What happens if education loan is not repaid in India?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Do we have to pay interest on education loan?

The borrower can start the loan repayment after the completion of the course or when he/she starts earning. This grace period is called a moratorium. Though the borrower is not required to pay the EMIs during the moratorium period, the lender charges interest (simple interest) which is added to the principal amount.

How is education loan repaid?

The loan is repaid by the student. Generally, the repayment starts when the course is completed. Some banks even provide a relaxation period of 6 months after securing a job or a year after the completion of studies for repayment.

When should we repay education loan?

Almost all government banks grant an education loan repayment period of 12 years to 15 years from the end of your moratorium period. This tenure starts once your loan repayment holiday gets over.

How do I start repaying my student loan?

The most common method to keep your education loan repayment organized and self-driven is EMI (easy-monthly-installment). EMIs are fixed amount of sum decided at the time of taking a loan which students can pay every month to repay the study loan step-by-step.

What is the margin for education loan upto Rs 4 lakhs?

There is no margin for education loans upto Rs 4 Lakhs. For loans above Rs 4 Lakh, the margin for studies within India is 5\% and for studies overseas is 15\%. What are the documents required at the time of disbursement of education loan?

What is the eligibility criteria for MBA education loan?

The eligibility criteria for an MBA education loan is as follows. Candidate must be a citizen/resident of India. Candidate must have secured a seat in an MBA course in selected colleges. These are the basic requirements that are common across most of the banks.

How to save money with an MBA study loan?

If your institute falls under the category of premium MBA college, you will get MBA study loan at low interest rate and during the repayment tenure of 7 years or so, you will be able to save a huge amount as in the initial years even a 0.25\% hike in interest rate can make a cumulative effect coming in lakhs at the end. 3.

How to save Rs 2 lakhs on your MBA admission fee?

MBAUniverse.com Research team has worked out the economics on how you can save at least Rs.2 lakhs on your admission fee, if you opt for study loan from the right financial institution after negotiating a little. All the banks have their own study loan schemes to fund the MBA study in India and abroad.