A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • PNB MCLR

    PNB or Punjab National Bank, simply known as PNB is one of the leading banks in India that offers exciting financial services and products. Punjab National Bank has revised the MCLR (marginal cost of funds-based lending rate), just like the other top banks in the country. This step has been taken as per the directive of the Reserve Bank of India in order to make home loans more affordable for the customers.

    Current PNB MCLR Rate:

    Tenure PNB MCLR Rates
    Overnight 6.60%
    1 month 6.65%
    3 months 6.75%
    6 months 6.95%
    1 year 7.25%
    3 years 7.55%

    How to switch from Punjab National Bank Base Rate to Punjab National Bank MCLR Rate?

    In order to switch from Punjab National Bank Base Rate to Punjab National Bank MCLR Rate, two steps must be followed:

    • A written application must be sent to Punjab National Bank so that they may initiate the linking process for your home loan and MCLR.
    • After the linking between the marginal cost of funds based lending rate and PNB Home Loan is done, you must ask the bank to reduce the quantum of spread. You will have to pay a processing fee for the linking. After this the interest rates associated with your home loan will be refreshed as per MCLR.

    What Should the Existing Borrowers Do?

    Switching to marginal cost of funds based lending rate can reap great benefits. You can save a great deal of interest which you would have paid otherwise with base rate on your housing loan. The existing borrowers, however, will not be able to enjoy the benefits of MCLR right away. Most of the home loan agreements associated with marginal cost of funds based lending rate are borrowed after a year. The existing borrowers of PNB home loan will have to wait till their home loan rates are renewed. The new rate of interest on the date of reset will be determined by MCLR rate cuts over the past half-year or one year.

    PNB Home Loan Rate and MCLR:

    • The overnight loans, cash credit, etc. are shorter duration loans. They have been linked to the shorter period MCLR. The longer period loans like vehicle loan, housing loan, etc. have been linked to the longer duration marginal cost of funds based lending rates.
    • The applicable rate on the floating rate housing loans has two distinct parts. One is the applicable benchmark rate and the other one is the margin or spread on top of benchmark.
    • Floating rate housing loans that have been sanctioned by Punjab National Bank is benchmarked to MCLR with specific tenures like 6 months, 1 year, 3 years, etc.

    Punjab National Bank MCLR History:

    Revision Date Overnight MCLR 1 Month MCLR 3 Months MCLR 6 Months MCLR 1 Year MCLR 3 Years MCLR
    1 October 2021 6.60% 6.65% 6.75% 6.95% 7.25% 7.55%
    1 September 2021 6.65% 6.70% 6.80% 7.00% 7.30% 7.60%
    1 August 2021 6.65% 6.70% 6.80% 7.00% 7.30% 7.60%
    1 July 2021 6.65% 6.70% 6.80% 7.00% 7.30% 7.60%
    1 June 2021 6.65% 6.70% 6.80% 7.00% 7.30% 7.60%
    1 May 2021 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 April 2021 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 March 2021 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 February 2021 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 January 2021 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 December 2020 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 November 2020 6.65% 6.70% 6.90% 7.10% 7.35% 7.60%
    1 October 2020 6.80% 6.80% 6.95% 7.15% 7.35% 7.60%
    1 September 2020 6.80% 6.80% 6.95% 7.15% 7.35% 7.60%
    01 August 2020 6.80% 6.80% 6.95% 7.15% 7.35% 7.60%
    01 July 2020 7.05% 7.05% 7.20% 7.40% 7.60% 7.85%
    01 June 2020 7.05% 7.05% 7.20% 7.40% 7.60% 7.85%
    01 May 2020 7.20% 7.20% 7.35% 7.35% 7.75% 8.00%
    01 April 2020 7.20% 7.20% 7.35% 7.35% 7.75% 8.00%
    01 March 2020 7.50% 7.50% 7.65% 7.85% 8.05% 8.30%
    01 February 2020 7.50% 7.50% 7.65% 7.85% 8.05% 8.30%
    01 January 2020 7.50% 7.50% 7.65% 7.85% 8.05% 8.30%
    01 December 2019 7.75% 7.80% 7.85% 8.05% 8.15% 8.35%
    01 November 2019 7.75% 7.80% 7.85% 8.05% 8.15% 8.35%
    01 October 2019 7.85% 7.90% 7.95% 8.15% 8.25% 8.45%
    01 September 2019 7.90% 7.95% 8.00% 8.20% 8.30% 8.50%
    01 August 2019 7.90% 7.95% 8.00% 8.20% 8.30% 8.50%
    01 July 2019 8.00% 8.05% 8.10% 8.30% 8.40% 8.60%
    01 June 2019 8.05% 8.10% 8.15% 8.35% 8.45% 8.65%
    01 May 2019 8.05% 8.10% 8.15% 8.35% 8.45% 8.65%
    01 April 2019 8.05% 8.10% 8.15% 8.35% 8.45% 8.65%
    01 March 2019 8.05% p.a. 8.10% p.a. 8.15% p.a. 8.35% p.a. 8.45% p.a. 8.65% p.a.
    01 February 2019 8.15% p.a. 8.20% p.a. 8.25% p.a. 8.45% p.a. 8.55% p.a. 8.70% p.a.
    01 January 2019 8.15% p.a. 8.15% p.a. 8.25% p.a. 8.45% p.a. 8.50% p.a. 8.70% p.a.

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