The Education Loan Checklist Every Indian Family Should Read First
· 6 min read
Education loans in India fall into two broad groups: loans up to Rs 7.5 lakh, which usually need no collateral, and larger loans, which usually do. Knowing which group you fall into changes which lenders are worth approaching.
The moratorium period — course duration plus six to twelve months — is when you do not repay principal. Interest may still accrue. Ask whether simple interest during the moratorium can be serviced monthly, because doing so can reduce total repayment substantially.
Check whether you qualify for a central interest subsidy scheme. Income-linked subsidies can cover interest during the moratorium entirely for eligible families.
Compare processing time, not just rate. A public bank offering a slightly lower rate but taking eight weeks may cost you an admission deadline.
Borrow the smallest amount that gets the job done. Apply for scholarships first; every rupee you win is a rupee you never repay with interest.
Put this into practice
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