floating one of interest plus 0.50% (9.8%).

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

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