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Education Loan Interview Questions & Answers - Learning Mode

Education Loan Interview Questions & Answers - Learning Mode

An Education Loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. The maximum repayment tenure is upto 15 years post moratorium period. Repayment Moratorium (also called a repayment holiday) is the coursework period + 1 year or 6 months after the student gets a job/starts earning - whichever is earlier. Money borrowed to finance education or school related expenses. Payments are often deferred while in school and for a six-month grace period after graduation. There are a variety of federal and private student loans available.

Try Education Loan Interview Questions & Answers - Exam Mode


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Education Loan Interview Questions & Answers - Learning Mode
Try Education Loan Interview Questions & Answers - Exam Mode
Question: I have an education loan along with my parents. Can education loan default hurt my future credit score or does it hurt my parent?s credit score?

Answer: Any defaults on education loan repayment can directly impact your CIBIL score as well as that of your parents. In case you are hoping to take any new loans or even a credit card in the future, with a low CIBIL score you virtually have absolutely no chance. It is therefore essential to make sure you never let your education loan to go down the NPA route. Source:
Question: My family had taken up an education loan for my college education. Now that I have graduated and started working, can I avail tax benefits on the same while filling my income tax return?

Answer: Education loans do offer a tax benefit under section 80E of the income tax act. One can avail a tax deduction only on the interest paid towards repayment of the education loan and not on the principal amount. A lot of people are under the impression that tax benefits are available for repayment towards the principal amount of the loan as well which is incorrect.

Another thing to note in your case is whether you took up the loan in your name or your parents took up a loan in their name. Si Source:
Question: How long are deductions valid if availed under Section 80E?

Answer: Any education loan taken by self or for children for higher studies will allow you a tax deduction under Section 80E of the IT act. The interest paid for repayment will be exempted from income tax. The deduction is valid for 8 years starting from the day you start repayment for the education loan. Source:
Question: I had taken an education loan for my studies and have recently got a job. What can I do to start repayment of my education loan without hurting my monthly income?

Answer: Every bank or NBFC gives a moratorium period which is the time between you finish your education and get a job. If you are still in your moratorium period, you can start saving but repay your loan once the period gets over. If your moratorium period is already over, check with your bank if they offer an income liked repayment option. Just like your case students passing out of college start with a relatively lower salary so by opting for pay as you grow scheme your EMIs are lower at the start wh Source:
Question: I took an education loan for my son's graduation course. Now he wants to pursue post graduation. Can I seek a second education loan from the bank in my case?

Answer: Yes, you can request your bank for a second education loan. Banks have a provision where they consider you for an education loan in case the same student requires a second loan for a higher degree. The second education loan is granted based on the same conditions as the first, including collateral and third party guarantor requirements but with easier documentation procedures and turnaround time.

Since you already took an education loan for graduation program, you may have fulfilled the c Source:
Question: What is the upper limit to get education loan from HDFC bank without collateral? Does HDFC bank
charge anything for prepayment?

Answer: HDFC Bank offers student loans for students seeking higher education in India and overseas. HDFC bank education loan offer a loan up to Rs. 10 Lakhs with unsecured lending up to Rs. 7.5 Lakhs. So you do not need to provide any collateral for loans up to Rs. 7.5 Lakhs. Yes there are prepayment charges ranging up to 4% of the outstanding balance prepaid, if loan is foreclosed or part prepaid during moratorium period. Source:
Question: I am a female and need education loan for a non regular course in photography. I checked with many banks but they are not keen to lend for a non UGC certified course. What are my options?

Answer: Check with your nearest non banking financial companies or NBFC. Usually Non banking financial companies offer education loans for a wider range of courses including non technical and off beat courses. You may have to pay a slightly higher interest rate and also not get any discounts if being a woman borrower unlike banks which offer discounts to female applicants. Source:
Question: I am 40 year old self employed individual. I had to drop out of college due to financial distress in my youth. Now I want to go back to college and get a degree. Can I get an education loan?

Answer: Educational loans are usually available to any Indian citizen between the age group of 16 to 35 years of age. Education loans are approved only when the person has secured an admission in the designated college or educational institute approved by the bank. So in your case, first you will need to talk to the college about your admission. If the college gives you an admission in their course or program, you can then approach the bank and request them for a lenient view for your case. Source:
Question: Does PNB Saraswati loan come with a processing fee?

Answer: PNB Saraswati by Punjab National Bank offers financial support to meritorious students for pursuing higher education in India. The loan comes with a zero processing fee. The repayment holiday period or the moratorium period for the loan is equal to the course period + 1 year or 6 months after getting job, whichever is earlier. Source:
Question: How to apply for multiple education loans using the new Vidya Lakshmi portal?

Answer: The Vidya Lakshmi portal has been developed under the Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK). All leading banks have integrated their systems with the new portal. You can check educational loan scheme of various banks and apply for multiple schemes using a single form. You will need to login to the Vidya Lakhsmi portal and sign up to create your user account by visiting You can then fill up the common education loan application form and app Source:
Question: Can a small default on education loan impact my CIBIL score?

Answer: To answer your question is one word- Yes. A default on any loan should not be taken lightly as it can affect your credit score and make you susceptible for future loans. No loan default should be considered small irrespective of the amount involved. Make sure you have plans in place to counter any possible loan repayment defaults. It is therefore essential to make sure you never let your education loan to go down the NPA route even if it means controlling your other financial investments for the Source:
Question: I require a loan of Rs. 10 Lakhs for higher education of my daughter. Can i keep my FD as collateral while taking an education loan for my daughter?

Answer: For all loans exceeding Rs 7.5 Lakhs, banks seek a tangible collateral security of suitable value for the loan to be approved. You can keep your bank fixed deposit as a collateral security. Since you haven?t mentioned the amount of fixed deposit you have, let me add that all financial instruments like FD?s mutual funds, insurance policies must cover the full quantum of the loan amount. Source:
Question: What is moratorium period for an education loan?

Answer: One good thing about an education loan is that you do not need to start repayment of the loan from the first day of you finishing your education since it may take a few weeks or a couple of months for you to find a job. Moratorium period is the time period the bank offers the student to find a job and start working before starting the loan repayment. The time period between finishing your education and starting of loan repayment is a good time to save money and build a financial corpus.

T Source:


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