Education loans to get cheaper

Education loans will become cheaper with the government planning to pay the interest for the duration of the academic programme, for which the student has taken the loan. “Between joining a course and its completion is the moratorium period, during which the student will not have to pay the interest...this is a proposal that the government is considering. This would significantly bring down their EMIs,” said a senior banker familiar with the discussions. The proposed interest rate subsidy from the government will also benefit banks which have been complaining of defaults and non-payments on education loans. It is estimated that around 2-3% of education loans have turned sticky. So far public sector banks have given Rs 32,000-crore education loans to 16,98,601 students. Typically, a student starts paying his equated monthly instalment (EMI) a year after completing his studies. One year moratorium is aimed at giving students time to search a job.

for further: economictimes.indiatimes.com/personal-finance/loan-centre/personal-loans/personal-loans-news/Education-loans-to-get-cheaper-as-govt-offers-subsidise-interest/articleshow/5806458.cms