PNB Lowers Lending Rates
Punjab National Bank (PNB) has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by 5 basis points across all tenors, effective July 1, 2025. This move follows the Reserve Bank of India’s recent repo rate cut.
New MCLR Rates from July 1
- Overnight: from 8.25% to 8.20%
- 1-month: from 8.40% to 8.35%
- 3-month: from 8.60% to 8.55%
- 6-month: from 8.80% to 8.75%
- 1-year: from 8.95% to 8.90%
- 3-year: from 9.25% to 9.20%
Why It Matters
- Borrowing costs for consumers will fall, especially on home and personal loans.
- State banks like Bank of Baroda and Indian Bank also cut MCLR by 5 bps in July, easing overall loan rates.
- The rate cut reflects the RBI’s easing of monetary conditions since February 2025.
This reduction in MCLR should help borrowers by reducing EMIs and loan interest, offering relief to many customers ahead of rate adjustments on their loans.