PNB
reduces home loan rate
Our
Banking Bureau
3 December 2003
New
Delhi: Punjab National Bank (PNB) has reduced its
rate of interest on housing loans, bringing it down to
one of the lowest in the banking industry.
The
rate of interest for floating rate loans for a 10-year
period has been set at 7.5 per cent. For loans for 10-20
years the bank has reduced the interest by 1.5 per-cent
to 7.75 per cent. The bank has said that the offer is
for a limited period for loans contracted between 1
December and 31.
This
offer, coupled with an announcement of a repayment holiday
of 18 months to all prospective borrowers, where only
the interest component of the loan will have to be paid
during the period, translates into one of the lowest
equated monthly installments 
(EMI)
of Rs 625 per lakh during the repayment holiday for
loans repayable up to 10 years and an EMI of Rs 646
per lakh for loans repayable above 10 years.
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