NEWS & ADVICE : EDUCATION LOANS
Education loan spared from rate hikes
By Vaibhav Aggarwal
Aug 27, 2008
Print    Email    RSS   

Most commercial banks, including the SBI and PNB have decided not to increase interest rates on education loans. The decision covers both existing and new loans.

The students opting for education loan to support their higher studies sure have a cause to celebrate.

The banks have been instructed by the Finance Ministry not to tamper the lending rates of the priority sector. The ministry said "the interest rates of the priority sector, particularly education, agriculture and housing should remain untouched up to a loan amount of Rs 30 lakh. Since the public sector banks are the major players in providing an education loan, private lenders would not have a role to play in this regard."

A senior official of the finance ministry stated, "Almost all the public sector banks have agreed to our suggestion of not raising interest rates for most of the sectors coming under priority sector lending including education loans."

Earlier in August Finance Minister, Mr. P.Chidambaram discussed this matter with the chief executives of the state owned banks. Most of the banks agreed on keeping the lending rate of education loan constant. However a few of them had objected. A bank official said, "One or two banks had some objections which are also likely to be sorted out soon."

Banks have raised the Prime Lending rate by 75 to 100 basis points. SBI, PNB, Allahabad Bank and Bank of Baroda are some of the banks that have increased their PLR and thereafter revised the sector specific loan rates. However these banks have not revised the lending rates of education loan. Infact, some of them have also decided to keep auto loans untouched. Since the new home loans comes under the priority sector, the interest rates have not been changed for an amount up to Rs 30 lakhs.


 

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
A chronicle of excesses by loan recovery...
Carnival of Indian Personal Finance Blogs #3
Bank loans that could glitter for you
Carnival of Indian Personal Finance Blogs #2
Complete Guide to NRI Education loan


ROPAR: CaℒL Giℛℒ In Kurali 09855660911...
Why Pitampura Tutors (Ph:- 9911742311) & Private...
kala jadu in hindi 9636854282

NEWS THIS WEEK
Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive