Education and Career Forum

What about interest money when i do mtech after taking loan in btech? Actually I had taken loan in B.Tech for b.tech but used it for m.tech.

Education loans are sanctioned as per the course one student is taking. If it is used for some other purpose then either the loan will not be reimbursed or the interest will be charged as compound interest. Normally for education loans, simple interest is charged on the loan amount for the entire study period and till six months after that. After that interest will be compounded annually.

Since you had taken loan for B.Tech course so till six months after your B.Tech course, it will be incremented as per simple interest and after that it will be incremented as compounded interest. If you had taken any installment of the loan amount for paying the fees in your B.Tech course, then simple interest will be accounted on that amount. After six months of your B.Tech course the net amount will be accounted as principal and compound interest will be accounted on it. Whatever installment of the loan amount is reimbursed to pay the fees of your M.Tech course, it will be added to the previous amount and compound interest will be accounted on it.

You are eligible for the education loan if you wish to pursue M Tech. You have to apply for the loan. You need to visit the nearest bank branch where you and family members hold accounts. Your merit score will decide the sanctioning part as bank officials check the borrower’s credibility. Also, you need to clear the first loan before seeking the second one.