India’s largest lender,State Bank of India (SBI),today signalled a lower interest rate regime by announcing up to one percent reduction in interest rate on education loans.
Under the revision announced today,interest rate on education loans over Rs 4 lakh but under Rs 7.5 lakh will stand at 3.25 per cent over the bank’s Base Rate (the minimum rate of lending) as against 4.25 percent earlier,it said in a statement here.
SBI’s Base Rate to which interest rates are linked stands at 10 per cent,the lowest among the leading banks.
Interest rates on loans over Rs 7.5 lakh have also been reduced by 0.25 percent,it said.
Similarly,interest rate on loans given to students undergoing courses at premium institutes like IITs,IIMs have also been cut by 0.25 percent to 2 percent over the Base Rate,the statement said.
In addition,the bank also said a 0.50 percent concession will be given to girl students and one percent concession for the entire tenure of the loan if full interest is serviced during the moratorium period.