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While getting an education loan is definitely a boon for students aiming to study abroad and so many options for loan available there are a few issues that can occur if you are unable to repay the loan.
From getting your assets seized by the bank to getting your credit scores affected
are the consequences which you will have to endure if you fail to repay your
education loan amount for over a 3-month period.
However, there is an easy solution to this problem which youcan apply even before getting your education loan. And this can be done by planning your loan repayment before hand by being meticulous about it. A wise
repayment is a combination of planning and diligence which needs to be done
soon after the disbursal of loan.
In this article we will discuss with you how you can planyour education loan repayment, so it doesn’t become a burden for you in the
future. So, here are some tips you can use to repay the education loan. These
tips are applicable for both unsecured and secured overseas education loan.
· Analyse Your Financial ConditionDuring Moratorium Period
You must decide weather you want to pay full or partial interest during your
moratorium period. This will help you have a clear picture of their financial
liability and your ability to repay them, this will help you plan and repay in
an organised manner.
· Capitalise on these Features
Margin money, lower interest rate for women, benefit schemes, interest subvention by bans for differently abled or economically weak students are all the benefits
available for the loan. So, if you are eligible for any of these then make sure
to apply for and avail these benefits.
· Take the Loan Amount in Instalments
The interest is calculated on the amount disbursed and not on the amount sanctioned.
So, if you can save the interest amount you should take the loan in instalment
rather than taking it out in one go. Also, you must research which bank is best for education loan for abroad.
· Choose Fixed Interest Rates
It isbest if you go for fixed rate of interest rather than floating rate of
interest, as the interest rates often changes and fluctuates the EMIs. If you
have however, taken a floating rate of interest then you must understand the
fluctuations and plan for increment.
· Transfer Education Loan to New Lender
You alsohave an option to transfer the existing education loan to a new lender offering
the loan at a lower rate of interest. This is especially beneficial for
students who get a job, as it improves your profile. This again, helps in
lowering the EMI you have to pay.
Following these tips will definitely help you repay your loan with ease. If you are considering getting a foreign education loan, then we
highly suggest you do a thorough research and understand all the policies. But
all of this could get a little hectic and it will be much better if you have
help. So, we suggest you contact a study abroad consultants for foreign education loan.