RATES OF INTEREST CHARGED BY STATE BANK OF INDIA
(Referred to in Rule 3 of Income Tax Rules)

Purpose of Loan As on 1.4.2003 – relevant for Financial Year 2003-04 As on 1.4.2004 – relevant for Financial Year 2004-05
Housing 9% upto 10 years
9.5% beyond 10 years
7.75 % upto 5 years
8.25 % from 5 – 15 years
8.50 % from 15 – 20 years
Car 10.25% upto 3 years
11 % beyond 3 years
9.5% upto 3 years
10.25 % from 3 – 7 years
Education 10.85% upto Rs 4 lakhs
11.85 % beyond Rs 4 lakhs
10.50% upto Rs 4 lakhs
11.50 % beyond Rs 4 lakhs
Personal 13.35 % 12.75 %

Source : Article published in The Chartered Accountant, May 2004