Education and Career Forum

I have applied for Education Loan for my sister’s education. She was doing B.Tech but unfortunately she met with an accident and died. I have taken education loan of Rs. 3.7 Lacs for her B.Tech. My question is, as she completed her 1st semester then I have to pay all the sanctioned amount with interest or the bank will reduce the amount?

Originally Posted by Unregistered

I have applied for Education Loan for my sister’s education. She was doing B.Tech but unfortunately she met with an accident and died. I have taken education loan of Rs. 3.7 Lacs for her B.Tech. My question is, as she completed her 1st semester then I have to pay all the sanctioned amount with interest or the bank will reduce the amount?

In general, if a student dies without completing the course, education loan will be recovered through co-applicant (parents). Banks also insure the life of the borrower, so in case of death the loan amount is paid back by the insurance company. Therefore, you have to contact the concerned bank branch for more details regarding this. The above given are the two ways of recovering the money if a student died without completing the course.