Education Loan- Borrowing Principles

1. BORROWING PRINCIPLES
Education Loan
3
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2. THERE IS NOTHING INHERENTLY
RIGHT OR WRONG
ABOUT BORROWING.
WE MUST USE CREDIT WISELY.
UNFORTUNATELY, MANY OF US BORROW MORE THAN WE CAN HANDLE.
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3. Robert Kiyosaki
Author of Rich Dad Poor Dad
EDUCATION IS
MORE VALUABLE
THAN MONEY, IN
THE LONG RUN.
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4. Have a clearly
defined academic
and career goal.
01
EDUCATION LOAN PRINCIPLES
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5. Contribute all that you
can before considering
loan options.
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EDUCATION LOAN PRINCIPLES
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6. Start early. Have a
repayment strategy
even before you finish
your education.
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EDUCATION LOAN PRINCIPLES
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7. Make use of the
moratorium period.
Save and build a corpus.
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EDUCATION LOAN PRINCIPLES
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8. Take advantage
of interest rate
fluctuations.
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EDUCATION LOAN PRINCIPLES
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9. Student borrowers get
many relaxations like
women can seek a lower
rate.
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EDUCATION LOAN PRINCIPLES
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10. Set a comfortable
EMI. Don’t be over
ambitious.
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EDUCATION LOAN PRINCIPLES
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11. Loan repayment is not
your only priority. Save
and invest for future
goals.
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EDUCATION LOAN PRINCIPLES
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12. SHOULD YOU PREPAY?
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13. Do your own
cost-benefit analysis
Interest payment on loan.
Banks may have prepayment
penalty charges.
Potential fluctuations in future
interest rates.
Potential costs
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14. Do your own
cost-benefit analysis
Interest paid is eligible for tax
deduction u/s 80E.
Potential earning from
investments.
Potential fluctuations in future
interest rates.
Potential benefits
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15. For exceptional and genuine cases banks may consider extending the repayment period.
Talk to your bank.
WHAT IF YOU
DON'T GET A
JOB?
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