If you are a customer of Punjab National Bank (PNB), then this news is very important for you. The bank has cut its external benchmark linked rate (EBLR) since 1 March 2025. This will reduce the interest rates of home loan, car loan and other floating rate loans, which will reduce the burden of EMI of customers.
However, the bank has increased the marginal cost based debt rate (MCLR) of the fund, which can affect customers with old MCLR-based loans.
PNB changes in MCLR, new customers will get benefit
PNB has reduced its EBLR from 1 March 2025, which will apply low interest rates on the new floating rate loan.
MCLR has been increased, which will affect the customers whose loans are still associated with the MCLR system.
What is MCLR and EBLR?
MCLR – This is the minimum interest rate that does not give a loan to a customer at a lower rate. Earlier all loans were given at this rate.
EBLR – It is directly linked to the repo rate of RBI, due to which the repo rate decreases then the interest rate of the loan also decreases.
Now old MCLR customers can shift their loan to EBLR, which can give them the benefit of low interest rate.
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RBI’s decision and new PNB rates
In February 2025, the Reserve Bank of India (RBI) cut the repo rate by 0.25% to 6.25%.
Subsequently, PNB also reduced its home loan interest rates to 8.15%.
According to the new interest rates, the monthly EMI of the traditional home loan of PNB will be just ₹ 744 per lakh.
The interest rate on the car loan will start from 8.50%, and EMI will be ₹ 1,240 per lakh.
Special offer for customers: PNB said that by 31 March 2025, advance processing and documentation charge will be completely forgiven.
Effect EMI: How much will the difference be on your pocket?
| Loan type | Old interest rate | New interest rate | EMI per lakh (at new rate) |
|---|---|---|---|
| Home loan | 8.50% | 8.15% | ₹ 744 |
| Car Loan (New Car) | 8.75% | 8.50% | ₹ 1,240 |
| Car loan (old car) | 9.25% | 8.50% | ₹ 1,240 |
Reduction in interest rates will provide relief to customers directly in EMI, which will increase their monthly savings.
What to do customers?
If your loan is on EBLR – then your EMI will be reduced before.
If your loan is on MCLR – then you can contact the bank to transfer it to EBLR, which will give you a low interest rate.
The right time for those taking new home loans – because interest rates have come down, you can avail processing fees waiver by 31 March 2025.
