Education and Career Forum

Hello sir, I was taken education loan to study B.Tech in Civil Engineering. Now I have passed but yet not paid amount of loan. What will be happen if I can't pay the amount of an education loan?

There will be repayment tenure of around 10 years for every education loan you take. You can pay the education loan amount in partly installments. If you don't repay the education loan to bank, the bank will send you notices intially and it will take a legal action against you and if you have provided any property as a Collateral Security, they may seal your property. So, I suggest to repay the loan amount instead of not paying the loan amount.

Any education loan which is sanctioned comes with some security and guarantor in most cases. If you fail to pay back the loan in form of EMI then interest will increase on the EMI not paid on time.

In this way it will keep on increasing and mount pressure on you. Once the bank thinks that you are deliberately not paying the EMI then they will use other methods to get the amount which will be mostly through the guarantor or security.

The bank will wait for six months from the year of completion of your B.Tech course. Then it will send a notice to start the repayment. If you fail to do so, then the co-borrower will be contacted and asked to start repayment. If the co-borrower fails to start the repayment, then third party guarantor is contacted. If all parties fail to start repayment, bank can file a case against you and blacklist you in account of Reserve Bank of India so that no bank offers you any loan in future.