What happens if a student Cannot pay education loan?

If you are unable to make repayment on your education loan, then you will receive notices and warnings from the lender. If you fail to comply with the same, then the lender is legally entitled to the assets you mortgaged. Your property or asset can be auctioned or used by the lender.

Is education loan affect CIBIL score?

Does education loan affect CIBIL? Yes, your education loan can have a great effect on your CIBIL score as they are just like any loan and have to be repaid to keep up a good CIBIL score. Also, just like other loans, education loan is also reported to CIBIL and gets reflected on your credit report.

How is student loan paid back?

The loan is repaid by the student. Generally, the repayment starts when the course is completed. During the course period, the bank charges simple interest rate on the loan. The payment of simple interest during the course period lessens the equated monthly instalment (EMI) burden on the student for future repayments.

How to reduce the EMI of your education loan?

Students can adjust their EMI amount (increase it) to pay less interest and repay the education loan earlier than planned. Or they can extend the study loan tenure (duration) to fit the EMIs into their affordable limits.

Are you eligible for an educational loan?

But not everyone is eligible for an educational loan. Banks set certain criteria for applicants to meet before they loan money for any purpose. When banks receive an educational loan application, the main factors they would consider are:

How can I Manage my Further studies and my loan?

Here are few tips to help you manage your further studies and your loan and help you pay it off with ease. Choosing your course – Taking a loan to fund your education shouldn’t be done just to go abroad or just to study something. Choose a course that you are interested in and that you would be dedicated to turn it into a career.

What are the considerations for student loan repayment?

Student loan repayment involves three major considerations namely: 1 Education loan repayment calculations: comparison of amount of each EMI vs. no of EMIs to be paid 2 Education loan repayment modes: how, when and how much loan amount to repay 3 Student loan management: tips and hacks to maximize the loan scheme features