What happens if education loan is not paid in India
Do you know what happens if education loan is not paid in India? If you don’t then you are going to be surprise when I say that education loan is the most important form of a loan. Education loan is one of the most popular form of loans in India and people who want to complete their higher education can easily avail this type of education loan in India. However education loan in India comes with huge interest rate because there is a high risk for the lender when it comes to education loan repayment. In fact, education loan in India has some of the highest education loan interest rates.
The main reason why education loan in India has high interest rate is because in India, there are large number of non-resident Indians or immigrates that are taking education loan from banks or other financial institutions in India. And majority of them are not able to pay off their education loan amount on time. This makes education loan repayment very tough on their part and it also creates a lot of problem for the borrower as well. And due to this reason, the government imposed a limit of 50% against the amount of loan which a person could take as per his requirements and no individual is allowed to take any education loan amount more than this limit.
So if you want to avoid getting into trouble with education loan in India, you should do some efforts which will help you in avoiding problems when you want to pay back your education loan in India. Education loan interest rate is high and if you want to get away from this burden, you should find out how to make your payments on time. There are certain steps that you need to follow so that you can get rid of this situation. If you have hired a company for the purpose of paying your education loan in India, you should contact them with your payment schedule. Usually, the companies give a time period of six months or more for the borrower to pay off his loan amount.
When the repayment starts on your education loan in India, the lender will charge you a high interest rate on the amount which you have taken. This again becomes a burden for you may end up having to repay even more than what you took as a loan. You should try and find out how much education loan interest rate your lender charges you and then try to reduce the amount which you are required to pay each month.
Another reason for which you are not supposed to pay your education loan in India is the case of you going for higher education. The higher education loan debt amount is considered unsecured in the eyes of the lenders and hence they will not grant you loans unless you give them some security. Hence before you go for higher education, you must be sure about the reason for which you are taking higher education. If it is for reasons other than education, then the case of you not repaying your education loan in India would not be considered.
One of the best ways of avoiding the case of not repaying your education loan in India is to ensure that you make all your payments on time. Make a budget and ensure that all your expenses are covered. This means that you do not have to waste much on your education loan repayment. Try and pay the loan amount on time so that you do not have to worry about the repayment. In case, you are not able to make your repayment on time, then you may consider looking for other alternatives to get your loan repayment done.
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