Punjab National Bank on Monday reduced the interest rates on housing loans.

Under the floating option, eight per cent interest will be charged on loans repayable in five years (7.75 per cent under the Finbasket scheme), 8.75 per cent for 5-10 years (8.25 per cent under Finbasket), 9.25 per cent for 10-20 years and 9.75 per cent for 20-25 years.

The EMI (equated monthly installments) works out to Rs 880 per lakh, a bank press release said in New Delhi.

Under the fixed option, the rate of interest will continue to be 9.25 per cent on loans repayable upto five years, 10.25 per cent for 5-10 years, 10.5 per cent for 10-20 years and 11 per cent for 20-25 years.

Additional benefits in interest rates (0.25 per cent lower) and margin (10 per cent) are available to women borrowers, the release said.

There is no age-wise entry-level barrier, while the option is open to switch over from floating to fixed rate of interest and vice versa, it added.

(UNI)