Private College Student Loan

Does Bank interest rate for education loan in India change?

Hello, 2 years back I took an education loan of 6 lakhs at a rate of 10.5% from Oriental bank of commerce, India Now when I need to repay it they say that it needs to be repayed at 12.5% as the interest rate for education loan has went up. Is this possible that bank can change interest rate at their will, whereas they promised interest at 10.5% at start. Regards

Public Comments

1. Checkup now with the Bank-actually the interest rates on Education loans have come down-three more important points are, 1. The Bank has to charge interest till actual repayment schedule commences,only on SIMPLE interest basis, without compounding 2.If such interests are serviced by your parents or yourself, you are eligible for some rebate in interest rate, overall till the loan is closed. 3.If your parents income levels are below certain point, the entire interest is met by government. Ask your parents to have a thorough check up on all these with the Bank