With the increasing cost of higher education, both in India and abroad, more students are looking to avail advances to cover the expenses in due course of their higher education. However, while availing an education loan against property has become easy, it is also crucial for borrowers to learn how to pay their EMI to avoid the risk of defaults.
For individuals wondering how to pay their EMI on education loan, following are two methods to do so –
- EMI payment through cheques- Drawing cheques every month to make EMI payments is the most common method availed by borrowers for loan repayment. You can write cheques and submit them to your lender each month before the due date of your EMI payment. You can also make EMI payments by withdrawing cash from your savings account and deposit the requisite amount to repay your education loan for abroad studies to your lender’s account.
- Through Electronic Clearance Service (ECS)- ECS is an online facility for automatic EMI payments of loan against property. Through ECS, the EMI amount is debited from the borrower’s account each month before the due date and transferred to the lender’s account.
However, individuals availing of this facility will have to fill out a form to do so and will also be imposed with a small charge for the service.
Apart from these two methods of EMI payment for an education loan, individuals can also check with their financial institution for other ways to repay their advance. Thus, individuals who have availed the advance by satisfying necessary education loan against property eligibility can repay their loan easily by using the methods mentioned above.