Education and Career Forum

Dear Sir,
I would like to get an Education Loan but don't want to pay interest during my course studies. How I can get an Education Loan with no interest during my study period? What will I do for that? My intermediate exam percentage is 80.6%.

In order to motivate and help students from economic weaker section of society, Central government has made rule that interest charged on Education loan will be paid by Central government through interest subsidy.

Though bank will charge interest during course period but once course is completed, interest on education loan upto that period is waived off and student need to pay only principal amount.

Banks and Central government give one more year after course as interest free period to repay the loan but after interest will be charged and candidate needs to pay along with principal amount.

There is no problem in opting for education loan without having to pay interest during the entire study period. You can definitely opt for education loan and not pay the interest during the entire study period. However, the amount outstanding at the end of course while you start repayment will be the loan amount + interest of the entire study period. There is no need of doing anything extra for this; you need to proceed in normal way and you need out pay any interest during your study period.

Interest will be charged on amount of loan sanctioned for education but they are waived off as the amount of interest is given to bank by Central Government of India. This scheme is called Interest Subsidy Scheme.

If you are pursuing Bachelor of Technology then upto one year after completion of your degree, no interest will be charged and after that interest will be charged and candidate will have to pay along with amount sanctioned.