It is estimated that the student loan debt in India can amount to anywhere around 67 crores as of 2020. Every year, thousands of students rely on an education loan to pay for their exorbitant college and university fees. While these loans have been a source of great help, especially for underprivileged students, paying them off can be burdensome for most folks.
As a leading loan provider in Pune, here at Findestination we know exactly how pressurizing the prospect of clearing off student debt can get. This is perhaps why we want to share the following tips with you.
So without much further ado, let’s get started.
1. Be Wise when Opting for your Repayment Plan
A lending bank will provide you with multiple methods to repay the borrowed sum. Carefully vet each repayment option and choose one that best suits your capability and budget. Pay heed to your moratorium period. This will help you know exactly how much time you have until you get your very first job and your first EMI kick-start.
2. Go for a shorter tenure
You may end up paying higher EMIs by opting for shorter tenures. However, this way you are also saving a lot of money in interest paid towards your borrowed education loan. That said, we are in no way telling you to opt for a plan with unaffordable high EMIs. Just choose a shorter tenure that results in EMI payments that you can easily manage.
3. Automatic Payments
Forgetting to pay EMIs on the due date will affect your creditworthiness and affect your ability to seek loans in the future. Setting up automatic payments on a bank account basically means that the due EMI amount will be automatically paid to the lender on the set date and time. With automatic payments, you can rest easy knowing you are not missing out on EMI payments
4. Make Extra Payments Whenever Possible
There may come a time during your employment when you are paid extra… perhaps a bonus. Use this occasion to make extra payments. This is a great way to manage the burden that comes with student loans. You may also be able to clear off your debt much sooner by paying extra every now and then.
5. Clear Interest During The Moratorium
The moratorium is a period of 6 months or a year that begins once you’ve started your studies. Remember that although your payments do not begin until the moratorium is over, your interest amount starts piling up the moment you take out the loan. So it would be wise to start clearing the interest amount while your course is still in progress.
Needless to say, if you are looking for an education loan in Pune, then paying heed to the above tips could help you manage your debt more efficiently and even make you capable of clearing the debt off sooner without breaking a sweat.
For more on student debt, feel free to call us at Findestination.