Education and Career Forum

hi m seema. m final year student. I took the loan for b.pharmacy. now I want to know the process of return the loan and how.

Hello Friend !!

As you have already taken the education loan you would should be aware of returning back the same.

Usually there are different methods to Repay the education loans or any other loans.

The method of paying will be decided at the time of Loan Application.

Since you have availed the loan and you would have already made an agreement of repaying the loan.

But let me inform you the various methods to repay the loans.

Best and most preferred options in India is, first you avail the loan and then pay the interest every month.

In this method, your Whole Loan amount will not get increased and when you start paying the actual amount you can do it in few EMI's.

The other method is linked to your income, which states that you will start paying to the loan when you get a job after your education.

But in this process, the interest for all the years is added to actual amount and you should start paying EMI's for that amount (Actual Loan Amount+Interest till start of repaying).

And do not worry if you are not employed right after you finish the education, because any bank in India will extend the Loan tenure till you get a job.

Usually the tenure can be maximum extended up to 10 years for loans up to Rs 7.5 lakh and 15 years for loans above it.

The selection of the method totally depends on your current finance position.

Before choosing any of the option first go to your bank where you have taken the loan and inquire about the terms and conditions regarding repayment and what all you have accepted or signed before taking the loan.

Because the methods will be different for different Loan Amounts, if the Loan Amount is below 4.5 lacs these methods can be availed and if it is more than 5 to 10 then they may change.

All the Best !!

Certificate courses from recognized affiliated institutes and evening courses certified by government in India are eligible for the loan. If your course fee is between Rs 4 lakh to Rs 7.5 lakh, you need a guarantor who promises to pay the amount in case you fail to pay back the loan. You need documents like passport size photo, income proof/latest income tax return, last 6 months bank account statements during the sanctioning. During RBI meetings, interest rates for loans are decided and hence EMIs fluctuate around 12.5-14.5 per cent. There is also a relaxation provided from the government’s side. Recently, it has launched a scheme to provide full interest subsidy during the period of course and one year or six months after getting job.