regarding higher interest rate on Education loan
dr. r.k.agrawal
(Querist) 16 July 2011
This query is : Resolved
Dear Sir
I was sanctioned education loan for my MBA education in 2007 from State Bank of India. At that time I was told the intt. rate @ 12% but in this March 2011 I took my return statement, the intt. rate shown was @14% per anum.
Please tell me how could I get relief.
Surbhi
d/o dr. r.k.agrawal
Advocate. Arunagiri
(Expert) 16 July 2011
The oral statements are not counted. What is given in writing will alone stand.
You cheque with other banks regarding the same and compare your interest.
prabhakar singh
(Expert) 16 July 2011
GENERALLY THEY GET INTEREST CLAUSE SUITABLY
WORDED TO TAKE BENEFIT OF RBI RATE HIKES.
Adv.Shine Thomas
(Expert) 17 July 2011
There is no such interest rate for students loan.Each and every year the RBI have passed a relaxation order in Edu.loan interest.Every year you give an application to bank for that purpose.Otherwise they willnot allow such relaxation.
malipeddi jaggarao
(Expert) 18 July 2011
Education Loans in PSBs and SBI are linked with their base rates. If their base rateis increased/decreased, the rate of interest on certain loans including education loan which is linked with base rate will be also revised accordingly. You can enquire with the Bank what is interest clause (which is linked with base rate) at the time of giving loan and what is the present interest rate. There is an increase in base rates of PSBs in the recent past. However as per guidelines, Banks are supposed to advise the customers whenever there is a change in rate of interest. If the Bank does not adhere to it and if you wish to dispute, you can have a dialogue with the Branch Manager. But he will not be of any help in normal course. If you decide to fight, you have represent the Bank that you have not received any intimation relating to increase of rate of interest and you do not wish to pay the interest at the prevailing rate. This is also of academic interest. They will not revise the same, but if you insist for reply, you may go to court of law if you wish so.
