Education and Career Forum

Sir, I have a doubts regarding my education loan taken from bank. I want to know about the interest rates. My question is, suppose I have taken education loan and did my MBA through it. Then the interest rates is calculating from when? From the day of taking education loan or after completing MBA?

Interest rate is charged on the total amount after the completion of the course when you get the job. There is a time period allotted to you to repay the amount in the form of EMI which will be calculated according to the interest rates charged by the bank.

Hence, once you complete the course and start working for any company or after six months of completion of the course (whichever is earlier) the banks start your EMI. The interest is not charged from the starting of your course.

Originally Posted by Unregistered

Sir, I have a doubts regarding my education loan taken from bank. I want to know about the interest rates. My question is, suppose I have taken education loan and did my MBA through it. Then the interest rates is calculating from when? From the day of taking education loan or after completing MBA?

Actually, the rate of interest will be charged from the day when the loan gets disbursed, and you have to repay the loan amount with interest after completing moratorium period to pay some bank will collect on a monthly basis, and some public bank provides the low rate of interest compare to Private bank.

See, I will explain with you the simple Example. Just have a look.

If you have taken Education Loan from a Bank "X" to pursue M.B.A FOR Rs. 10 Lakh by satisfied all the terms and conditions of the Bank "x".

In general M.B.A is a course for 2 years. That means Four semesters.

In 2019, April you have taken Education Loan for course year starting in June 2019, then you must have been given your admission to Bank Officials for further disbursement of Loan.

Now They have released the initial disbursement out of 4 disbursements that means for 4 Semesters.

In this way you have availed first Phase of Loan. Here one more important point you must keep it in your mind is there is a moratorium period of 1 year or six months righter after getting the job which ever is less. You need to start your First phase of repayment.

During moratorium period means 2 years +one year or six months after getting job , till then the interest on the availed amount will be Simple Interest.

After moratorium period you will be charged with Compound Interest.

See, I will explain with you the simple Example. Just have a look.

If you have taken Education Loan from a Bank "X" to pursue M.B.A FOR Rs. 10 Lakh by satisfied all the terms and conditions of the Bank "x".

In general M.B.A is a course for 2 years. That means Four semesters.

In 2019, April you have taken Education Loan for course year starting in June 2019, then you must have been given your admission to Bank Officials for further disbursement of Loan.

Now They have released the initial disbursement out of 4 disbursements that means for 4 Semesters.

In this way you have availed first Phase of Loan. Here one more important point you must keep it in your mind is there is a moratorium period of 1 year or six months righter after getting the job which ever is less. You need to start your First phase of repayment.

During moratorium period means 2 years +one year or six months after getting job , till then the interest on the availed amount will be Simple Interest.

After moratorium period you will be charged with Compound Interest.