The EMI starts after 6 months of course completion or when you get job (Whichever is earlier).
During the study period the interest charged is simple interest. But after the completion of course, it becomes compound.
Say you took loan or 2 Lakh and you drew 1 lakh for the admission and the other 1 lakh for 2nd year fee. Rate of interest assume is 10%.
During 1st year interest :- 10,000 (10% of 1L)
During 2nd year interest :- 20,000 (10% of 2L)
But, after completion of course the interest charged becomes compound (i.e interest will be charged on 2.3L).
Also, there is an option of paying the interest during the study period only (in the above case repay 30k before study completion i.e 1250 per month repayment) .The bank gives 1% rebate on the interest rate if anyone opts for this.
During the study period the interest charged is simple interest. But after the completion of course, it becomes compound.
Say you took loan or 2 Lakh and you drew 1 lakh for the admission and the other 1 lakh for 2nd year fee. Rate of interest assume is 10%.
During 1st year interest :- 10,000 (10% of 1L)
During 2nd year interest :- 20,000 (10% of 2L)
But, after completion of course the interest charged becomes compound (i.e interest will be charged on 2.3L).
Also, there is an option of paying the interest during the study period only (in the above case repay 30k before study completion i.e 1250 per month repayment) .The bank gives 1% rebate on the interest rate if anyone opts for this.
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