Kuntal (Engineer) 30 December 2013

Education loan

Hi, myself Kuntal and have a query regarding my Education Loan.

I had taken an education loan of Rs. 2,10,000 (@9.5% floating rate, 60 MONTHS) from a nationalised bank and it was required to repay from AUG-2009 but I started repaying from AUG-2010 (As I delayed 1 year and seeing my condition then, branch manager agreed upon to take quarterly instalment of around Rs.18,400 appx. ). Till DEC-2013 I have repaid 2,10,000 (having irregularities of Rs 3000 appx. per quarter i.e almost 13 * 3000=39000 not paid , given that till DEC-2013 it would have been then 2,49,000 repaid ) but now as of bank statement still I have an outstanding of Rs. 1,70,000 causing current EMI to be of Rs. 7000 to give till balance closes.

Please help me to understand how bank is deducting money and whether bank is wrong somewhere? , for your information, the bank currently imposes a rate of 12.25% on education loan.

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2 Replies

T. Kalaiselvan, Advocate (Advocate) 30 December 2013

Your calculation or repayment will be different to that of the bank's actual calculation as per the floating rate of interest. If you are confirmed that you have paid more than the loan amount and its interest portion remain to be paid, it is wrong, the EMI or other arrangement of repayment includes principle and interest amount included on it as per the terms of loan. You can obtain the statement and verify. You can even apply for waiving off interest to a certain extent considering it to be a educational loan to the higher office of the bank.

sanjay kumar (BE/ LLM in Corporate Laws) 06 January 2014

Almost all banks have their own websites now. You can open your account in your bank's website. For that, you will have to visit the bank to know the details and procedure. Once you have opened your account, you can see the complete details of transaction in your loan account. You can then contact the bankif you find any irregularity.