Education loan repayment time

I am really surprised for questions being asked in this forum, especially people who have taken Education Loan. Education Loan not any other loan. Why you try to come to a Lawyers' forum with your question. Why do not you go to the Bank which helped you in your Education by giving a loan?

Please read the sanction letter and be guided accordingly.  You have signed an agreement with the Bank for repaying the loan in a certain installments starting after a certain period. This must be quite clear before loan is taken. If the repayment holiday is extended, please ensure that you are informed in writing. Do not presume seeing some news item. Please do contact your Bank branch which has given the loan and enquire about the dates for repayment and the interest calculation pattern ie. simple or compound methods of calculation.

Lawyer should be consulted incase of any dispute which could not be resolved with normal discussion between parties.

well said by expert..

If you have the capacity, it is always proper to pay the amount at the earliest as per schedule.  Without your knowledge, interest eats away your income during long term.  Please understand that education loan is a welfare measure, and once the scheme's performance is satisfactory through prompt repayment, funds with Bank can be recycled.  Bank has charged you very nominal rate, and it is not proper to avail the benefit for long term because the rate of interest is cheap.

it is not revealed from which Bank the Educational Loan was taken.  Normally, till the repayment holiday is completed ie. courese period plus 6 months, Educational Loan incurs interest at simple rate and from the date of repayment, the interest is calculated at compound rate.  Therefore, it is always advisable to repay the loan quickest.

When at the time of need, you or your parent would have ran from pillar to post to somehow get the loan sanctioned but when it comes for repayment you look for maximum number of options to delay or avoid repaying it, why? dont you think that your fellow brothers will be affected because of some people like you?