Education Loan Repayment Guide – How to Manage and Pay Your Student Loan
Complete education loan repayment guide for Indian students. Learn about repayment options, moratorium periods, and how to manage EMIs effectively.
Education loans help countless Indian students pursue higher education, but managing repayment requires careful planning. Most education loans in India come with a moratorium period that covers the course duration plus an additional 6 to 12 months, or until the student gets a job, whichever is earlier. During this period, you are not required to pay the principal but may need to pay the simple interest that accrues.
Once the moratorium ends, the loan enters the repayment phase where you pay EMIs comprising both principal and interest. The EMI amount depends on the loan amount, interest rate, and repayment tenure, which typically ranges from 5 to 15 years. Making part-payments during the moratorium period can significantly reduce the total interest burden. Even small payments towards the accrued interest help keep the loan from growing.
The government offers interest subvention schemes for students from economically weaker sections. Under schemes like Vidya Lakshmi and Central Sector Interest Subsidy, interest during the moratorium period is paid by the government for eligible students. Check your eligibility for such schemes as they can save you substantial amounts over the loan tenure.
PayCred facilitates education loan repayment through UPI, debit cards, credit cards, and net banking. Set up automatic monthly payments to avoid missing EMIs, which can negatively impact your credit score. Use the PayCred platform to track your repayment schedule, view outstanding amounts, and earn rewards on every payment. Consistent and timely repayment also helps build a strong credit history for future financial needs.