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When does repayment begin?


An education loan generally works on a moratorium basis. This means that the installments are not immediately due after the loan is taken. The installments start getting payable a few months after the completion of education by the student. During the course period, the bank may charge simple interest on the principal outstanding, but this depends on case to case. Some lenders start proper repayment after the end of the course.


Student loans are given out for tenures between 5 to 7 years. The lender may extend this period on case to case basis. Most lenders don鈥檛 charge pre-payment fees in case of part payments during the loan tenure.