Education and Career Forum

How to get education loan subsidy if unable to pay it on time?

The Central Sector Interest Subsidy Scheme was launched by the Ministry of Human Resource Development in 2009.

Features:-

The features of this scheme are as given below:

The interest on the education loan during the moratorium period is borne by the government.

Moratorium period is course period plus one year.

No collateral required.

No third-party guarantee required.

For professional and technical courses within India only
Maximum loan amount is Rs.7.5 lakh.

How to get education loan subsidy if unable to pay it on time?

Generally, when the loan amount is small – usually less than Rs. 4 lakhs – the lender sanctions unsecured education loans. When the loan amount is low, the borrower can take an unsecured education loan – without submitting collateral or requiring a co-signer.

If this is the scenario, the lender initially sends you notices when you don’t repay the EMIs on time. If you do not respond, then the lender considers you as a defaulter. Once you have been classified as a defaulter, your credit score starts to fall rapidly.

If a candidate finds it difficult to repay the loan , then must talk to their lender to restructure the loan.

They must always go for a collateral loan to avoid any burden

Pay interest during moratorium

The Central as well as state Government provides subsidy to make loans more affordable .
This subsidy is mainly available to economically weaker section of the society, whose gross annual income doesn't exceed 4.5 lakh.
The interest accrued on the loan during the course plus one year moratorium will be paid by the Government.