SBI reduces interest rates on education loans

Hyderabad:  Here is good news for the students pursuing higher studies this season.  SBI has lowered interest rates on Student
Loans to be sanctioned from May 2009 to Sept 2009 when most of the admissions take place and students take loans for studies in India or abroad. Interest rates for loans upto Rs. 4 lacs, above Rs.4 lacs  upto Rs.7.50 lacs and above Rs.7.50 lacs which are linked to the Bank’s PLR (currently at 12.25% p.a.) will stand reduced to 11.5%, 11.25% and 11% respectively against the present  rates of 11.75%, 13.25% and 12.25%. Girl students would get further concession of 0.50% in interest. The lower rates are
applicable for new loans sanctioned during May 2009 to September 2009.  For existing loans, the extant rates would continue.

SBI extends loans upto Rs.10 lacs for studies in India and Rs.20 lacs for studies abroad.  During moratorium/repayment holiday
simple interest rate is charged.  A further concession of 1% in interest rate is given for promptly servicing the interest during moratorium/repayment holiday. A repayment period of 5-7 years is given after moratorium.

SBI offers collateral free loans upto Rs.4 lacs to students. Third party guarantee or other collateral is required only if the loan amount is higher than Rs.4 lacs.  SBI has been the market leader in extending oans to students for pursuing higher studies in India and abroad and assisted 3,56,000 students. Loan limits aggregating Rs.2,653 crores were sanctioned during the period from April 2008 to March 2009.

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