<h1>Education loan interest rules: simple interest accrues through moratorium; subsidies and concessions reduce borrower cost during study and repayment.</h1> The model education loan framework provides unsecured lending with credit guarantee protection for smaller loans, zero margin for eligible amounts, and a moratorium covering course period plus an initial post study year (with further moratoriums for unemployment or incubation). Simple interest accrues from disbursement through moratorium; unpaid interest may be capitalised at repayment start and EMI recalculated. Eligible borrowers receive an interest subsidy during moratorium, and the scheme offers concessions for servicing interest during study, a gender based rate reduction, and an income tax rebate for interest paid.