When to do the return payment of Education Loans
Just like the ordinary loans, there is no need to pay the interest from the next month onwards. It can be paid even after completion of the course. Most of the banks are saying that the repayment is to be paid after one year or after 6 months after getting the job. During the time of the course, the normal interest is calculated and is added to the actual amount. From then onwards, the compound interest is to be paid in the form of EMI. The banks are allowing paying this amount in 8 stages.
Tax concessions on Education Loans
There is tax exemption for the education loans under the section 80E. This exemption is valid for 8 years from the time when the payment of the amount is started. Â There will be no exemptions on the actual amount that is to be paid. For the recognized courses that to from the recognized universities these facilities and exemptions are offered. The section 80E is same even for the newly introduced direct tax code.