PNB Announces Major Home Loan Rate Cut After RBI’s Surprise Policy Move: MoneyGale Exclusive
Punjab National Bank Lowers Home Loan Interest Rates by 50 Basis Points, Following RBI’s Sharpest Rate Cut Since the Pandemic
Punjab National Bank (PNB) has announced a major reduction in its home loan interest rates, directly responding to the Reserve Bank of India’s (RBI) unexpected 50 basis point cut in the repo rate. This move is set to make home loans significantly more affordable for millions of borrowers across the country.
Official Announcement and New Rates
On June 6, 2025, PNB made the rate cut official through its X (formerly Twitter) handle, stating: “Great News for Our Valued Customers! Punjab National Bank Makes Your EMIs More Affordable.” The new rates, effective from June 9, 2025, will see home loans starting at just 7.45% per annum, vehicle loans at 7.80%, and personal as well as MSME loans also being offered at lower rates.
Why the Sudden Rate Cut? Understanding RBI’s Policy Shift
The RBI’s decision to slash the repo rate from 6.00% to 5.50%—the sharpest rate cut since the Covid-19 pandemic—was accompanied by a reduction in the cash reserve ratio (CRR) by 100 basis points to 3%. This policy shift is expected to inject over ₹2.5 lakh crore into the banking system, aiming to stimulate lending and spending, especially in sectors like real estate where demand has slowed due to rising prices.
Expert Views: What Industry Leaders Are Saying
Industry experts have welcomed the RBI’s proactive approach. According to reports, Amit Bhagat, Co-Founder, CEO and MD, ASK Property Fund, commented: “RBI’s announcement of a further rate cut of 50 bps is a significant proactive step at a time when demand for residential real estate is seeing signs of slowing down across segments due to increased prices. Home ownership continues to be an aspiration and dream for every Indian household, and these rate cuts, followed by reduced home loan interest rates, will strengthen home buyer confidence.”
Impact on Borrowers: Lower EMIs and Easier Home Loans
For both new and existing borrowers, the PNB rate cut means lower EMIs and easier access to home financing. This development is particularly beneficial for salaried individuals, small businesses, and first-time homebuyers who have been eagerly waiting for more affordable loan options.
What to Expect Next: Will Other Banks Follow Suit?
With the RBI signalling a shift in policy to boost economic growth, more public sector and private banks are expected to announce similar rate cuts in the coming weeks. Borrowers are advised to keep an eye out for further updates from major lenders like SBI, Bank of Baroda, Canara Bank, and HDFC Bank.
This MoneyGale exclusive is based on official updates shared by Punjab National Bank via X (Twitter) on June 6, 2025, and industry commentary as per available reports.
