Big news for PNB account holders! Home loan gets cheaper as bank reduces rates from June 1


New Delhi: Those who have either taken a home loan or are planning to take one from Punjab National Bank (PNB) have a reason to rejoice. The public sector bank has reduced the MCLR interest rates, which is a key deciding factor on home loan interest rates.

PNB has reduced the 1-year MCLR by 0.05 percent to 7.30 percent. The new rates have come into effect from today, (June 1 2021), the bank said in a regulatory filing. 

The six-month and three-month tenor MCLRs were cut by 0.10 per cent each to 7 per cent and 6.80 per cent, respectively. The overnight, one-month and three-year MCLRs have been kept unchanged.

Marginal Cost of Funds Based Lending Rate (MCLR) with effect from 01.06.2021 is as under:-

MCLR TENOR  Existing  Revised w.e.f. 01.06.2021
Overnight  6.65% 6.65%
One month  6.70%  6.70%
Three month   6.90% 6.80%
Six month   7.10% 7.00%
One year   7.35% 7.30%
Three years  7.60%  7.60%

There will be no Change in Base rate (presently 8.65%) and RLLR (presently 6.80%), Punjab National Bank said.

The Marginal Cost of Funds based Lending Rate (MCLR) system which came into effect on April 01, 2016 to ensure that banks or lenders cannot charge interest rates beyond the margin prescribed by RBI.

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