The Central Provident Fund (CPF) Education Loan Scheme is for the payment of tuition fee for full-time undergraduate programmes. It cannot be used to pay for the compulsory miscellaneous fees and hostel fee. You can use your own, your spouse’s or your parents’ CPF savings to pay for your tuition fees.
One may also ask, how can I use CPF for education?
To apply under CPF Education Loan Scheme, the student must file an application on the CPF website under My Requests. An e-mail notification will be sent to the CPF member, who then needs to login to the CPF website within 14 days to approve the use of their CPF savings.
Herein, how is education loan interest calculated?
So, if you take an education loan of Rs 10 lakh with an average interest rate of 12%, for 2 years the EMI will be: P = 10 lakh, R = 12/100/12 (You convert to months), N = 2 years or 24 months EMI = [10,00,000 x 12/100/12 x (1+12/100/12)^24] / [(1+12/100/12)^24-1] EMI = Rs 47,073.
Is interest charged on education loan?
The loan is repaid by the student. … During the course period, the bank charges simple interest rate on the loan. The payment of simple interest during the course period lessens the equated monthly instalment (EMI) burden on the student for future repayments.
Student loan interest rates are expressed as an annual percentage rate. Federal rates are set by Congress each year. Because federal loans are set by the government, the rate you get will not change based on your personal financial circumstances.
Top Banks Education Loan Interest Rates
|Banks/NBFC||Loan Amount||Rate of Interest|
|Axis Bank||Up to Rs. 4 Lakhs||15.20%|
|Loans greater than Rs. 4 Lakhs and upto Rs. 7.5 Lakhs||14.70%|
|Loans greater than Rs. 7.5 Lakhs||13.70%|
|Bank of Baroda||For all loan types and amounts||8.50% onwards|