Education and Career Forum

Dear sir, I am studying in 3rd year of BE with Mechanical stream. I have taken an education loan from IOB last year. Now the bank manager ask for interest to the withdrawal loan. As per CSIS there is no interest for loan taken during the course and after 6 months of completion of course. Should I pay the interest?

It is your wish to pay the interest or not during the study period. The bank will definitely advice you to pay the interest during the study period to facilitate its income. You can also receive a subsidy if you pay the interest regularly during the study period. You can get a rebate of 1℅ in the interest rate as subsidy if you pay the interest during the study period. As per rule, the interest will be computed as simple interest for the entire study period upto completion of six months from the year of passing.