Sir
I have taken an education loan of 20 lakhs in 2014 form SBI when the base rate regimen was in vogue. The moratorium period ended in 2017 so I am now paying an EMI of around 40000 pm from june of 2017 with 12.55 % being the interest rate. Now with the new MCLR regimen having very low rate what do you suggest me to do and the process as the RACPC guy in SBI says they cant change the interest rates for education loan taken prior to 2014. Is this true?
thanks in advance
2 Answers
Hi,
MCLR is applicable to all loans made on or after April 1, 2016. If you borrowed on or before March 31, 2016, your loan will still be linked to base rate. However, you can switch from base rate to MCLR at mutually agreed terms between you and the bank. The bank can charge you a fee for the switch. I believe that it is possible. (assuming it is a floating rate loan).
Related article :
https://www.relakhs.com/mclr-new-lending-rate-bank-loans-w-e-f-apr-2016-details-components-review/
thank you sir for the quick response ….my other query is that is the MCLR switch can be done for education loans … the RACPC guy in SBI says its only for home loans the switch is possible. so what can i do in this regarding
Hi,
I think the switch is possible. You may try checking this condition by visiting some other SBI branch.
Also, do note that one can transfer an Education loan from one bank to another bank. So, you may try this option as well, in case if SBI does not accept for the switch.
sir ….thank you once again for your affirmative answer … this time i took the prints from relakhs and sbi website and made the person incharge understand about the change and the possibility of switch to mclr … he grudgingly admitted that i was right and has changed the loan interest rate to 8.65 % from 12.55% earlier… thank you very much sir ….
You are welcome. Glad to know that you will be paying lesser Rate of Interest..
Please login or Register to submit your answer