Home Education Education Loa...

Education Loan Repayment: Here’s What You Can Do

Taking an education loan today is easier than it was a few years ago

0
//
Education loans
Education loan is a service that has helped many students over the years to achieve their academic pursuits. Pixabay

Education loan is a service that has helped many students over the years to achieve their academic pursuits. Many times, financial setbacks keep them from achieving their desired goals. For students, who have a fair knowledge of banking norms and have set ambitions for attaining good education, can apply for student loans. If you are also thinking of getting an education loan for higher studies, prefer borrowing it from a reputable bank. While applying for the loan, dig deeper to know about loan repayment, which is an essential part of the process to understand how to repay it back. You can also use an EMI calculator to get this information beforehand.

Taking an education loan today is easier than it was a few years ago. It is primarily due to the government’s increased drive to popularize these loans and increase competition among lenders following the entry into the space of Non-Banking Finance Companies. 

Please follow NewsGram on Twitter to get updates on the latest news

When you take out a student loan, you should carry out due diligence before filing. As you will have to pay back the amount taken, the calculations you do will have repayment as its major part. An EMI calculator is a helpful tool in such cases.

Education loans
Some banks provide this facility where students can pay a part of their education loan as a consolidated payment and remaining amount in the form of an EMI. Shutterstock

The repayment process for education loans in India varies depending upon the policies of the lender. These loans also work the same way as other loans where you have to pay monthly instalments against the principal amount with a rate of interest. Higher EMI options generally have lower loan repayment tenures, which leads to quick settlements.

Here are a few important things you must know about an education loan:

Moratorium Period

Moratorium period is a gap given to the borrower or a student for the commencement of their loan repayment process. It is applicable only for education loans as students take them are still studying. For example, if a student opts for an education loan, he does not have to start repaying it right away, but after the moratorium period is over. The EMI repayment begins strictly as soon as this period gets over. The moratorium period is usually one year for most banks and varies accordingly as per policies.

Please follow NewsGram on Facebook to get updates on the latest news

Education Loan EMI

Equated Monthly Instalment (EMI) is the payment you will have to make each month against the principal amount taken from the bank with an interest rate. It is essential while calculating the loan amount. If you want to know the EMI before going to any bank or financial institution, you can use an online EMI calculator. Make sure you borrow the education loan from renowned banks like Axis Bank that ensure quick and easy loan application and disbursal process. 

Education loans
The repayment process for education loans in India varies depending upon the policies of the lender. Pixabay

Student Loan Partial Payment

Some banks provide this facility where students can pay a part of their loan as a consolidated payment and remaining amount in the form of an EMI. Although the term can be fixed as per bank norms and your repayment capacity, it is essential to know each detail beforehand. EMI calculators are a free tool available online, which offers you to make various combinations for getting the desired monthly repayment amount. It gives you a decent idea of your required principal amount, loan tenure and interest rate for the same. 

Please follow NewsGram on Instagram to get updates on the latest news

Prepayment

There are a few instances where students manage to secure a full amount for loan repayment before its tenure. The prepayment option is not available during the moratorium period. You can check in with your bank from where you have taken the loan to know more about the prepayment option and how you can utilize it.

Also Read- Is France Going to Witness Its Deepest Economic Downturn? Find it Out Here

Loan Extension

Based on affordability, you can also choose to extend the loan tenure to lessen the monthly instalments. Calculate it online on an EMI calculator to have an idea before you take the case forward with your bank. Note here that if you increase the EMI amount, loan tenure will grow, thereby increasing the overall principal amount. 

Therefore, it is advisable to clear the due loan amount on time to avoid overpaying.

[ Disclaimer: The pictures used in the article are supplied by the author, NewsGram has no intention of infringing copyrights. ]

Next Story

UAE-Based Indians expatriates Start Free Online Coaching For Kids

2 Dubai based best friends have started the '#PandemicCamp' to provide free online education for CBSE students

0
online
2 UAE based expats have started taking free online classes of children who can't afford private tutors during the pandemic. Pixabay

Two United Arab Emirates (UAE)-based Indian expats started free online coaching for children who have dropped out of after-school private tuition because of the coronavirus pandemic, Coronavirus disease (COVID-19) news reported.

Simran Kanal and Mehak Lalchandani, who have been best-friends from their Dubai school days, were running their newly-founded ‘#PandemicCamp’ to provide free online coaching for CBSE students whose parents can no longer afford private tutors, reports Gulf News.

Pandemic Camp is offering free Zoom lessons in English, Maths and Hindi for grades one to five, taught by the two former CBSE students Kanal and Lalchandani, both 2014 alumni of The Millennium School in Dubai.

“We’re both very compassionate, both as students and as teachers. We came across parents who have had to withdraw their children from private tuition, so this camp is a way we wanted to give back to society,” said Kanal, a freelance journalist and writer who works for an online marketplace platform.

man- Online
Pandemic Camp is offering free Zoom lessons in English, Maths and Hindi for grades one to five. (Representative Image). Pixabay

Lalchandani, a finance degree holder, said: “Since we’re very familiar with the CBSE curriculum, that is why we chose CBSE and are catering to primary school grades.”

