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Easy Tips to Repay Educational Loans

Now repay your educational loans taken for higher studies in India or abroad without much hassle with these five easy tips.<br>

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Easy Tips to Repay Educational Loans

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  1. Five Tips To Repay Education Loans Easily

  2. Education can be expensive, especially if one is aiming to upskill with additional courses abroad or domestically. In such cases, an education loan will provide financial help to fulfil those academic aspirations. This kind of financing allows you achieve your goals of a better future. Although applying for an education loan is easy, paying back requires meticulous planning. And, sailing through the storms of repayment could stymie even the best efforts. So, we’ve come up with 5 tips that will help you easily repay your education loan without much hassle.

  3. Create an extra source of income • It is always good to earn some extra money so you can stay on top of your expenses. You don’t need to aim for a lot. • For instance, you can try to earn by teaching something you know well such as a language or a music instrument. • Earning that extra pocket money can make a huge difference.

  4. Try paying back right away • Even though you are not required to, it is advisable to start making educational loan payments during your grace period. By doing so, you can easily lessen the burden of the accruing interest amount. • That way, additional interest doesn’t keep getting added to your principal balance. Another benefit of this is that your EMIs will be reduced to a large extent. • Most lenders also give some percentage of interest concession to those who begin repaying during the moratorium period.

  5. Target to pay more than your EMI • Your loan tenure will be cut down significantly if you pay more than your EMI instalment calls for each month. • Paying even a small amount extra each month will help you lower your yearly outstanding amount. • Doing this will also assist you in paying off the principal amount and reduce the compound interest on the outstanding. • However, it is recommended to check with your lender if their bank levies any prepayment charges on the extra amount that you pay.

  6. Balance your budget • It is considered to be good practice to manage your expenses so you can maintain your EMIs. Saving up some extra money and putting it towards your education loan will truly help you later. • Make a proper budget by keeping your key expenses under consideration. These may include accommodation, groceries, and transport costs. • Ensure you have sufficient money to cover these essentials every month. • Try searching for cost-effective rentals, using public transport, and keeping a tab on other extra activities to boost your corpus of savings.

  7. Try to refinance • See if you can transfer your loan to another financial institution that offers lower interest rates. • Doing this would definitely reduce the burden of repaying your educational loan interest rate. • If you do not want to transfer your loan, talk to your current bank and see if they will reduce the interest rates. • Do keep in mind these strategies to clear your education loan faster. • They not only help you pay your debt ahead of time but also reduce any stress associated with student debt. All the best!

  8. Know more at https://www.avanse.com/

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