Home Buying Cheaper in Corona Era, PNB-Union Bank gave this Relief

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In this crisis of corona virus, buying a house has become much cheaper than before. Every other day, an announcement is being made by some bank to reduce the interest rate on home loan.

Now, PNB Housing Finance has cut the loan rates for existing customers by 0.15 percent. This deduction will be for both personal home loans and loans taken against property. The new loan rate will be applicable from 9 May.

What did the bank say …

The bank said in a statement that this deduction will be available to all existing retail customers who have taken loans at floating rate before February 2020.

PNB Housing Finance CEO Neeraj Vyas said, “We have taken this step to provide relief to customers during the current Kovid-19 crisis.” This will also help in growth in housing sector. Our 2.35 lakh customers will get the benefit of this, irrespective of their loan principal amount. ”

Explain that the company gives home loans to its retail customers. Apart from this, the company also gives loans for construction to real estate developers.

Union Bank also gave relief

Public sector Union Bank of India has cut the margin cost of lending rate (MCLR). This deduction will be effective from May 11. The bank has cut MCLR for the 11th consecutive time since July 2019.

According to the bank, the one-year MCLR has been reduced by 0.05 per cent from 7.75 to 7.70 per cent. MCLR rates of one year duration are the main basis for loans, like personal, car and home loans.

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What is MCLR?

There is a methodology set by the Reserve Bank of India. Under this, commercial banks decide the interest rate of the loan. This rate is influenced by the repo rate of RBI. If the RBI lowers the repo rate, the pressure on banks to reduce MCLR increases.

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