Buying education loans from Oriental Bank of Commerce would now be easier on students' pockets. The bank announced an interest rate cut across various education loan slabs.
The bank recently reduced its base rate to 10.5%. The proposed rate cuts would reduce the burden on the students by 0.4% to 1.15% depending on the principal amount. The new lending rates would apply only on new loans.
The lowest slab for education loans offered is up to Rs. 4 lakhs. For this slab the interest rate would be 13%, which is 2.5% above the base rate. Previously the interest rate for same slab was 13.4%.
The second loan slab worth Rs. 4 to 7.5 lakhs would cost 13.5% compared with 14.15% before the rate cuts.
For the top slab of Rs. 7.5 lakhs and above the bank lowered the interest rates to 12.5%, the same loan previously would have cost 14.15%.