“I am sorry. The rate of interest has been increased, so you have to pay a higher EMI”, the disinterested branch manager of the NBFC told a student who had taken an education loan in Fall 2017. This was the third time in the last two years that the NBFCs had increased the rate of interest on education loans, totaling up to a hike of 3% (12% became 15% in a matter of 2 years). The above is a common scenario for many students who opt for an education loan with a floating rate of interest, especially from NBFCs. If you are a student who wishes to take an education loan but is unaware of how the rate of interest changes, then you should definitely read this blog before making any decision.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/sbi-fixed-interest-rate-abroad-education-loan