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State Bank of India has cut the interest rates on education loans by 25-100 basis points, although it has retained its Base Rate at 10 per cent.
The bank has reduced the margin above the Base Rate for the loan.
Following the announcement of the third quarter monetary policy in January, when the Reserve Bank of India had cut the Cash Reserve Ratio by 50 basis points, Mr Pratip Chaudhuri, Chairman, SBI, had said that there could be softening of lending rates in some select segments which are seeing good growth and have lower delinquencies.
As on December end, SBI's education loan portfolio was to the tune of Rs 12,402 crore.
Earlier this month, Central Bank of India had cut rates on home loans for a period of one month and also waived off the processing fees on home loans.
Bank of Maharashtra had cut its Base Rate by 10 basis points, with effect from February 21 and waived off processing charges for loans up to Rs 25 lakh.
Banks are cutting loan rates as they try to shore up their loan portfolios as the financial year draws to a close.
According to the Reserve Bank of India's fortnightly credit report, as on February 27, the non-food credit was at Rs 43,82,390 crore, which was a year-on-year growth of less than 16 per cent. The RBI's target for credit growth in the current fiscal is 18 per cent.
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