State Bank of India, SBI cuts education loan rates by 1%
The country's largest lender State Bank of India (SBI) today reduced interest rates on education loans by up to 1% point across various segments, a move likely to be followed by other lenders.
In order to extend financial assistance to students pursuing higher education in India and abroad at affordable rate, SBI has reduced the rate of interest for education loans, the bank said in a statement.
Education loans up to Rs 4 lakh have become cheaper by 0.25%, at 13.5% compared with 13.75% earlier.
Loans between Rs 4 lakh and Rs 7.5 lakh will be available at 13.25% against 14.25%, a sharp reduction of 1%.
Loans beyond Rs 7.5 lakh will cost 0.25% less at 12%.
Under this education loan scheme, loans up to Rs 10 lakh for studies in India and up to Rs 20 lakh for studies abroad are given.
The new rates are effective from today, the bank said.
Besides, under the SBI Scholar Loan Scheme extended to students joining elite institutions such as IIMs, IITs and NITs, the new rate of interest is 200 basis above Base Rate, currently 12%.
The base rate of the bank is 10%.
At present, it said, 111 institutes are covered under this scheme and loans upto Rs 15 lakh are given.
Loans are sanctioned at attractive terms without any security except parent/guardian as co-borrower, it said.
In addition, the bank will offer 0.5% additional concession for girl students.
At the same time, 1% concession for the entire tenure of loan, if full interest is serviced during moratorium period (including course duration), it said.