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Suppose a student has taken an educational loan of Rs.4,00,000/- frm a reputed bank in India @ 11.25%,then.... |
Suppose a student has taken an educational loan of Rs.4,00,000/- frm a reputed bank in India @ 11.25%.So,what I want to ask is that - after he/she completes his course(suppose it's a 4 yr engg. course),what's the precise amount he/she needs to pay back to the bank? Can anyone who has a sound knowledge about all these banking procedures enlighten me on this?? This is India we are talking about, so there are some strange and weird practices around the world which may be different and totally off from what we do here in the US. Here the way it works is that amount you mentioned, whatever that is, is called the principal amount, or the amount actually advanced to you by the lender. With student loans it is common practice (here anyway, don't know about India because you could have a really warped and twisted process over there, being Third World and all) for the interest to start to accrue after the student has completed his course of study. The interest would be at a set annual rate and would compound daily, monthly or whatever, and added to the principal amount. the student would begin making payments that would include principal and interest and continue to do so until the principal amount is paid in full. That's the way it works here in the US; in India I suppose anything goes and could be totally different and senseless by our standards. (Here we do not have buses with 50 people clinging to the top and sides as it drives around on city streets. Source(s): From the Kokopelli "How to Get Along in Life Handbook" This answer is a finely tuned, precision instrument machined to tolerances of +/- .001" and was carefully handcrafted from the highest quality materials. No animals or plants were harmed in the answering of this question. Any similarity with any person, living or dead, is purely coincidental and unintended. Kokopelli say wipe buffalo dung off moccasins before entering hogan. Ya certainly and also after complitinge your course you will get some grace period also if you need any information mail manju_agar1@yahoo.co.in I don't have a sound knowledge about all this. 11.25% seems very high to me. I wouldn't take a loan without knowing a lot about the pay back rules. It's necessary to know these important numbers and facts before you sign or commit to anything. Generally banks add some extra taxes, you have to ask about it. It's not only the interest, 11.25% There are all kinds of possible taxes such as administration tax, risk tax, (annual or monthly). Taxes are constant or variable depending of the amount of the loan. The amount to be paid up after 1 year is 1,1125 times more. In 4 years it will be 1,1125^4 times more 1.1125^4 = 1.5318 times more. So (s)he'll have to pay Rs.4,00,000 * 1.5318 = Rs.6,12,720 Don't forget about the additional taxes. Warning: 11.25% could change in 4 years try this site if your student loan feels like a huge burden.. they'll help you lower your payments. http://www.loantaker.info/student/... |
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