On 06/07/2001, PUNJAB National Bank lowered interest rates on housing loans to 12-12.75 per cent, while linking it with the tenor of repayment. "Flexibility to choose between fixed and floating rate of interest has also been made available to the borrower," the bank said in a release.

Both under fixed and floating optional loans up to Rs 2 lakh, the rate has been lowered to 12 per cent, while it is between 12.25 and 12.75 per cent for loans above Rs 2 lakh under the fixed rate options and a flat 12.50 per cent for the floating rate. Under the new scheme, the bank would provide loans up to Rs 50 lakh to individuals for construction of houses or purchase of flats, it said, adding a maximum Rs 10 lakh would be granted for purchase of plots of land.