SBI cuts education loan rate
State Bank of India (SBI) has cut interest rates by one percentage point to 13.25% for loans under its 'student scheme' for amounts between Rs 4 lakh and Rs 7.5 lakh. On all other amounts, the interest rates have been reduced by 25 basis points (bps). Following the cut, SBI will charge 13.5% on education loans up to Rs 4 lakh and 12% on loans above Rs 7.5 lakh. Besides the 'student scheme', which is a general education loan, the bank offers loans under 'SBI Scholar scheme' for those joining elite institutions like IIMs, IITs, and NITs. At present, 111 institutes are covered under this scheme and loans are extended up to Rs 15 lakh. Loans are sanctioned without any security except a requirement that the parent or guardian should be included as co-borrower. The rate of interest under this scheme has also been reduced by 25bps to 12%. Besides the rate cut, SBI has said that it will extend an additional concession of 0.5% for girl students.