Suggestions needed for education loan repayment!
Hello everyone! Four years back I(23 F) took an education loan for my btech. Details of the loan: Amount sanctioned : 4 lakhs out of which 3.7 lakhs was disbursed, Interest rate ~ 8.2%, EMI~ 3k
I'll be starting my job soon (70k in-hand and no major expenses on accomodation/food etc.) and still have 6-7 months of the moratorium period left with me. How should I proceed with loan repayment?
Pay the interest in the moratorium period and slowly pay the principal amount (5k/10k) in the subsequent years and also create emergency fund side by side
Pay the education loan as quickly as possible at the expense of the emergency fund and savings.
I've heard that there's tax exemption at the interest of the education loan. How does it work?