Punjab National Bank cuts home loan rates
Hyderabad, September 17, 2021: In a series of offers launched by Punjab National Bank during the festival season, PNB has cut the interest rate on home loans above Rs. 50 lakhs by 50 basis points. PNB has announced that now home loans are offered at 6.60% irrespective of any upper ceiling limit and will be linked with the applicant's credit score. The said rate is also applicable to balance transfer cases and is lowest among public sector banks. Bank has also announced offering top-up home loans at an attractive rate of interest to existing as well as balance transfer cases.
PNB is already offering a full waiver of service charges/ processing fees on Home Loans, Vehicle Loans, Personal Loans, Pension Loans, myProperty Loan and Gold Loans under its Festival Bonanza Offer.
Car Loan from PNB starts from 7.15% and Personal Loan to public from 8.95%, which is one of the lowest in the industry.
PNB has said that Home loan ownership will become more affordable to the public in view of this offer of a full waiver of service charges and a low interest rate starting from 6.60%.
Punjab National Bank Signed MOU for Co-Lending arrangement with IIFL Home Finance Limited:
To align with the Government of India reform agenda and improve the flow of credit to the unserved and underserved sector of the economy, Punjab National Bank has entered into a Co-Lending arrangement with IIFL Home Finance Limited. By this arrangement, the ultimate beneficiary will get the funds at an affordable rate as the bank will charge less interest rate while NBFC has greater reach.
As per RBI Co-Lending Model (CLM) scheme, under this arrangement, non-banking financial companies (NBFCs) will originate and process the loans first hand. At the same time, Punjab National Bank will take their share of the individual loans on a back-to-back basis in the bank's books. Under direct assignment transactions, however, NBFC will maintain a (minimum 20%) share of the individual loan on their books. NBFCs will act as a single point of interface for the customer's and will service the loans throughout the loan tenure.
The MOU is signed by Alok K Goel, General Manager at Punjab National Bank, in the presence of Swarup Kumar Saha, ED at Punjab National Bank and Surendra Kumar Dixit, CGM at Punjab National Bank. The partnership under the said arrangement will result in significant disbursement under the Priority Sector.
