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What is the current interest rate for educational loans in India?
Asked on 13 November 2007 at 3:32 PM.
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Answered by Studyplaces Counsellor Student Loan
Interest Rate on Education Loan:
Some banks offer a 'fixed' rate of interest while others offer 'floating' rate of interest on education loan. If the difference between fixed and floating rate is only about 1 per cent, it is advisable to opt for fixed rate as education loans have shorter repayment tenures of 5-7 years.
Many banks do not offer genuine fixed interest rate where the interest rate remains fixed for the full tenure of the loan.
They, typically offer a fixed rate loan with a reset clause. This means the bank will have the right to revise interest rate after 2 or 3 years or whenever the bank feels it necessary to increase interest rate. So make sure that you take a genuine fixed rate loan. If it is a fixed rate with reset clause, a floating rate may be a better option.
State Bank of India charges the following interest rate:
For loans upto Rs.4 lacs - 12.75% p.a. Floating
For loans above Rs.4 lacs - 13.75% p.a. Floating
For more details please check the following link:
http://www.statebankofindia.com/viewsection.jsp?id=0,1,20,118 or you may contact us at counsellor@studyplaces.com
Comments
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u can even refer ur frnds to this program and get some kewl prozes!!
http://www.credila.com/referral.html
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