Introduction
Education loans open doors to better opportunities — but they can also become a long-term financial burden if not managed wisely. Many students wait until the moratorium period ends before starting repayment, which often leads to higher interest accumulation.
At Shivafinz, we believe financial awareness is the first step toward financial freedom. In this article, let’s understand how you can save lakhs on your education loan by applying a few smart strategies.
💡 What Is a Moratorium Period in an Education Loan?
The moratorium period is the time when a borrower is not required to pay EMIs — usually covering the duration of your course and 6–12 months after completion.
However, what most students don’t realize is that interest continues to accumulate during this time, and when repayment begins, your total outstanding loan amount increases significantly.
💰 Why You Should Start Repaying Early
Even if you are not required to pay during the moratorium, starting partial payments early can make a huge difference.
Here’s how early repayment helps:
- 🏦 Reduces total interest burden — you save lakhs over the loan tenure.
- 📉 Shortens repayment period — become debt-free faster.
- 💳 Improves CIBIL score — builds strong financial credibility.
- 💼 Makes you eligible for future loans easily — like car or home loans.
⚙️ Smart Strategies to Save Lakhs on Education Loan
1️⃣ Start Paying Interest During the Moratorium
Even if you cannot start full EMIs, begin by paying just the simple interest component while studying. This prevents your interest from compounding.
2️⃣ Use Bonuses or Incentives for Part Payments
Got your first job or received a bonus? Use a portion of it for part-payment of your education loan. Even small prepayments every few months can drastically reduce the interest amount.
3️⃣ Choose a Shorter Loan Tenure
While longer tenures mean lower EMIs, you end up paying more interest. Opting for a shorter tenure ensures quicker repayment and lesser total outgo.
4️⃣ Avoid Missing EMIs
Late or missed payments can lead to penalties and negatively impact your CIBIL score. Automate your EMI payments to stay on track.
5️⃣ Refinance or Transfer Your Loan
If your current lender charges a high rate of interest, consider transferring your education loan to a bank or NBFC offering better terms.
📊 Example: How Early Repayment Saves You Money
| Scenario | Loan Amount | Interest Rate | Tenure | Total Payable | Savings |
|---|---|---|---|---|---|
| Without Early Repayment | ₹10 Lakhs | 11% | 10 years | ₹17.5 Lakhs | — |
| With Early Interest Payment | ₹10 Lakhs | 11% | 10 years | ₹15.2 Lakhs | 💰 ₹2.3 Lakhs Saved |
Even paying just the interest during the moratorium can help you save lakhs over time.
🧭 How Shivafinz Helps You Manage Education Loans
At Shivafinz, we guide students and parents throughout the loan journey — from application to repayment planning.
✅ Free education loan eligibility check
✅ Guidance for domestic and international study loans
✅ Moratorium and repayment planning
✅ Assistance in refinancing or reducing EMI burden
Whether you are planning to study in India or abroad, Shivafinz ensures your education loan never becomes a financial stress.
💬 Conclusion
Don’t wait for your moratorium to end — take charge of your finances today. The sooner you start repaying, the faster you become debt-free.
For personalized loan guidance and expert repayment strategies, connect with Shivafinz today and make smarter financial decisions for your future.