As education inflation is increasing with a rate of around 10% year on year. People are force to avail Education loan.The cost of educational loan can be avoided if start investing small amts Systematic investment plan.
Lets see a example of Educational loan cost and implication.
Mr Vikramjeet Singh is a bright student and wants to pursue MBA and do want to achieve greater heights.His father took a loan in 2011 of 390000/- interest rate 13%,emi 9600/- for 5 years.the emi started in 2014 and the final amt with interest he has to pay is 576000/- till 2019.
This amt is equal to one year salary of Vikram.
Instead if his father has started a sip of 500/- monthly and continued till his graduation i.e 20 yrs the amt would be equal to 3.80 lacs and that too tax free amt.
Thus Gifting a sip to children on their first birthday saves you from Educational loan tomorrow.