The Moratorium "Trap" Explained
Most students believe that during the course duration (the moratorium period), the loan is "frozen" and no interest is charged. This is completely false.
Banks charge Simple Interest on the disbursed amount every single month during your studies. When your course ends, this entire accumulated interest is added to your principal amount. Your EMI is then calculated on this massive new principal.
Financial Strategy: Many banks offer a 1% interest rate discount if you agree to pay ONLY the simple interest component during your study period instead of waiting until the course ends. If your parents can afford this small monthly payment, it will save you lakhs in the long run.