Allahabad Bank and PNB linked their loan products with Repo rate

Allahabad Bank and Punjab National Bank took a major step which would be a relieve for the customers. The banks have announced that they would link their loan products with the repo rate of the Reserve bank of India.

On tuesday, Punjab National Bank launched PNB advantage which is a lending scheme of the bank and is linked with the repo rate.

In a statement to press, a representative of PNB said ” In the new schemes rate of interest will be 0.25 per cent less than the existing applicable rates based on MCLR. The new rates will vary from 8.25 per cent to 8.35 per cent for housing loan borrowers and 8.65 per cent for car loan borrowers,”.

Allahabad Bank also announced that it has benchmarked the loans upto 75 lakh which will be linked to the repo rate and external benchmark linked rates.

In a regulatory filing the Allahabad Bank said that the bank has decided to keep the housing loans up to the limit of 75 lakhs only and the mudra loans will get sanction from 01/09/2019.

In the filing Allahabad bank said,  “However, the borrowers shall have the option for either marginal cost of funds based lending rates (MCLR) linked loan or EBLR linked loan at mutually acceptable terms.”

The step from the banks would now made the loans cheaper than before and the customers would be easily able to get them.