Best ways to clear your educational loan

1. Best ways to clear your educational loan

2. With the rising costs of education, you’ll find most students taking education loans to complete their further studies. Since there are so many financial institutions that provide education loans to students, it is very easy to get a loan. • But getting a loan is not such a big problem as clearing it for some borrowers. What usually happens is that once you get your loan approved, you forget about it for the time being. You only start thinking about the loan once you complete your graduation, and this might be too late. • You obviously do not want the educational loan to become a burden in the future, so make sure to keep the following ways in mind to clear your educational loan with ease:

3. Follow a budget right from the start The reason why so many borrowers struggle with clearing their loans is that they do not start planning right from the start. They think about the loan only after they finish graduation, and this might be too late and could cause unnecessary delays in paying the monthly installments. Ideally, they should start saving immediately after they get their loan approved. Every month they should save funds keeping in mind the EMIs of their loan. Doing this would make clearing their educational loan much easier. • Start paying EMIs before moratorium period ends A moratorium period is where you do not have to start repaying your educational loan. This period gives you additional time to save up some funds for the monthly installments. A moratorium period usually lasts for about 1 year after the student completes graduation or 6 months after he gets employed. But it is beneficial if you start repaying your loan before the moratorium period ends, as you could save a lot of money. The interest rates on each installment keep getting added even during the moratorium period, so by starting the repayment early you are actually saving money by avoiding the interest to get added up.

4. Start paying EMIs before moratorium period ends A moratorium period is where you do not have to start repaying your educational loan. This period gives you additional time to save up some funds for the monthly installments. A moratorium period usually lasts for about 1 year after the student completes graduation or 6 months after he gets employed. But it is beneficial if you start repaying your loan before the moratorium period ends, as you could save a lot of money. The interest rates on each installment keep getting added even during the moratorium period, so by starting the repayment early you are actually saving money by avoiding the interest to get added up. • Try paying bigger amounts with each installment This is a great way to clear your study loan faster. If you are looking to clear your loan as soon as possible, you should try and start paying bigger amounts with each installment. Sure, you would have to start following a tight budget, but this could be very beneficial for you. By paying more, you end up cutting down on the number of installments towards the loan. Doing this would not only clear your loan faster but also help in saving interest as you clear the loan in fewer installments.

5. Set up auto-pay for the EMIs A lot of borrowers miss out on their EMIs simply because they did not keep a track of the date. This easily avoidable reason should not be the cause of your credit score getting negatively affected. Simply setting up auto-pay for your EMIs would ensure that you never miss out on a payment ever! We hope this article has been helpful, all the best!

6. We hope this article was helpful to you.

7. You can find more interesting things on these sites mentioned below :- Website: https://www.auxilo.com/education-loan/studying-in-india-loan Facebook: https://www.facebook.com/AuxiloFinserve/ Twitter: https://twitter.com/AuxiloFinserve Youtube: https://www.youtube.com/channel/UClc_BEIN262Fm5eY_8sPA5w?view_as=subscriber Instagram: https://www.instagram.com/auxilofinserve/