Request advice on Education Loan

[sundark87]

Hello Experts,

I have received a sum of 4,40,000Rupees as an Education Loan from Indian Bank in the year of Jan-2005. When i went to the Bank premise on July-2008, it was 5,50,000Rupees. I payed 50,000Rs by that time. In 2011 only I got decent job due to recession. After that I'm regularly paying 10,000/Month without any Gap, when i met the Bank Manager last week, the total amount went to 7,74,000. I'm surprised to hear that, Manager is telling something like the interest rate was 14.25%, recently changed to 12% etc..Moreover he asking to me to complete the entire amount within next 08 months (Atleast 90,000/Month), Otherwise he is ready to give a waive of fof 70,000, so i suppose to pay the 7,00,000 in single term within a month. Seriously i'm in very horrible situation.

Prinicple: Rs4,40,000
Amount repayed: Rs3,00,000
Amount to be paid: Rs7,74,000

Kindly someone advice me on this.

Thanks & Regards,
Dinesh Babu

[sundark87]

Kindly Someone address.

Regards,
Dinesh Babu

Hello Experts,

I have received a sum of 4,40,000Rupees as an Education Loan from Indian Bank in the year of Jan-2005. When i went to the Bank premise on July-2008, it was 5,50,000Rupees. I payed 50,000Rs by that time. In 2011 only I got decent job due to recession. After that I'm regularly paying 10,000/Month without any Gap, when i met the Bank Manager last week, the total amount went to 7,74,000. I'm surprised to hear that, Manager is telling something like the interest rate was 14.25%, recently changed to 12% etc..Moreover he asking to me to complete the entire amount within next 08 months (Atleast 90,000/Month), Otherwise he is ready to give a waive of fof 70,000, so i suppose to pay the 7,00,000 in single term within a month. Seriously i'm in very horrible situation.

Prinicple: Rs4,40,000
Amount repayed: Rs3,00,000
Amount to be paid: Rs7,74,000

Kindly someone advice me on this.

Thanks & Regards,
Dinesh Babu

[sundark87]

Can someone address my Query please or please refer myself effective Website?

[bijumk]

Hi Sundar

Sorry to hear about your situation. But I feel what the Bank Manager says is somewhat right, though I do not know much about the transactions you did.
From the infomation you provided- you taken Rs. 440,000 in 2005, before some 8 years. In compound interest calculation the repayment amount will be around 11,25,000 if the interest rate is 12%. Out of which you paid 300000 in between, So about 800,000 Rs is still payable. What the Bank Manager demands is almost the same figure.

As I said before, I do not know the complete picture. If you feel his demand is not a legitimate one for any reason you have the option to complain at Education Loan Task Force (ELTF). Read more about them at http://www.eltf.in/

Best of luck

Biju

[sundark87]

Thanks a lot Biju for your prompt response. By chance can i get a waive off on portion of Interest to be paid. I'm just curious to know the feasiblity.

[Ricardo33]

Great idea.

[sundark87]

Can Someone Please provide the clarity on Education Loan Interest Subsidy scheme 2014 announced by Finance Minister.
I thought it's a complete Interest Subsidy till Dec 31, 2013. But Branch Manager is totally different on this. Kindly Help.