Student loan, the first major debt in any fresh graduate’s life can be a huge liability to pay-off if not paid enough intentness. It is the first legal help that a student receives from the state government/ national or private sector bank. Though it is a help given to any student to continue his higher studies by a bank on which he agrees to pay a pre-specified interest once he gets a job. So if you fall in that category then from the very first day you should follow below stated tips to make sure that you can pay your student loan faster.
Prepare an action plan
Once you have got the loan, the first thing that you are supposed to do is to draw up an action plan. Action plan consists of the steps that you will use to repay your loan. Bank clears everything in advance i.e. installment amount, duration of the loan, and starting date of loan installments; hence you can easily plan your actions. Also formulate a budget, so that you have a better understanding of your income and expenditures and can take away enough money from your earnings to pay back your loan installment.
Please note that certain banks grant some time before the loan installment starts, usually after one gets a job and able to pay the installment, while others start charging interest immediately.
Try to make payments during your course
You should be smart enough to grasp the way bank works; hence the later you make payment, the more you have to pay to it in the form of interest. Hence try your best to start paying at least your interest amount during the course. It will not let that extra burden fall on your shoulders once you graduate.
Conjoin your loans into one account
It may look eccentric to some people, but if by chance you have more than one account from which loan installment get deducted. In other words if you have more than one loan going on at the same period, then better you combine all the accounts into one so that you can remember on month to month basis as how much you have to pay. Also, it eliminates any confusion regarding the date of payment as you have to remember only one date despite two three in a month.
Choose Auto Debit Option
It is one more way to wipe out any confusion regarding loan payment. When you manually transfer or deposit money into the loan account, there are chances that you miss the date of submission sometimes due to work pressure or any other reason. Hence opt for auto debit option, so that loan installment gets deducted on pre-specified date ineluctably. It can save thousands of rupees that you end up paying as penalties and charges.
Try to pay more than what is required
Pay more than what is required on a month on month basis, so that you can finish your loan before its due date without putting any large sum at a later stage.
So if you pay attention to these five tips, you cannot only pay back your loan faster, but also can save thousands of rupees in the form of penalties and bank surcharges.