Education and Career Forum

HEy friends can someone tell me that actually What will be the mode of pay for people who are taking education loan from UCO Bank

There are various ways of submitting loans. You can pay only the interest during the entire study period and repay the loan at one time at any time during the study period. For that you need to talk to the concerned branch manager. After your study period, you can repay the loan as a lump sum in one or two installments. Otherwise when you will get job, the bank will deduct a specific amount from your salary so that the loan is repaid. For all these cases, you need to discuss with the branch manager before repaying the loan. He/She will guide you with the entire formalities which are needed to be done to ensure a proof of your repayment of loan.

In case you do not get job after completion of your study period, the bank will give you a time of six months after which it will ask you to repay the loan,be it from any source.

i want to know education loan interest formality pay by govement.plz give me privilage information

Originally Posted by Unregistered

i want to know education loan interest formality pay by govement.plz give me privilage information

You need to be a bit more clear about your question since it has different directions. Anyways, the rate of interest for education loan is around 13.5 percent for normal banks and 12.5 percent for State Bank of India. However it fluctuates from time to time based on the order of Reserve Bank of India. Hence for normal banks it fluctuates between 13.5-14.5 percent while for SBI it fluctuates between 12.5-13.5 percent.

The interest accounted for education loan is purely on the basis of simple interest calculation for the entire study period and six months after that. After those six months it will be calculated as compounded interest.

You can pay the interest during the study period or you can pay it after your study period while repaying the loan. However, you need to keep in mind that if you pay the interest regularly during your study period you can get a rebate or discount of 1% interest in the future while you will be repaying the loan.

I took education loan from UCO bank. I have been paying interest which kept on increasing every six months based in my semester tuition fees) during my study period. After I got job, I was asked to pay specific amount ( this amount included principle amount interest) every month for a period of 120 months.
Is this the correct process?