State Bank of India on Monday signalled a lower interest rate regime by announcing up to one percentage point reduction in interest rate on education loans.
The revised interest rate on education loans over Rs.4 lakh but under Rs.7.50 lakh will stand at 3.25 per cent over the bank's Base Rate (the minimum rate of lending) as against 4.25 per cent 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.7.50 lakh have also been reduced by 25 basis points, it said.
Similarly, interest rate on loans given to students undergoing courses at premium institutes such as IITs, IIMs have also been cut by 25 basis points to 2 basis points over the Base Rate, the statement said.
In addition, the bank also said a 50 basis point concession will be given to girl students and one percentage point concession for the entire tenure of the loan if full interest is serviced during the moratorium period.
