Whether you take an education loan for abroad studies without collateral or by pledging your assets, it is vital to manage the loan smartly so you can get access to high-quality education without worrying about finances. This can be done by calculating the loan amount, paying on time, planning monthly instalments, and doing part-time while attending college.
Take the Loan Amount Wisely
One of the most important factors for managing an education loan is to take a loan amount that you will be able to repay easily. Your repaying capacity is also a key aspect in deciding whether you will get the loan or not. Make sure you check out the principal amount, interest rate, fees, and other charges to make your repayment plan easier.
Use Their Loan Calculator
Utilise online calculators to compare different EMI options and their impact on the total cost of your loan. Reputed loan providers like Avanse Global offer an online loan calculator. This tool helps you determine and plan the overall cost of your education loan, the potential EMI amount and much more. You can use the calculator to estimate your monthly instalments by working out various combinations of loan tenure and loan amounts.
Plan EMIs
Carefully planning your EMIs is crucial for successful loan repayment. Assess your repayment capacity and determine how much you can comfortably afford to pay each month based on your current and expected income. While higher EMIs may seem daunting, consider a shorter loan tenure, as it can significantly reduce the overall interest paid. Prioritise consistent and on-time payments to maintain a good credit history and avoid late fees or penalties. By carefully planning your EMIs and choosing the repayment option that best suits your financial situation, you can effectively manage your education loan and minimise the financial burden.
Earn While You Are Studying
If you want to effectively manage your loan repayment, you can start part-time jobs or freelancing during your course. Look for jobs that align with your skills so you can make some extra money while gaining good experience. This helps you enhance your resume and improve your job prospects. You can use the grace period to pay the loan amount to lower your EMI smartly.
Along with these tips, you can also avoid defaults on your abroad education loan to manage it efficiently. When you plan and manage your loan, you can dodge any dues or penalties.
