Education and Career Forum

My dream is to study B.Tech and become an Engineer. But I belong to a poor family and my parents wouldn't afford the expenses of B.Tech course. So, I have decided to take Education Loan. I have an Account in Bank of India and after searching alot I came to know about the Star Education Loan of this Bank. Can I know that if I take Rs. 5 Lacs for me B.Tech course under this scheme then how much EMI I have to pay and what will be the repayment period?

EMI depends on various factors - your outstanding loan amount, the prevailing rate of interest and the repayment period you choose. Accordingly the bank will calculate your EMI amount and let you know. You can opt for a 7 years repayment plan wherein your EMI will be around 8000. You can even opt for more number of years as repayment period upto 10 years. You need to start the repayment once you completed 6 months in job or 1 year from the date of your passing B.tech course, whichever is earlier. You can even start the repayment earlier by notifying the concerned branch through application that you want to initiate the repayment.

EMI will be calculated according to the interest rate and time period to repay the loan. The rates changes according to the RBI. Also, different banks have different rates for education loan.

If you belong to a poor family, then you can also get subsidy on interest rates, which is a central government scheme. Repayment of loan automatically start after completion of course which is mostly after six months of getting a job or after one year of course completion. EMI will be decided according to the size of the loan and time period.