Banks offer flexible repayment tenures to pay off the education loan. But, paying it faster can reduce the interest expense. Check out 5 tips on how to do so.
IDFC FIRST Bank
Start early
Start repaying the loan during the moratorium period itself to reduce the outstanding debt. As the debt is reduced, repayments can be faster.
IDFC FIRST Bank
Step up EMIs
As you get a job and start earning, increase the EMIs at regular intervals, preferably every year. This would help in repaying the loan quickly.
IDFC FIRST Bank
Prepay
If you have surplus funds at your disposal or if any of your investments have matured, prepay the loan partially and reduce the outstanding principal.
IDFC FIRST Bank
Look for additional sources of income
Get a side job or create a source of passive income. This would help in stepping up the EMIs for smarter repayments.
IDFC FIRST Bank
Refinance
Look for lenders offering lower interest rates on the education loan and refinance the loan. Get lower interest rates for more affordable repayments.
IDFC FIRST Bank
Use these tips for smart repayments. For collateral-free loans up to Rs.50 lakhs, choose IDFC FIRST Bank and enjoy attractive interest rates.