Interest Rate on Education Loans

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..... Interest Rate on Education Loans
News and Press Release
Dated:- 7-12-2012

Press Information Bureau Government of India Ministry of Finance 07-December-2012 18:35 IST As per directions of Reserve Bank of India, with effect from 1st July, 2010, banks are required to price their loan products including education loans linked with the base rates approved by their respective Boards. .....

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..... Banks are not permitted to resort to any lending below the Base Rates. Accordingly, interest rates on education loans are decided by the bank concerned as per their approved policy. In order to provide relief to the students, the Model Education Loan Scheme of Indian Banks' Association (IBA) provides for certain concessions on educational loans which inter-alia includes: • Simple interest i .....

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..... s charged during the study period and upto commencement of repayment; • 1% interest concession provided by the banks, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment; • 0.5% concession in interest rates is provided for the girl students; • Full interest subsidy has been made available for educational loans disbur .....

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..... sed on or after 1st April, 2009 during the period of moratorium for the students belonging to economically weaker sections from scheduled banks under 'Interest Subsidy' scheme of Ministry of Human Resource Development This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Lok Sabha today. ***** DSM/RS/ka
News - Press release - PI .....

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..... B .....

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