Concessions on Interest Paid on Education Loan
Most banks give concession on interest paid on education loan by a women or a student pursuing professional course – Engineering/Medical or Management. Banks also grant concession for moratorium period (temporary prohibition of an activity). The following is the Interest Concession that the bank offers on Interest paid on education loan.
Women Beneficiaries: 0.5% p.a. for limits upto Rs.50,000 and 1.00 % p.a. for limits upto Rs. 1,00,000
Professional courses: 0.5% p.a. and if women: 1% p.a.
Moratorium period: 1% p.a.
*where repayment holiday is specified for interest/repayment under the scheme (concession available for moratorium period only). Simple interest during the repayment holiday/moratorium period. Penal interest @2% for loans above Rs.4 lakh for the overdue amount and overdue period.