31st December 2015, 02:05 PM
Posts: n/a

Why is the interest rate is more for educational loan than other loans?

Why is the interest rate is more for educational loan than other loans? Can someone please give me the information on the same. I just don't understand why only educational loan have so much interest rate when compared with others. Awaiting for the answer.

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31st December 2015, 09:43 PM
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Join Date: Dec 2013
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Posts: 8,583
Default Re: Why is the interest rate is more for educational loan than other loans?

The rate of interest is more in case of education loan as compared to other loans. This is because :-

- The interest is accounted as simple interest for the entire study period rather than compound interest as in case of other loans.
- There are many subsidies given by the banks for various reasons in case of education loan which are not available in other types of loan.

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