Loans
Education Loan
Education finance for higher studies at recognised institutions in India and overseas, covering tuition and the associated costs the institution letter supports. The distinguishing feature is the moratorium: repayment normally begins after the course ends rather than in the month after disbursal.
What you get
- Studies in India and abroad at recognised institutions
- Tuition, examination, hostel and equipment costs where the lender permits
- Moratorium during the course, with repayment beginning after it ends
- Co applicant required by most lenders, usually a parent or guardian
- Collateral typically required above a threshold set by the lender
- Disbursal in tranches directly to the institution against demand letters
FAQ
About education loan
Does interest stop during the moratorium?
Repayment pauses; interest usually does not. It accrues through the course and is either capitalised into the principal or billed as simple interest, depending on the lender. Servicing the interest during the course, where the family can, materially reduces what is finally owed, and it is worth raising at the counter before the loan is taken.