SBI Education Loans Cheaper by 1 Percent

SBI Education Loans Cheaper by 1 Percent

State Bank of India (SBI) plans to cut interest rates on education loans by up to 100 basis points-1% from Monday 20-02-2012.

Accordingly, for a loan of Rs 4 lakh, interest rate will be down by 25 bps to 11.75 per cent; for loans in the Rs 4-7.5 lakh range, the rate is down 100 bps to 12.50 per cent, while for loans above Rs 7.5 lakh, the rate is lower by 25 bps to 12.25 per cent.

State Bank of India-SBI is also offering a concession of 50 bps on interest rates for loans given to female students.

The government plans to have a central fund into which all banks will contribute from their earnings out of education loans. This fund will, in turn, provide guarantees to education loans. SBI's outstanding education loan portfolio grew 14% to Rs 12,402 crore from Rs 10,883 crore.

For more information visit : http://www.statebankofindia.com/