How Does Education Loan Repayment Work in India

Starting the Process of Loan Repayment

  1. Get a job & inform the Bank
  2. Send your A/c details before the Moratorium Period ends
  3. Set-up an auto debit system
  4. Pay your EMIs on time

Paying the Loan Interest Amount During the Course

  • Some lenders let you pay your loan interest during the course
  • Pay Simple Interest instead of Compound
  • Reduce your financial burden when paying the actual loan amount

Handling EMIs on Low Paying Jobs

  • Request the Bank to increase your loan repayment tenure
  • Try getting your EMis reduced to a suitable amount

Pre-Payment of Loan

  • Lender might not charge you interest amount
  • Make partial to complete payments
  • Shift your focus to creating wealth quickly

Re-Financing your Loan

  • Opportunity to get lower Rate of Interest
  • Saves a large amount in the long run

Failure to Re-pay the Loan

  • Deterioration of Credit Score
  • Landing your next job becomes difficult
  • Might lose your Collateral

Tax Benefits

  • Available under Section 80E
  • If working in India, you can claim deduction for 8 years
  • Deducted amount depends on your income bracket

Visit https://www.hdfcsales.com to learn more.

You can also check more details about Education Loan at https://www.hdfcsales.com/education-loan

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