The biggies are lowering interest rates, following the Reserve Bank of India’s repo rate cut by 25 basis points to 6.25% in its January monetary policy.

Punjab National Bank (PNB) is the latest to do so, announcing on Thursday a reduction in interest rates by up to 25 basis points on retail loans, including housing and auto loans.

The revised rates apply to a wide range of products, including education and personal loans, ensuring that customers continue to receive diverse financing options, PNB said in a statement.

After a gap of five years, the RBI reduced the repo rate, the rate at which banks borrow from the central bank, on 7 February.

Following the rate cut, PNB has revised the home loan rate to 8.15% under various schemes. Customers can benefit from a complete waiver of upfront processing fees and documentation charges till March 31, 2025, it said.

The traditional home loan scheme offers rate of interest starting from 8.15% per annum with an EMI of Rs 744 per lakh, it said.

With regard to auto loan, it said, for financing both new and used cars, the rate starts from 8.50% per annum with EMIs as low as Rs 1,240 per lakh.

To promote sustainable mobility, PNB offers a 0.05% concession in rate starting from 8.50% per annum and starting EMI of Rs 1,240 per lakh.

Customers can benefit from a longer repayment tenure of up to 120 months and enjoy 100% financing of the ex-showroom price, it said.

In the case of education loans, the minimum card rate has been reduced to 7.85% per annum.

Customers can avail personal loan up to Rs 20 lakh through a seamless digital process, eliminating the need for branch visits or paperwork, it said, adding the revised rate starts from 11.25%.

The new rates are effective from 10 February, PNB said.

Earlier this month, State Bank of India (SBI) had slashed interest rate on retail loans, including housing, by 25 basis point in alignment with RBI policy rate reduction.