SBI to slash interest rate on education loans

The country's largest lender State Bank of India (SBI) today reduced interest rates on education loans by up to 1 percentage point across various segments, a move likely to be followed by other lenders.

Education loans up to 4 lakh have become cheaper by 0.25 percentage point to 13.50 per cent against 13.75 per cent. However, loans between Rs 4 lakh and 7.5 lakh will be available at 13.25 per cent against 14.25 per cent, a sharp reduction of 1 percentage point. Loans beyond Rs 7.5 lakh will cost 0.25 percentage point less at 12 per cent. Under this education loan scheme, loans up to Rs 10 lakh for studies in India and up to Rs 20 lakh for studies abroad are given

At present, interest rates on education loans range from 12.25 per cent to 14.50 per cent, depending on their quantum and the duration. SBI is also offering a concession of 0.5 per cent on interest rates for loans given to female students.

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