May 1, 2009 2:00:58 am
State Bank of India has lowered interest rates on student loans to be sanctioned from May to Sept 2009,when most of the admissions take place and demand for loans are higher. Interest rates for loans upto Rs. 4 lakh,above Rs.4 lakh upto Rs.7.50 lakh and above Rs.7.50 lakh which are linked to the banks PLR (currently at 12.25% p.a.) will stand reduced to 11.5%,11.25% and 11% respectively against the present rates of 11.75%,13.25% and 12.25% respectively.
Girl students would get further concession of 0.50% in interest. The lower rates are applicable for new loans sanctioned during May 2009 to September 2009. For existing loans,the extant rates would continue,said statement issued by the bank.
SBI will also extend loans up to Rs.10 lakh for studies in India and Rs.20 lakh for studies abroad. During moratorium/repayment holiday simple interest rate is charged. A further concession of 1% in interest rate is given for promptly servicing the interest during moratorium/repayment holiday. A repayment period of 5-7 years is given after moratorium,said the press release.
SBI also offers collateral free loans upto Rs.4 lakh to students.
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