PNB reduces PLR, rates on selected retail loans reduced

Punjab National Bank (PNB) has reduced its prime lending rate (PLR) by 50 basis points.

Its benchmark rate has been reduced to 12.50 per cent from 13 per cent, effective from March 1, 2008.

The reduction in PLR means cheaper PLR-linked loans such as home loans (floating rate) and car loans.

The bank has also reduced its interest rates by 0.5 per cent on some loans that are not linked to PLR. For housing loans above Rs 20 lakh, the interest rate will be in the range of 9.5 per cent to 10.5 per cent, against the existing rates ranging from 10-11 per cent.

The interest rates on home loans to buy a second property have also been reduced by 0.5 per cent.