State Bank of India reduced Interest Rate on Education Loan upto 1 Percent

India’s largest bank, State Bank of India on 27 February 2012, announced to reduce its interest rate on education loan by 1 percent.

Under the new rate regime the  interest rate on education loans of amount between 4 lakh Rupees to 7.5 lakh Rupees will stand at 3.25 per cent over the bank's Base Rate as against 4.25 percent earlier.

The bank has also reduced the Interest rates on loans over 7.5 lakh Rupees by 0.25 percent. The interest rate on loans given to students who are studying at premium institutes like IITs, IIMs have also been reduced by 0.25 percent to 2 percent over the Base Rate.

SBI has the lowest base rate among the leading banks in the country. It's Base Rate at present stands at 10 per cent.

  Base rate refers to the minimum rate of lending on which the actual rate that bank charges on loans to its customers is calculated