India’s biggest money lender – SBI (State Bank of India ) is contemplating to cut interest rates on education loans. SBI’s chairman Pratip Chaudhuri said on Monday (13th Feb,2012) that the bank would go for a rate cut in education loans along with other loan categories. However he did not disclosed the percentage point cut.

SBI Student Loan Scheme

Loan Amount  Rate of Interest (w.e.f. 10.10.2011)
For loans upto Rs.4 lacs 3.75% above Base Rate, currently 13.75% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs 4.25% above Base Rate, currently 14.25% p.a.
Above Rs.7.50 lacs 2.25% above Base Rate, currently 12.25% p.a.

(0.50% concession in interest for girl student)

Education Loan Scheme for students of ISB, Hyderabad

2.75% above Base Rate, currently 12.75% p.a.

(0.50% concession in interest for girl student)

SBI Scholar Loan Scheme (w.e.f. 10.10.2011)

2.25% above Base Rate, currently 12.25% p.a.(Irrespective of the loan amount)

(0.50% concession in interest for girl student)

 

So in the coming days , we can see some rate cuts for such Education Loans. Moreover education loan defaults are not a matter of great concern for State Bank of India because higher amount of loan is normally taken by students undertaking professional education. Higher defaults are being witnessed in loans advanced to agriculture and the small and medium enterprises (SME) sector.

For more Logon to : https://www.sbi.co.in

 

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