For undergrad edloans -
There is Direct EMI option for collateral-free loans
In which scenarios can one get simple interest repayment till course duration or half emi payment till course duration?
But what about with collateral loans? Does every lender provide a moratorium period of course duration with collateral loans?
Hi,
As you are already aware, there are immediate EMI options for collateral-free loans it would be easy for you to understand this -
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If you are referring to undergraduate courses, it is generally not possible to get such loans from any private banks or NBFCs. This scenario is extremely rare and typically only occurs if the parent’s income is very high (in lakhs) and the property pledged is of significant value. However, for Master’s programs, a moratorium with Simple Interest Payment (SI) or Partial Simple Interest (PSI) is often available, depending on the application.
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Regarding the second part of your query, if you take a collateral-based loan for an undergraduate degree, only Public Sector Banks like SBI, UBI, or BOB will offer a full free moratorium. As mentioned above, there is no provision in the majority of cases for a free moratorium, SI payment, or PSI payment with private banks or NBFCs. However, there is a catch with collateral-based loans from public banks as well. The collateral value must be higher than the loan amount required due to margin money requirements, and you must have complete documentation for the collateral being pledged.
We understand that all this information can be complex. Therefore, if you need assistance finding the most suitable lender for your education loan, we can help. Simply check your eligibility with us.