SBI announced to reduce interest rates for education loans up to 250 basis points, for a bounded period. All the education loans which are linked with the banks prime lending rate (PLR), interest rates will be lowered. Education loans up to Rs 4 lakh now will be on 11.5% from 11.75%. In this term SBI has announced its interest rates 11.25% from 13.25% on educational loans.
Presently, SBI offers 12.25% per annum for loans of 7.5-lakh. On the loan amount now, SBI has reduced by 1.25%. For the girl students concession of 0.50% will be available further.
The new interest rates will be applicable from May-September 2009 on the loans amount while for existing loans interest rates would continue. With the announcement now, SBI is offering up to Rs 10 lakh for studies in India and for the abroad Rs 20 lakh.
From April 1 LIC Housing Finance announced to cut loan rates by 0.75 per cent for existing customers. Now the rate will be 10-10.5% as against 10.75-11.25% earlier. The company had already reduced up to 0.75% lending rates for its existing customers. By the company there is nothing for new customers now.
In the series Deepak Parekh who is the Chairman of HDFC announced that HDFC is not lowering interest rates now for home loans or other purposes. However, RBI has already reduced repo rate about 75%.
For the home loans State Bank of India announced to reduce interest rates up to 8% for one year. From May to September the bank has announced to slash auto loans and warehouse-based receipts loans also.
SBI has slashed interest rates for all new SME customers also up to 8% on the loan amount up to Rs 5 lakh.
In this series SBI is in leading role for the various purposes loans. However, ICICI, HDFC and other private banks are not going to reduce interest rates now.
