You can calculate your education loan EMI amount with the help of the mathematical formula: EMI amount = [P x R x (1+R)^N]/[(1+R)^N-1] where P, R, and N are the variables. This also means that the EMI value will change each time you change any of the three variables. ‘P’ stands for the Principal Amount.
In this regard, can I pay back my student loan early?
Why pay off your student loan early? Student loans of a sizeable amount will take years to pay off – especially when you factor in interest accruing on the amount you owe. … As student loans do not come with penalties for early repayment, there is no harm in clearing the debt early.
Likewise, people ask, can you go to jail for not paying student loans?
Can You Go to Jail for Not Paying Student Loan Debt? You can’t be arrested or sentenced to time behind bars for not paying student loan debt because student loans are considered “civil” debts. This type of debt includes credit card debt and medical bills, and can’t result in an arrest or jail sentence.
How can I repay my education loan faster in India?
How to Pay Education Loan Early?
- Begin Early. One of the primary considerations while looking for an education loan is repayment calculation. …
- Create Income. You can start a part-time job and save a lot of money before the repayment period. …
- Save More. …
- Choose a Relatively Shorter Loan Tenure. …
- Consider Balance Transfer.
However, can education loans in India be actually interest-free? The answer is no. Or at least, technically, you cannot avail of an interest-free education loan unless you have availed some economic benefits or academic subsidies from either the government or your institution.
The loan is repaid by the student. Generally, the repayment starts when the course is completed. … 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.
An education loan usually attracts an interest rate ranging from 11 per cent to 15.5 per cent. With that, if the EMI outgo amounts to 50 per cent of one’s current monthly salary, then according to experts one should definitely consider paying off the loan at the earliest.
List of Expenses Covered under Education Loan
- Fees payable to educational institutes.
- Examination/library/laboratory fee.
- Travel expenses/passage money for studies abroad.
- Insurance premium for student borrowers, if applicable.
If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.
Ans: EMI is the acronym for Equated Monthly Installment, an EMI amount is the agreed upon fixed amount for monthly repayments that the borrower of the education loan must pay to the lender in order to pay out the money borrowed.
The loan amount which customers fail to repay on time is known as the Loan Overdue Amount. As it is clear from the name itself, the Loan Overdue Amount is the amount left unpaid even after the due date of payment.
How Long Is The Education Loan Repayment Period Granted by Government Banks? Almost all government banks grant an education loan repayment period of 12 years to 15 years from the end of your moratorium period. This tenure starts once your loan repayment holiday gets over.
Compare Top Education Loan Offers 2021
|Name of Bank||Interest Rate (p.a.)||Processing Fees|
|SBI||6.85% to 8.65%||Rs.10,000 + tax|
|Axis||13.70% to 15.20%||Nil to Rs.15,000 + tax|
|Bank of Baroda||7.85% to 9.85%||1% of loan amount up to Rs.10,000|
|HDFC||9.55% to 13.25%||Up to 1.5% of loan amount + tax|