Central Bank not likely to reduce rates

Taking a cue from its peers, state-run Central Bank of India is planning to cut rates by 25 to 50 basis points on a few retail products, but the bank has no intention to include the most sought after home loans and educational loans in the list. “As we are already giving concessions on home and education loans, there was no need to revise them downwards at this moment,” Central Bank’s chairperson and managing director, HA Daruwalla said. The bank’s home loan rate is currently at 10.5% in the fixed rate category and 9.5% in the variable floating rate structure. The rates are for loans up to Rs 20 lakh.

Talking to reporters on Wednesday, on the sidelines of Central Bank’s new agreement with Thomas Cook to offer MoneyGram international money transfer service in Mumbai, Daruwalla, said, “We can’t bring down our interest rates until our cost of funds was lowered, still, we are seriously thinking of reducing our rates within the range of 25-50 basis points on certain retail products in the near future”. Some of the retail products that are likely to see a rate-cut by the bank include Cent Trade, Cent Mortgage, and loans being provided to sectors like SME, SSI, and cold storages.

On the strategic alliance with Thomas Cook, Daruwalla said that in addition to increasing the bank’s fee-based income, the agreement would also strengthen their customer base, which was hovering around 2.5 crore at present.

Now get education loan online at BOM

On the eve of the New year Bank of Maharashtra has launched online sanction of Education Loans.

With a view to provide impetus to education, quick financing to the younger generation, the Bank has launched an On-line sanction of Education loan through its select branches across the country. Any student can apply for education loan by logging on to the Bank’s website and submitting the application online. The student will get auto reply and sanction in principle On- line. The student can avail the loan after completing the formalities at the concerned branch.

Under Education loan scheme, a student can avail upto Rs.10.00 lacs for studies in India and upto Rs.20.00 lacs for studies abroad.

Bank of Maharashtra with its motto- ‘One family One Bank’ takes up this task of providing an opportunity to the family for providing education to their children.

Coincidently, this has come at a time when the Honorable Prime Minister on Friday the 28th December 2007 termed the 11th year plan as ‘India’s educational plan’.

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