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)

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The major announcements related to education sector in budget 2009-10 are:

  • Rs.827 crore allocated for opening one Central University in each uncovered State.
  • Rs.2,113 crore allocated for IITs and NITs which includes a provision of Rs.450 crore for new IITs and NITs.
  • Rs.50 crore allocated for Punjab University, Chandigarh. Plan allocation for Chandigarh to be suitably enhanced during the year to provide better infrastructure to the people of Chandigarh.
  • The overall Plan budget for higher education is to be increased by Rs.2,000 crore over Interim B.E. 2009-10.

Kapil Sibal’s (HRD minister) vision forward of revolutionising the education system (primarily school level) in India and Pranab Mukherjee (Finance Minister) has laid emphasis on the cause of higher education. Finance Minister has announced an increase of Rs 2,000 crore in plan expenditure to Rs 9,596 crore besides other sops especially for students from weaker section of the society.

The Union Budget 2009-10 has declared a scheme to provide full interest subsidy during the moratorium period on education loans taken from scheduled banks for pursuing any of the approved courses of study in technical and professional streams from a recognized institution in India. The scheme will be available to students from economically weaker sections to access higher education.

Information sourced from : SurfIndia,Rupess Times and Rediff

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