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

"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 4 lakh would be cheaper by 25 basis points, while interest rate on 4-7.5 lakh loans has been reduced by 0.5 percent, he said.

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

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

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 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 5 for fund transfer through NEFT up to 1 lakh.

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

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

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

Besides, the bank has also announced loyalty benefit of 0.25 percent 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 percent or at the base rate for the existing customer effective today. The earlier rate was 10.90 percent.