How Does Education Loan Repayment Work in India

Starting the Process of Loan Repayment

  1. Get a job & inform the Bank
  2. Send your A/c details before the Moratorium Period ends
  3. Set-up an auto debit system
  4. Pay your EMIs on time

Paying the Loan Interest Amount During the Course

  • Some lenders let you pay your loan interest during the course
  • Pay Simple Interest instead of Compound
  • Reduce your financial burden when paying the actual loan amount

Handling EMIs on Low Paying Jobs

  • Request the Bank to increase your loan repayment tenure
  • Try getting your EMis reduced to a suitable amount

Pre-Payment of Loan

  • Lender might not charge you interest amount
  • Make partial to complete payments
  • Shift your focus to creating wealth quickly

Re-Financing your Loan

  • Opportunity to get lower Rate of Interest
  • Saves a large amount in the long run

Failure to Re-pay the Loan

  • Deterioration of Credit Score
  • Landing your next job becomes difficult
  • Might lose your Collateral

Tax Benefits

  • Available under Section 80E
  • If working in India, you can claim deduction for 8 years
  • Deducted amount depends on your income bracket

Visit to learn more.

You can also check more details about Education Loan at

If you have any queries about this video or any of our products, you can let us know in the comments below or contact us through our website.
Music: Uplifting Corporate Background by Homulus Tunes
Video Link:

#educationloan #education #hdfcsales