5 Easy Ways to Pay Off Student Loans in India

With fees for professional courses increasing rapidly, more and more students in India are opting for educational loans. While these loans help them sail through their courses, the burden of repaying these loans lies on these student’s shoulders for a rather prolonged period of time.

However, today’s students do not have to be burdened with debt for numerous years after graduation. With some intuitive steps, student loans in India can be paid off easily instead of dragging on for ages.

The pointers below will help you learn how you can do this:

1. Be Thrifty in your Expenses Once you are Employed

A major reason for which student loans in India take time to repay is that students get carried away, once they get employed. No sooner do they land their first job that they get tied up in all kinds of additional expenses. These include buying cars for which they pay hefty EMIs, expensive credit card debt, and so on.

When the burden of student debt dangling over you, it is advisable that you keep all these liabilities down to the barest minimum. The focus should really be to pay off your student loan as quickly as possible, without incurring additional debt which will only aggravate your overall credit burden.

2. Pay More than the EMI

Once you are approved for student loans in India, the EMI or Equated Monthly Installment that you will have to pay every month to the bank is pre-decided.

Now, there is no rule that you are to pay only this amount back to the bank. In the event that you have surplus funds, you should allocate them towards paying the student loan.

Let’s say your current income leaves you in a position where you can actually afford to pay twice the EMI amount. Instead of splurging elsewhere, it is advisable that you pay more than the EMI so that the loan is repaid sooner.

3. Prepay Student Loans in India

Student loans in India can easily be prepaid. Let’s say you have been doing really well in your job and have received a hefty Diwali bonus. Or there is a situation where a reasonable lump sum amount of money has come your way through inheritance or sale of a property, etc.

Student Loans in India
Prepaying Student Loans in India whenever feasible makes a lot of sense

In either scenario, you can channel the large sum of money that you have received towards prepaying your student loan. This will help you cut down on the interest that your loan in earning.

4. Maximise your Income

Another avenue to pay off student loans in India fast and easy is by maximising your income. Let’s say you are in a job which leaves you with ample free time, especially over the weekend.

You can use this time to earn additional income which you can use to repay your student loan. Today, there are so many different ways in which free time can be turned into a time to generate additional income.

The Internet has created amazing opportunities for this. Consider sites like Upwork which have a plethora of online freelance work available on them. Additionally, you also have the option to drive for cab aggregators like Ola or Uber. You will be surprised just how much some drivers manage to make even while driving part-time!

The key is to constantly be on the lookout for avenues that allow you to maximise your income, which you then use to repay your student loans.

5. Alternative Loans to Repay Student Loans in India

This is a tricky one that you should consider with ample prudence. Yet, if there is a loan that is possibly more favourable than your student loan, you can consider getting a new loan. You can use the more favourable loan to pay off your student loan completely and then work towards repaying the loan you just availed.

There are loans with more favourable terms, including lower interest rates, when compared to student loans. This especially depends on the bank you have received your student loan from. The key is to carry out ample research on this front before making a decision.


Small intuitive steps can really go a long way in ensuring that you are able to repay student loans. However, when you consider these tips and make a conscious effort to do so, repaying student loans can be a breeze!