Upgrad LLM

unable to pay education loan

Respected Sir/ Madam,

                         I had borrowed an educational loan of Rs. 350000, in the year 2010(with out any mortgage). Loan tenure is 7 year. But  till date  I am doing a job where my yearly ctc is 96000 p.a. that means my monthly salary that I get in hand is Rs.7500. But the company sometimes delay to pay this. My monthly installment Rs.6700 p.m. Getting a salary of Rs. 7500 it is next to impossible for me to pay that much interest amount. But the bank manager is asking me to pay arrear interests and giving pressure to my parents. At present I am not getting a good job also.  Under this situation what should I do?  


All banks have been directed by the Government to implement interest subsidy scheme on education loans for unprivileged students who wish to pursue higher education.

The Government had been planning on implementing the interest rate subsidy since quite some time.

The Ministry of Human Resources and Development has generated a letter to the heads of all scheduled commercial banks wherein they have been asked to take appropriate measures in implementing the scheme so that the eligible students get a chance to avail higher education.

The scheme is made effective from academic year 2009-10, the HRD ministry said. A provision of Rs. 500 crore has been made for the scheme by the Government for the year 2010-11.

As per the scheme, student would be exempted from paying interest during the moratorium period.

Banks like Union Bank of India have come up with schemes benefitting students on a larger scale.



Mr. Ariyaan, 

As u have written here, write to the Bank. Ask them to increase the tenure & reduce the EMI. Also ask them for part interest waiver.

If u r confident of getting a better job in future ask the Bank to convert the unpaid interest into Personal Loan. 

A lot many things can be done. But the best is to find a better paying job.

Good Luck




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