Also Read: Risk of Multiple Sclerosis High in Urbanites due to Air Pollution

She said the sudden switch to distance learning has not been easy for students, teachers and parents.

“In a classroom, you have 30 students and you have to personally go to a student and see what they’re doing in their book. But when you have 30 students online, then it’s very difficult for that one-on-one help,” Gulf news quoted Lalchandani as saying.

Kanal said compared to her school days, students today in grade four or five have “tremendous assignments” that often need close help by parents, who themselves have to learn new digital skills. (IANS)

Next Story

The Best Ways to Finance Buying a Car

Buying a car? Dont worry, we have a number of options for you to choose from

0
Car showroom
Stop worring about savings while buying a car now. We bring to you various options to choose and decide from. Pixabay

So, you have set your sights on getting your own car. If you have saved enough, you can pay the entire amount at one go and not have to worry about anything. But the average person might not have that much money. If you too belong to that group, then you need not fret. Have a look at the various options that you have and decide for yourself.

1. Loan

Get a loan from a bank or any other finance company. If you have a good credit history, this option can turn out to be the cheapest. To get the best interest rate on your loan, you may need to look at different options. NowLoan can help you find the best lender.

Pros

  • You get the ownership right from the start
  • Formalities can be done online

Cons

  • Requires good credit history
  • It can affect your ability to borrow more
auto financing car
If you buy a car with the help of a loan then you get the ownership of the car from the start. Pixabay

2.Personal Contract Purchase

At the start, you pay a deposit. After that, you need to pay a monthly payment for a period of 2 to 4 years. Once the contract ends, you can pay a final amount of money and buy the car. Or, you can exchange the car for a new one and continue as usual. Or, you could simply not continue any further and return the car.

Pros

  • Greater choice after the end of the contract
  • Flexibility in terms of payment

Cons

  • You may have to pay extra for mileage higher than a certain limit
  • More tear and wear can result in higher charges

3.Personal Contract Hire/Lease

If you simply want to hire a car and not buy it, then this method can turn out to be cheaper. Under this process, you provide a deposit. You continue to pay monthly instalments until the end of the lease contract. Once the contract ends, you need to hand the car back.

beautiful car
You can hire a car if you want flexibility in terms of payment. Pixabay

Pros

  • Flexibility in terms of payment
  • Monthly payment includes servicing and maintenance costs

Cons

  • Deposit needed of 3 months payment
  • In the end, you have to give up the car

4. Hire purchase

In this payment option, you are hiring the car until you finish paying the whole amount. Once the last instalment is paid, the ownership of the car transforms to you. First, you need to pay a deposit of around 10% of the price. Then, you need to pay a monthly instalment for a certain period.

Read More: Live Music Can be Rocked Virtually Also Now

Pros

  • No extra charges for wear and tear or mileage
  • Flexibility in duration

Cons

  • You will get ownership only after you have paid the final instalment
  • The monthly payment is higher than other option

Conclusion

Each of the options listed above has its advantages and disadvantages. You will need to look into the ones that are most suitable for your needs. Calculate the total cost by including the deposit and each monthly payment. Know about extra or hidden charges you may have to pay. You can get in touch with a trusted broker like NowLoan online to get the most suitable lender and easily get that dream car.

[Disclaimer: The article published above promotes links of commercial interests.]

Next Story

Understand Your Kids’ Perspective to Make Them Exercise

Parents need to put themselves in children's shoes to make their kids take time off the screen and exercise

0
little kid
Being strict parents will not help, you need to understand your kid's perspective. Pixabay

Strict parenting may not always yield the best results, especially when it comes to making your kids take time off the screen and do some exercise, suggests new research Lifestyle news.

Rather, parents who know a child’s preferences and participate in the activities become more successful in keeping him/her motivated to do exercise, showed the findings published in International Journal of Environmental Research and Public Health.

Parental control, meaning varying degrees of coercion and disregarding the child’s role in exercise-related decision-making, was perceived as undesirable and reduced enthusiasm for exercise.

“For example, strong, public and overt encouragement in tournaments and games was perceived in some cases as embarrassing and even shameful,” explained postdoctoral researcher Arto Laukkanen from University of Jyvaskyla in Finland.

kids team
“For example, strong, public and overt encouragement in tournaments and games was perceived in some cases as embarrassing and even shameful,” explained postdoctoral researcher Arto Laukkanen. Pixabay

“In addition, underestimating and ignoring the temporary cessation of exercise motivation, for example, was perceived as controlling and reducing enthusiasm for exercise.”

The study involved interviews with 79 first-, second-, and third-grade students.

The researchers found that children aged 7 to 10 years had a clear distinction between parenting that increases and reduces exercise motivation.

A very typical unpleasant exercise experience for children was related to limiting screen time and the associated command that the child should go out to exercise.

baby-girl-kid
Parents want to limit the screen time of their kids and want them to exercise. Pixabay

Read More: India Extends Lockdown Till May End

“This is very contradictory, as parents try to take care of the children’s screen time and adequate level of exercise, but at the same time they may be contributing to alienation from exercise,” Laukkanen said.

“Perhaps exercise should not be set in opposition to screen time, but one should strive to organize independent space for both of them in everyday life.”

However, the researchers said that further research on this topic was urgently needed from the perspectives of both children and parents. (IANS)