New Delhi, May 06: Bank of Baroda will provide 2% interest subsidy on educational loans up to Rs.4 lacs for higher studies to bright and needy students. The current effective interest rate will therefore stand reduced to 9.25% per annum. The interest subsidy will be applicable to new accounts for loan amount of Rs.4 lacs. The period of subsidy would be the duration of the course + 5 years. Students who have secured 60% marks in qualifying examination and the income of their parents is not more than Rs.2.50 lacs per annum will be one of the eligibility criteria. No collateral is required for such loans.
This initiative would make educational loans to needy and meritorious students more affordable.
Bureau Report