Education and Career Forum

Hello,
When I was applied to the Educational Loan, the Manager said me, "You don't need to repay the interest during study period". But now the Manager was changed. He told me that you should repay the interest during study period. But now I am in crucial situation. So I can't pay the interest. So what I have to do to get my final year loan amount from Indian Overseas Bank?

It is not a compulsion that you need to repay interest during the study period. Usually the bank asks to do so since interest is their income and it builds confidence of the bank in you. Moreover, you can get an additional rebate of 1% in the interest rate in various banks. So you need to talk to the bank manager to clarify whether it is a mandatory clause or not. Review the loan documents. If such clause is not mentioned, you can either sort this out with the bank showing that or take legal action.