A recent press report said that Public sector lender IDBI Bank has hiked interest rates for selected category of educational loans and also retail term deposit rates by up to 50 basis points but left the base rate unchanged.
Reports said that in spite of the rise in the key policy rate s by the reserve bank of India, the banks have not taken quick steps in increasing the interest rates as credit off take is weak. IDBI has also hinted at a move to hike its lending rates on the policy review day. The bank has decided to reprice its assets on the education side.
Reports added saying that the city-based lender has decided to increase the lending rate by 25 basis points on education loans of between Rs 7.5 lakh and Rs 20 lakh, while for loans up to Rs 7.5 lakh, it has cut the rates by between 25 and 50 bps. The bank has not reported any increase in the rate of its loans such as home loan, personal loan, car loan etc.
Mr. Basal told the press that the re pricing of educational loan is to align ourselves with the market and will also help us achieve priority sector lending targets. He said that deposits under Rs 15 lakh in the 270-365 days maturity will now yield 9 per cent, up 50 bps.