BoB student loans at 9.25%

Bank of Baroda has decided to provide a 2 per cent interest subsidy on educational loans up to Rs 4 lakh (Rs 400,000) for higher studies.

With this subsidy, the effective interest rate stands reduced to 9.25 per cent per annum, the bank said in a media release on Monday.

The interest subsidy would be applicable to new accounts for loan amount of Rs 400,000 and the period of subsidy would be the duration of the course plus five years, it said.

Students who have secured 60 per cent marks in qualifying examination and the income of whose parents is not more than Rs 250,000 per annum would be eligible, the bank said adding, no collateral was required for such loans.