Education can be very expensive specially for those who are interested in pursuing in reputed institution or college. Demand for education loan is increasing with years as it is getting very difficult to afford for college fees and course.
Education Loan aims to provide financial support for pursuing higher professional or technical education in India and abroad.
An education loan can be availed from banks as well as financial institutions. Interest rates vary from 12-16 per cent depending on the banks and your credit score.
Students who have availed loan to pursue their education should be carefully about repayment of the loan on time or before the due.
Here are 7 tips to clear education loan fast:
1) Don't wait for the right job
Many students reject job offers in a hope to get a better job. It is always suggested that having a job is better than not having anything. However, it is better to go for relevant field where there is a growth. If you start paying your loan early, there will be less burden.
2) Understand your loans
Understanding your loan and the procedure will help you in planning your finance and manage it in a better way. Get to know the loan amount, interest rate, principle amount, how much is the moratorium period.
3) Moratorium period
It is the time given by the bank for the student to find a job and start working before starting the loan. This is the best time to build corpus. There are some banks which offer a lower interest rate if you arrange to pay the interest portion of the loan during the moratorium period.
4) Part time job
It is better to start saving when you are studying as it will not be a burden during the end. Students who are looking for part time job can save more and ensure that education loan is cleared early.
5) Bonus Amount
Once you start working, there will be hike or bonus each year. This amount can be used to repay the loan amount every year. If you stick to this plan, you will end up clearing education loan early.
6) Loan from employer
There are few companies which offer loan to employees on lower interest rates. If you are in a hurry to close the loan account one can avail loan from the employer and repay the amount. In such cases, the company will deduct the amount regularly from your salary.