Oriental Bank cuts education loans rates

OBC has reduced lending rates on education loans after factoring in the market trend and customer feedback.

Taken together with the latest reduction in base rate to 10.5 per cent, the overall reduction in interest rates for a borrower would range from 40 to 115 basis points, depending on the loan slab, Mr S.L. Bansal, Chairman and Managing Director, said. The revised lending rates will apply for new loans only.

For loans up to Rs 4 lakh, the rate has now been pegged at bank rate plus 2.5 per cent against the earlier regime of bank rate plus 2.75 per cent. With the base rate now coming down to 10.5 per cent from 10.65 per cent earlier, the effective rate under this slab will be 13 per cent against 13.4 per cent earlier.

For loans above Rs 4 lakh and up to Rs 7.5 lakh, the revised rate stands at bank rate plus 3 per cent against bank rate plus 3.5 per cent.

For loans above Rs 7.5 lakh, the revised rate stands at base rate plus 2.5 per cent against the earlier rate of bank rate plus 3.5 per cent.