Kalvimalar

S Venkatesh from Chinna Kotakuppam, Villupuram, is curious about the repercussions of not repaying his education loan and how it might impact his future.

The consequences extend beyond the borrower; the guarantor will also bear the brunt. Notices will be issued continuously, and if there's no response, the borrower risks being declared a defaulter.

This information is communicated to credit score systems, restricting the individual from obtaining another loan for many years into the future. The same applies to the guarantor.

Eventually, the case may progress to a debt collection tribunal. Subsequently, the bank can obtain recovery orders, initiating attempts to collect the outstanding amount from the defaulter. These actions collectively tarnish the borrower's financial standing and future prospects.

Take into consideration that repaying the education loan not only secures the borrower's future but also enables four more needy students to benefit from similar financial assistance. It encourages banks to continue providing education loans. By defaulting on student loans, individuals jeopardize not only their own future but also the educational opportunities for other deserving students.