Education Loan

An Education Loan helps students finance higher studies in India or abroad. The repayment begins after the moratorium period (course duration + 6 months to 1 year). The EMI (Equated Monthly Installment) structure ensures easy repayment over a chosen tenure.

Factors Affecting EMI

• Loan Amount: Higher loan = Higher EMI
• Interest Rate: Varies based on bank policies and student profile
• Loan Tenure: Longer tenure reduces EMI but increases total interest
• Moratorium Period: No EMI during the study period, but interest accrues

Tips to Manage Education Loan

✔ Start partial interest payments during the moratorium to reduce burden
✔ Choose a government-subsidized loan for lower interest rates
✔ Compare different banks and NBFCs for better terms
✔ Prepay when possible to save on interest

Conclusion

Education loans provide financial flexibility for studies but should be planned wisely. A balance between EMI affordability and total interest savings ensures smooth repayment!