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The new rate of interest linked to EBLR (External Benchmark Lending Rate) came into effect from 22nd June in SBI which is beneficial for new Education loan borrowers. The existing borrowers can switch over to the new facility by paying a one time switchover fee of Rs.500/-, provided the account must be regular at the time of switchover.
Henceforth the rate of interest is only 8.65% for the Student loan scheme. There is 0.50% concession in interest for girl students. If the student is availing Bank’s insurance coverage or assigning any other existing policy in favour of the bank, there is another additional concession in interest rate of 0.50%. Education loans up to Rs.1.50 crore for pursuing education abroad also have the above interest rate criteria.
The rate of interest for Scholar loan scheme provided to meritorious students for pursuing courses in reputed institutes is further lower. The reputed institutes will be identified by the Bank and will be graded as AA, A, B & C.
Interest rate structure is as below…
- For AA listed institutes, the rate of interest is 6.85% for a loan with a co- borrower and 6.95% for loan without co- borrower.
- For List A institutes, All IIMs and IITs will be having 7% and other institutes will be having 7.15%.
- For List B institutes, All NITs will be having 7.15% and other institutes will be having 7.65%.
- For List C institutes, All NITs will be having 7.15% and other institutes will be having 8.65%.
Apart from that, collaterally secured education loans of other Banks will be taken over by SBI at the rate of 8.65%.