Next: Credit and debt
Home loans: the 20-year arithmetic
Early EMIs are almost all interest, a longer tenure quietly doubles what the loan costs, and the repo rate reaches straight into your monthly payment.
16 min
beginner
Education loans, eyes open
Who has to pledge collateral, why interest runs quietly all through the moratorium, and how the 80E clock starts years before your first EMI does.
3 lessons · about 15 minutes · written for reading age 13 · last checked 2026-08-11
What the bank can ask for
Below ₹7.5 lakh the model scheme asks for no collateral; above it, the family home enters the conversation — and a parent signs alongside you either way.
5 min
The moratorium is not a pause on interest
No EMI is demanded during the course plus one year, but the interest meter starts at the first disbursement and does not pause for a single day.
5 min
Section 80E, and why this debt follows you
The interest deduction has no rupee cap but an 8-year clock that starts at the first interest payment — and the loan itself never bends to your salary.
5 min
Check yourself
3 questions at the end. Every wrong answer explains itself.
Tools for this
What changed recently
Dated commentary on this topic — a Budget change, a new rule, a scam pattern.
Sources
- Reserve Bank of India — lending regulations and customer guidance — Reserve Bank of India · checked 2026-08-11
- Indian Banks' Association — Model Education Loan Scheme — Indian Banks' Association · checked 2026-08-11
- Income Tax Department — official portal (section 80E) — Income Tax Department · checked 2026-08-11
- Ministry of Education — Vidya Lakshmi and PM-Vidyalaxmi — Ministry of Education, Government of India · checked 2026-08-11