Shreyaa Kapoor

Shreyaa Kapoor Instagram – What if I told you, you could actually make you education loan interest free? 🌱

The answer lies in systematic investment plans (SIP). SIPs can be used to repay the education loans. ✅

By investing in mutual funds through SIP mode, you can create a corpus that can be used to repay the education loan early. Let us understand this through an example.🌟

As discussed in the reel – An education loan of Rs. 25 lakh for 10 years at an interest rate of 10 percent per annum (pa). You will be required to pay an EMI of Rs.33,038 monthly. 🪴

If you just start 10 percent of this EMI, in mutual funds through an SIP with an expected return of 12 percent then you can repay the education loan in the 102nd month when the investment amount exceeds the loan balance. 🙌🏼

This will save 18 EMIs valued at Rs. 5,94,678 and interest of Rs. 44,574.🫶🏼

Infact, As the amount of SIP increases to 25 percent, the number of EMIs saved doubles. You can repay the loan early and save more in terms of EMIs and interest as you increase the SIP amount!🫡

Save this for your reference and share it with all your friends who have taken an education loan!🗒️
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[education loan, loan tips, save money, personal finance, finance tips, abroad education, education loans, EMI, mutual funds] | Posted on 11/Jul/2024 19:00:13