Smart Financing: Hdfc Student Loans For Academic Excellence

Lovaii Navlakhi, Director and CEO, International Finance Pvt. Ltd. LLC says it is never wise to enter a laboratory without knowing how to exit. “Aspirations have increased, so people are willing to make an effort, sometimes beyond their means, to pursue higher education, which can change the way of their jobs and their future income,” he said. Make sure you have your money in place. Plan before you decide to study abroad. If you feel that you need to extend your payment, it is worth considering other options or looking for a similar course in India.

It is important to analyze your ability to recover and have a recovery plan. Generally, these types of loans have a repayment period of five to seven years. The best way to pay for your degree is to set aside at least 12-18 months of payments until you complete your degree program. “Then you can save some of the money you earn when you start working hard. This way you will avoid last minute meetings,” said Navlahi.

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In fact, set aside money to get started. “Students often do extra work because they have enough free time after classes. If part of this income is kept regularly, it can be used to pay the EMI in one go,” says Jain.

Once approved, inform your bank that you want to repay the EMI. “Don’t wait to activate your EMI as the pre-EMI interest will be added to your loan amount as soon as the repayment period ends,” says Garg. If you have a lump sum contract, try to pay gradually. Pre-EMI Interest Pre-EMI interest is the simple interest payable on the principal amount on the date of availing the loan. “Banks usually offer an option to fix interest on outstanding EMIs during the course. , a 1% discount will be applied over the term of the loan. If you fail to pay, this amount will be added to the loan amount,” said Garg.

Record changes in interest rates. If the loan is from a bank, make sure it is linked to the lowest cost of borrowing ratio (MCLR) and make the appropriate annual payments. If the MCLR has come down after the RBI rate cut, remember to benefit from the bailout.

Remember that under the Income Tax Act, you can avail tax deduction under Section 80E on interest paid on education loans. So, take your time and repay your loan early. Do the math and find out how it affects the taxes you pay. Garg says if you have some savings, invest in instruments that will earn more than the interest on the loan. You can increase the EMI amount by 5-10% every year as your income increases, reducing your interest burden and your loan repayment period. When doing this, be aware of changes in tax benefits.

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“Good EMI payments will help you improve your credit score. A credit score above 700 will help you get the best credit card and get approved for other loans (like a car or home), says Garg.

Banks and institutions in India generally accept collateral for loans above £7 million, giving them the right to foreclose in the event of default. If your credit becomes a non-performing asset, it can have a very negative impact on your credit score and make it difficult for you to get a loan in the future. If you are fixing, it is better to go to the lender, explain the situation and postpone the loan payment date. Each agency may approach the situation differently.

Please note that if you reschedule your loan, your EMI may also increase. “If your income cannot support your EMI, you may have to reduce your EMI, which means your position will continue to grow. “People have told me how reducing EMIs has increased the value of the loan as interest rates have gone up,” says Jain.

Remember, if you keep quiet, your warranty may be at issue. Education is the best long-term investment, but staying on track and taking precautions is essential to avoid becoming a part of bad debt in the education sector. When planning your education, be realistic and consider all factors before applying

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