Public sector lender IDBI Bank has announced a rise in its education loan rates as well as rates for fixed deposits. The rate hike has been upto 50 bps.
"We have not hiked the base rate for now...the demand for credit is slow and we have also decided to look at the liquidity conditions," executive director and chief financial officer RK Bansal said.
The interest rates on education loans in the range of Rs 7.5 lakh and Rs 20 lakh have been raised by 25 bps while for loans upto Rs 7.5 lakhs, the interest rates have been slashed by 25 to 50 bps.
"The re-jigging in educational loans is to align ourselves with the market and will also help us achieve priority sector lending targets," Bansal said.
On the fixed deposit front, for deposits less than Rs 15 lakh, the 270-365 days deposit will yield 9% interest.