Education and Career Forum

Hi Friends,
I am going to get an Education Loan for my MBA course. I am going to pay my EMI just after completing my MBA. I am getting an Education Loan from Allahabad Bank. Can I know that if I fail to pay an EMI on time then I have to fine a penalty? If yes, then what percent?

Yes, if you fail to pay EMI on time the compounded interest will be charged on next EMI. Means the amount to be paid will increase every time you miss the due date to pay.

Hence, make sure you pay on time to avoid any inflated interest rates on EMI. It will create problems for you financially.

Yes, there will be penalty if you do not pay EMIs on time. The penalty depends on the concerned bank from which you have taken education loan. Usually you need to pay additional interest as penalty if you miss any EMI. For most of the banks including Allahabad Bank, you need to pay penal interest at the rate of 2% for the overdue amount and the overdue time of repayment.

I have taken education loan for my MBA from Allahabad bank. But i fail to pay my installment against my loan so what will be the penalty?