United Bank of India on Tuesday said it has reduced the interest rate on its education loan upto Rs 200,000 from ten per cent to nine per cent effective May 1.
The bank said in a release that interest rate on loan above Rs 200,000 and upto Rs 400,000 would be 9.50 per cent and for loans above Rs 400,000 the interest rate would be 10 per cent from 11 per cent earlier.
There is a concession of 0.50 per cent if the interest rate was serviced during the study period, the release said.
Moreover, the Government of India has come out with a pilot scheme of two per cent interest subsidy on education loan upto a limit of Rs 400,000 to bright and needy students for higher studies that came into effect from March 1.