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Clear your education loan fast

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"From the year I took a loan to date, the interest rate has gone up by 75 basis points, increasing my EMI burden,"That is why top priority is to clear the dues. Education Loan Interest Calculator rates from banks/institutions are currently in the region of 12-14% p.a. – PowerPoint PPT presentation

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Title: Clear your education loan fast


1
Education Loan Interest Calculator
2
Clear your education loan fast
3
Taking charge of your finances 
  • For others, proper, meticulous planning is the
    only solution. "As part of your repayment
    strategy, prepayment of the loan should be the
    top priority. But, at the same time, the student
    should get into a compulsory savings mode in any
    secured savings instrument so that she
    accumulates a corpus every year to settle the
    loan faster," Assuming the loan is for 7 years
    and interest rate is 12 p.a., the EMI on the
    education loan would be around Rs 17,650. "If the
    individual earns a take home salary of Rs 50,000,
    the balance Rs 32,350 can be used for buying a
    term cover and investments,"
  • "The premium for term insurance with a risk
    cover of RS 1 corer is likely to be Rs 17,000.
    After accounting for annual expenses of Rs
    2,40,000 .. 

4
  Should you prepay? 
  • From the year I took a loan to date, the interest
    rate has gone up by 75 basis points, increasing
    my EMI burden, That is why her top priority is
    to clear the dues. Education Loan Interest
    Calculator rates from banks/institutions are
    currently in the region of 12-14 p.a. 
  • However, the interest paid on an education loan
    is eligible for deduction u/s 80E of the Income
    Tax Act. "In case of pre-payment, this
    benef ..would get reduced. Therefore, students
    will have to calculate the trade-off between the
    net effect of continuing to pay interest on
    education loan less the benefits received u/s
    80E, vis-a-vis investing their money in other
    investments,"
  • This trade-off could determine whether or not to
    prepay the education loan. But if you are paying
    anything more than 50 of the take home salary
    towards the loan, you have to reduce the burden
    at the earliest possible opportunity. You can
    partly prepay the loan from your bonus or
    variable pay linked to your performance. 

5
Here are a few steps that can take you towards
financial stability, even in a tough phase 
Don't wait for the right job  These are not the
best years for working professionals. Students
are struggling to find "suitable" jobs and
working professionals are facing the problem of
shrinking salaries. Undoubtedly, for students,
the initial job would to a great extent lay the
foundation of a career. "However, having a job is
better than not having one, especially when there
is a loan to repay. If the student is good
enough, s/he can always search for a suitable
job.
6
Loan repayment not the only priority 
  • You have to invest some money for lifestyle
    expenses and future goals. "Singles have the
    liberty to live on a shoestring budget. Once
    commitments and the size of the family increase,
    there is always the pressure to take a housing
    loan, car loan, retirement planning, etc. Hence
    make sure you save and invest at least 20 of
    your salary for future goals.
  • Also, you should build a corpus to partly prepay
    the loan, especially if you have taken a
    long-tenure loan, say for 5 or 7 years. 
  • Source http//economictimes.indiatimes.com/perso
    nal-finance/loan-centre/personal-loans/analysis/cl
    ear-your-education-loan-fast/articleshow/13422873.
    cms

7
https//www.facebook.com/AvanseEducationLoan
https//www.linkedin.com/company/avanse-financial-
services
https//twitter.com/avanseeduloan
https//plus.google.com/AvanseFinancialServicesLt
dMumbai
https//www.youtube.com/channel/UCcsuUx1EH1C08XmX2
embpug
8
  • Read more on Education Loan Calculator
    http//www.avanse.com/calculators/emi-calculator/

Thank You..!!!
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