August 01, 2019
Here are 6 tips to pay back your education loan in a short period of time.
1. Pay the additional money you save every month
If you remember, “Little drops make an ocean,” follow that in your life too, especially while paying back the loan. Just pay the very little amount that is left over in your account after spending for the whole month. Even if it is a small amount, it reduces the capital amount and simultaneously leads to a reduction in the interest too.
2. Round up the monthly payment
You can add a little more money to your monthly instalment and round up the amount. Maintain that as your monthly payment. It reduces your capital and interest.
3. Bi-Weekly payment
Instead of paying the full amount in one time per month, you can divide the amount into two and pay it once in two weeks. This way, you will pay 24 instalments a year instead of 12. It will help you to end up the loan a few months earlier than the regular payment.
4. Pay the extra amount you get
Don’t plan any luxury spends on your bonus, hike, tax refund or the money you get from any source other than salary. Just pay it as the extra amount to your loan. It is easy because you don’t have to save this amount from your monthly budget. Just pay the full amount you get by this way for your loan and close your loan quicker.
5. Go Nuclear
If you are single, then let repaying the education loan be your only goal. Here you have to use a minimum amount of your salary for your personal life and pay the rest for your loan. It will help you complete your loan within 2 or 3 years and then you can enjoy your life in your way. Moreover, when you’re just starting work, you may not have other important commitments so that you can put aside more money for your loan.
6. Reduce Eating Out
It may seem like a small amount of money each time you dine outside. Just calculate the amount of money you spend on eating out, you will find it comes to a huge sum. If you are staying away from home, arrange to have a monthly payment for your meals. Else, try cooking. This method will not only be good for your health but for your bank account too!
Nitstone Finserv offers education loan for MS abroad or higher education in India. Eligible candidates can visit Nitstone Finserv to apply for higher education loan in Bangalore. Contact them through mail at contact@nitstone.com or call them at +91 8022268766.