Have you taken an education loan to fulfill your higher study plans? Indeed, this kind of financing is a great way to get the required funding without dipping into your family’s savings or selling a valuable asset. However, one aspect of the education loans for students that a lot of applicants tend to worry about a lot is the repayment. Many applicants are often unaware as to how to approach the repayment plan or how to go ahead with the plan if they have made it. To help these students out, we take a look at 5 ways you can repay the loan faster. Let’s get started.
1. Use an EMI calculator
An EMI calculator is an online tool that provides you with an estimation of the EMI after you have added three variables: the principal loan amount, the loan tenure, and the rate of interest. You can modify these variables as per the EMI you are looking for. Since you have an idea of what amount incurs how much EMI, you will be able to select the loan amount more correctly. The EMI estimation also helps you structure your repayment plan accordingly.
2. Take advantage of the moratorium period
The moratorium period, also referred to as the holiday period, is the duration that begins after the completion of the studies of the applicant. There is no need to pay the EMIs during this period which continues for around 6 months after the applicant has gained a job. The educational loans interest rate on your for students keeps getting accumulated during this period. Not many may know this but the student can pay during the moratorium period if they wish to. Repaying the loan during the moratorium period reduces the overall amount that you have to pay as the tenure is reduced.
3. Consider repaying during your studies
Whether you have taken education loans for students to study in India or abroad, there are plenty of employment opportunities for students as well. One can take part-time employment in such a manner that their academic performance is not affected. You can use the money gained from these jobs to repay the loan amount. If the lender allows repayment during your studies, then you can go ahead with the payments. If the lender is not willing, you can still save up the money and make a large part payment afterwards.
4. Consider taking another loan to refinance
Taking another loan might not seem like the most appealing choice; however, if done smartly, a refinancing loan can help you greatly. They can help reduce the overall amount you are spending on the loan.
5. Be self-disciplined about repaying the loan
The most important quality you will have to practice to repay the education loans for students is discipline. Whether you are a student of an educational institute or an employee of an organization, it is important to prioritize the repayment of your loan. Try saving up wherever you can. If you have received a bonus at work or something similar, see if it is possible to move it to your loan repayment account.
It is also very important that you choose a lender that offers flexible repayment options for education loans for students. Also, note that the terms and conditions of various lenders may differ. We hope this article has been informative and helpful. Thank you for reading.