Bank of Rajasthan, a leading private sector bank reduced the education loan rates by one percent (100 basis points) with immediate effect.
The bank has lowered the rates under the Shiksha Sarathi scheme. This scheme is a part of Sarba Shiksha Abhijan (SSA). SSA aims at providing useful and elementary education to all children in the age group of 6-14 by the year 2010.
According to the revised rates, the loan would be available at 12 percent as against 13 percent earlier irrespective of amount of loan. Now the education loan is available at 3 % below BPLR (Benchmark Prime lending rate). The bank has a customer base of over two million and is present in 286 cities, 22 states and 2 union territories.
Apart from this, Bank of Rajasthan has reduced its home loan rates. It has tied up with Hyundai motors India limited to offer vehicle finance. Bank of Rajasthan has also collaborated with Hero Honda Motors Ltd. with the aim to offer retail financing facilities to two-wheeler customers at lower interest rates. The bank is also planning to raise Rs. 250 crore from the Capital market to fund its expansion plans.