RSS Feed
Twitter
8:08 PM
Blogger
After witnessing a weakening rupee inflate their overseas education budget in the last three months, students aspiring to study abroad finally have some news to cheer.
Public sector banks - Bank of India, Central Bank of India and Union Bank of India - slashed their base rates by 25 basis points to 10% last week, resulting in reduced interest burden for students and their parents. Canara Bank, which also slashed its rate, is offering the lowest rate of 9.95%.
Since education loans are linked to base rate, students aspiring to take education loans, will benefit with banks lowering rates. Other PSU banks are also expected to lower rates, bank officials said.
The reduction in base rate will not only help new applicants for loan but existing students who have borrowed will also benefit with the reduction in rate.
However, among government owned banks, State Bank of India has said that it is unlikely to reduce rates immediately as has pegged its base rate at the lowest - 9.70% - among its peer banks.
Students, seeking education overseas, are concerned about the sharp depreciation in the rupee, particularly because this increases their quantum of education loan. Rupee closed 59.60 after it touched an all time low of 61.21 few days ago. Rupee has fallen 12% since May.
Source: EconomicTimes
Public sector banks - Bank of India, Central Bank of India and Union Bank of India - slashed their base rates by 25 basis points to 10% last week, resulting in reduced interest burden for students and their parents. Canara Bank, which also slashed its rate, is offering the lowest rate of 9.95%.
Since education loans are linked to base rate, students aspiring to take education loans, will benefit with banks lowering rates. Other PSU banks are also expected to lower rates, bank officials said.
The reduction in base rate will not only help new applicants for loan but existing students who have borrowed will also benefit with the reduction in rate.
However, among government owned banks, State Bank of India has said that it is unlikely to reduce rates immediately as has pegged its base rate at the lowest - 9.70% - among its peer banks.
Students, seeking education overseas, are concerned about the sharp depreciation in the rupee, particularly because this increases their quantum of education loan. Rupee closed 59.60 after it touched an all time low of 61.21 few days ago. Rupee has fallen 12% since May.
Source: EconomicTimes
0 comments:
Post a Comment