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SBI reduces education loan rates by up to 200 bps |
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State Bank of India has announced a reduction in the interest rate on education loans, which will be sanctioned to students pursuing higher studies from May 2009 to September 2009, by up to 200 basis points.
In a statement, the bank said that interest rates on education loans (linked to the bank`s prime lending rate of 12.25 per cent) up to Rs 4 lakhs, above Rs 4 lakhs up to Rs 7.50 lakhs and above Rs 7.50 lakhs will stand reduced to 11.5 per cent (11.75 per cent now), 11.25 per cent (13.25 per cent) and 11 per cent (12.25 per cent) respectively.
Apart from this, girl students will get a concession of 0.50 per cent over and above the card rate. The reduced rates are valid for new loans sanctioned during the May 2009 to September 2009 period. However, the extant rates would continue for the existing loans.
For studies in India, SBI has extended loans up to Rs 10 lakhs and Rs 20 lakhs for studies abroad. The bank charges borrowers` simple interest rate during moratorium/repayment holiday. It extends a concession of 1 per cent in interest rate for prompt servicing of the interest during moratorium/repayment holiday. A repayment period of 5-7 years is given after the moratorium.
The bank also offers collateral free loans up to Rs 4 lakhs to students. The bank seeks third party guarantee or other collateral if the loan amount is higher than Rs 4 lakhs. SBI has so far assisted 3, 56,000 students. It has sanctioned loan limits aggregating Rs 2,653 crore in FY2009.
(Posted on : 29/04/2009)
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| SBI reduces education loan rates by up to 200 bps |
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