Easy Tips to Repay Educational Loans

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Five Tips To Repay Education Loans Easily
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• 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, weve come up
  with 5 tips that will help you easily repay your
  education loan without much hassle.

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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 dont 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.

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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 doesnt 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.

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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.

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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.

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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!

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