Punjab National Bank cuts rates; Lender reduces RLLR by 40 bps, MCLR rate by 15 bps

PNB Loan: In a bid to provide relief to borrowers and follow the Reserve Bank of India (RBI) instructions, the Punjab National Bank (PNB) has reduced its Repo Linked Lending Rate (RLLR) by 40 bps to 6.65 per cent. The Public Sector Bank also reduced MCLR rate by 15 bps on Loans and Advances across all tenors. 

PNB informed about the decision yesterday evening in written statement and said, "Punjab National Bank (PNB) has announced the reduction in the External Benchmark linked product of Repo Linked Lending Rate (RLLR) by 40 bps to 6.65 per cent from 7.05 per cent. The bank has decided to pass on the full benefit of RBIs policy rate cut." The statement went on to add that the bank ensures that the benefits of reforms rolled out by the Central Government and RBI reach the businesses and countrymen. Given the current times where individuals and businesses alike need support to bounce back to recovery, this move by the 2nd largest public sector bank will surely serve as a cushion and provide financial support.

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"Further, the bank has also reduced the MCLR rate by 15 bps on Loans and Advances across all tenors. This will be benefited to the customers in a reduction in EMI or tenure of the loan," the PNB statement said.

Good news for senior citizens
To safeguard the interest of Senior Citizen, PNB also announced that it is offering a higher interest rate by 75bps over applicable card rate for all maturities on domestic deposits upto 2 crores. PNB also offers schemes like the Senior Citizens Savings Scheme (SCSS) that provide guaranteed returns through safe investments.
 
Dent to saving fund depositors
Saving fund deposit rate reduced by 50 bps with a maximum of 3.25 per cent with effect from 1st July 2020. Bank has further reduced its term deposit rates in various maturities bucket with a maximum rate of 5.50 per cent for deposits of specified maturities with effect from 1st June 2020.