Rishaba das (none)     24 June 2014

# Repayment of education loan under interest subsidy scheme

Sir/madam, I bought education loan up to rs.1,20,000 in 2006. I didnt pay any amount so far except LIC endorsed to bank for that amount. Now we got interest subsidy scheme for that loan amount up to 2013. Statement given by our former finance minister as follows: [[ Honâ€™ble Members will recall that my predecessor, Shri Pranab Mukherjee, had, in the Budget of 2009-10, introduced the Central Scheme for Interest Subsidy (CSIS) in respect of education loans disbursed after 1.4.2009 under which Government took over the burden of interest for the duration of the period of study and a little beyond. However, I have noticed a sense of discrimination among students who had borrowed before 31.3.2009, struggled to pay interest during the period of study, and continued to service the loans afterwards. I think they deserve some relief. I therefore propose a moratorium period for all education loans taken up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014.]] Now, my question is whether i have to pay interest amount for the same principal amount (1,20,000.00) from 01/01/2014?? or the interest relief scheme only apply for the loans availed from 2009 not 2006? I am ready to repay the whole amount now (principal amount+ the interest from 1/1/2014), but bank asking me to pay nearly 2 lakhs and not providing enough details. Moreover he sounded like won't reassign the LIC to me. what to do?

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     25 June 2014

Formula: EMI = ( P × r × (1+r)n ) / ((1+r)n − 1) Total loan repayment = EMI × n Where,    EMI = Equated Monthly Installment    P = Loan Amount    r = Interest rate / 1200    n = Period

Student education loan repayment calculation is made easier with this

Properly addressed by learned advocate Mr. Ramachary, you may better calculate as per the sample given by him.

Parthasarathi Loganathan (Advocate)     27 June 2014

This Excel sheet attached will also help you to calculate EMI for any loans without any manual intervention.