Repayment of an education loan usually begins after a moratorium period, which includes the course duration plus an additional grace period (typically 6 months to 1 year after course completion). Some lenders offer flexible repayment options, including paying only simple interest during the study period or starting full EMI payments after the moratorium. Students should plan for this phase in advance, as failure to repay can affect both their and the co-applicant’s credit score and financial standing.
Interest rates for education loans vary significantly based on the lender, loan type, and applicant profile. Public banks generally offer lower interest rates with government subsidies for eligible students, while private banks and NBFCs may offer faster processing and higher loan amounts but at steeper rates. It's essential to compare multiple loan options to find the most suitable one in terms of interest rate, repayment tenure, margin money, and processing fees.