Druk Panjab National Bank clients can now avail loans at lower interest rates starting, today. The bank has lowered its interest rates from 1 to 3.5 percent on its various loan products. Druk PNB is the last financial institution in the country to revise its lending interest rates following the introduction of Minimum Lending Rate of 6.75 percent by the central bank.
On an average the lending interest rates of Punjab National Bank for its various loans have been reduced by 2.5 percent.
For instance, the interest rate of the most common loans; personal or consumer loan, has come down to 9.5 percent from 13 percent. Similarly, Government Employees Loan has also been reduced to 9.75 percent from 13 percent.
Unlike other banks, Druk PNB will provide an additional interest reduction of 0.5 percent, who provides collateral security such as land and building as mortgage.
“For example in the manufacturing industry, the present rate of interest being offered is 11.25 percent but they will be largely financed for the purpose of project assets and that will be mortgaged to the banks, so if such client is offering a collateral security of value say 50 percent of the loan amount, we will offer him an additional interest rate concession of 0.5 percent so when we minus 11.5 by 0.5, we will be charging 10.75 percent,” said Druk PNB’s CEO, Mukesh Dave.
The revised lending interest rates are applicable to both new and existing clients on fulfilling certain terms and conditions of the bank.
For the last quarter of the financial year 2016, the bank is estimated to lose Nu 19.14 Million due to reduction in interest rates. With Druk PNB, all the banking and non banking financial institutions in the country have now revised their lending interest rates.
The new interest rate policy is expected to generate more competition among the financial institutions.
