If you do not pay the loan on time then the credit score value declines, and you will have future problem also the amount gets piled up until you do not pay it and close it.
The bank will give you 2 more months, if the repayment is made with the late fee, no actions are taken against the candidate and the guarantor. Otherwise the loan guarantor will be contacted and the actions are taken accordingly.
The major problem in receiving an education loan, they want to know if the candidates will be placed immediately. This is the real problem faced by many of the candidates, because, a job is not assured immediately after completion of the study.
If the principal amount is less than 4 lacs you will not have to give any collateral security or need any guarantee. So, the recovery will be initiated as you will have hoodlumsat your place every morning. Added, you will be black listed and your name will now appear in the CIBIL list of defaulter. Once that happens you can comfortably make sure that you will be not trusted foe a loan in the foreseeable future unless you have a very strong collateral property against the loan………..