Education and Career Forum

Is there any penalty on not paying educational loan monthly installments i.e. EMI on time? I have paid my education loan on time and I gave more amount than EMI. But, I was not paying paying on every month. I paid twice a month. Now are there any penalty charges?

If you have repaid all your education loans on time, then no need to worry about anything. The issue with loans comes when you delay EMI payment which makes you a defaulter. The amount keeps rising with interest on interest, which with time can become a very big amount.

Hence, you should never delay your loan EMI because banks charge compounded interest on your loan amount. The amount can become double your loan amount with time, which is surely not a good thing for any person