CEO Robin Fleming announced on Friday that a decision was made during the Annual General Meeting.
The decision will drop reduce the current repayment rate of 8.45 per cent 7.45 per cent.
“We also made a decision today to reduce our home loan rate by one per cent which will benefit many of the Papua New Guineans who have home loans with BSP,” said Fleming.
The decision comes into effect on the 01st of June.
Meanwhile, Fleming also announced the near refurbishment of its branches in the capital city as well as the opening of a new sub-branch.