PNB launches NIRMAAN 2025 to avail of zero processing fees on home, vehicle loans; details here

Punjab National Bank (PNB) has unveiled its latest initiative, the 'NIRMAAN 2025' campaign, offering zero processing fees on home and car loans in a bid to attract prospective home buyers, car buyers, and students. This time-bound offer also includes zero documentation charges and zero fees for No Encumbrance Certificates (NEC), legal, and valuation services for home loan takeovers above a certain amount. Customers can benefit from an interest rate concession of 5 basis points on home, car, and education loans, enhancing the attractiveness of this programme.

The RLLR, or Repo Linked Lending Rate, has been adjusted to 8.65% from the previous 8.90%, effective 10th April 2025. This adjustment reflects the current repo rate of 6.00% with an additional mark-up of 2.65%. Consequently, the effective lending rate for floating rate personal loans, including home, auto, and MSME loans, is set at 8.85%. The term “repo-linked lending rate” refers to an interest rate linked to the repo rate, an external benchmark mandated by an RBI circular in October 2019. This strategic move ensures that PNB remains competitive in the lending market.

The updated Marginal Cost of Funds-based Lending Rate (MCLR) ranges from 8.40% for overnight tenors to 9.35% for three years, as of 1st April 2025. These revised rates are part of PNB’s endeavour to offer more favourable lending options for its customers. The adjustments signify PNB's response to market dynamics and its strategic positioning to leverage better interest rates as a competitive advantage.

The NIRMAAN 2025 initiative is expected to impact the lending landscape significantly, as PNB seeks to enhance its market share amidst intense competition. Major competitors in the sector include the State Bank of India, known for its extensive branch network, and ICICI Bank, which has a robust digital banking platform. These rivals have been active in adjusting their own lending strategies to attract customers.

Customers interested in availing the benefits of NIRMAAN 2025 can apply by visiting any PNB branch or utilise the digital platform via the PNB One mobile app or website. The digital application process is designed to ensure faster approvals and seamless documentation, making the loan acquisition process more convenient. This initiative aligns with PNB’s commitment to offer customer-centric services and solutions, strengthening its position in the financial services sector.