State-owned Punjab National Bank on Wednesday announced cutting its benchmark lending rate by 5 basis points to 6.50 percent. The Repo Linked Lending Rate (RLLR) has been reduced from 6.55 percent to 6.50 percent with effect from November 8, PNB said in a regulatory filing.

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As part of continued efforts to enhance customer service, PNB also launched a range of deals and offers on its retail loans this festive season. With reduction in RLLR, all loans including home, car, education and personal loans would become cheaper.

The bank had last cut its RLLR on September 17 from 6.80 percent to 6.55 percent. With effect from November 8, 2021, the bank will provide one of the lowest interest rates on car loans at 6.65 percent and further reduced home loan rates, which now start from 6.50 percent, making its banking service more attractive than ever before, PNB said in a separate statement.

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To promote the government's efforts towards the adoption of electric/green vehicles, PNB has slashed the interest rate on e-vehicles and CNG vehicles to 6.65 percent, while it starts from 6.75 percent for other cars, it said. To meet the customers' demand during the ongoing festive season, the interest rate on personal loans has been reduced by 5 basis points (bps) to 8.90 percent. Additionally, the limit on personal loans has been revised upwards to Rs 20 lakh with a repayment period of 72 months.

Further, it said the bank encourages customers to adopt digital banking channels by giving additional discounts of up to 5 bps on home loan and 10 bps on car loan. The customers onboarding through various digital channels like internet banking and PNB One Mobile App can avail of this benefit.

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The bank also offers a full waiver of service charges/ processing fees on home, vehicle, personal, gold, and property loans.