OBC cuts interest rate on education loans by up to 1%

State-owned Oriental Bank of Commerce (OBC) has reduced interest rate on education loans by up to 1%.

"We have slashed rates on education loans across the board effective May 15," OBC Chairman and Managing Director S L Bansal said.

With the reduction, education loan up to Rs 4 lakh would be cheaper by 25 basis points, while interest rate on Rs 4-7.5 lakh loans has been reduced by 0.5%, he said.

Interest rate on education loan up to Rs 4 lakh would now be available at 13%.

The maximum reduction of 1% is on education loans above Rs 7.5 lakh. The rate has been reduced to 13%.

Besides, the bank has also slashed charges on electronic transfer of funds to promote cheque-less transfer.

"We have completely waived-off charges for transfer of funds up to Rs 1 lakh through NEFT," Bansal said.

National Electronics Fund Transfer (NEFT) is an electronic fund transfer system meant for retail customers. It helps in quick transfers to any branch of a bank anywhere in the country through a payment gateway.

Currently, banks other than OBC are charging Rs 5 for fund transfer through NEFT up to Rs 1 lakh.

At the same time, it has lowered charges on NEFT outward payments beyond Rs 1 lakh and up to Rs 2 lakh. The remitter will now be charged Rs 10 against the earlier charge of Rs 15.

However, there is no change in charge on outward remittances beyond Rs 2 lakh, which is Rs 25 per transaction.

Last week, the bank slashed interest rates on home and car loans by up to 1.5%.

Besides, the bank has also announced loyalty benefit of 0.25% on the card rate for existing existing customers with satisfactory track record.

As per the revised rates, interest rate for up to Rs 30 lakh would be available at 10.50% or at the base rate for the existing customer effective today. The earlier rate was 10.90%.