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SBI May Reduce Interest Rates On Educational Loans

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SBI Reduces Education Loan Interest Rate
The SBI- The country's largest lender State Bank of India is now planning to reduce its interest rates on educational loans, but no changes will be made on the base rate. The bank is expecting a good growth in this segment with the government promoting a fund to guarantee educational loans. At Present, Interest rates on SBI education loans vary from 12.25% to -14.50%, based on the quantum and period for which the loan has been granted.

SBI currently holds a lowest base rate of 10% and thus, has no plans to reduce it further. Sources from SBI revealed that the reduction in the interest rates will mainly depend on 2 reasons; first the competition from other banks and second slow credit pick-up.

SBI Chairman Pratip Chaudhri said “The bank does not have any plans to reduce its home loan rates during the current fiscal. We may not reduce our base rate since it is at 10%, which is the lowest in the industry. We also do not want to change our home loan rates because these are at 10.5% which is very close to the base rate”.

However, in case the Central bank further reduces the CRR (cash reserve ratio) then the complete rate structure will be reduced.

Source : TOI

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