How To Pay Off Education Loan On Property Faster
In 2019, the loan amount disbursed for education rose by 34% from the year 2016. A secured higher education loan are one the ideal financing options for students pursuing studies overseas or from a reputed domestic institute.
Repaying such loans quickly is beneficial since these loans are usually long-term and total interest payable is also high.
Ways to Repay your Education Loan Faster
There are three ways how you can pay off your loan against property for education in India faster. These are:
Choose part-prepayment of your loan
When you choose part-prepayment, you can pay off a part of your debt with an amount significantly higher than your set EMI. This can help you to shorten the tenure of your loan significantly.
Opt for balance transfer facilities
By availing loan balance transfer facilities, you can choose to transfer your outstanding debt amount of an existing education loan to a lender offering lower interest rates. A lower interest rate reduces your cost of loan. Thus, you can repay it quickly by keeping your EMIs same. So before availing a loan, check the education loan details thoroughly to ensure that you can avail this facility in the future.
Foreclosure your loan
When you choose to foreclose your loan against property for education, you can pay off your entire debt with a single payment instead of paying it through the pre-decided monthly instalment option. You can also save on your total interest amount by foreclosing your credit.
With these options, you can repay your higher education loan faster and clear out your outstanding debt easily. However, make sure that your financial institution offers the above-mentioned facilities before applying.