A social media user has caught the attention of the internet after revealing that she has paid off her student loan ₹30 million in just 2 years. As? The young professional revealed that she used multiple sources of income to pay off the debt she took to get her MBA from IIM, Calcutta.
How a student passed IIM Calcutta ₹30 thousand MBA loan for 2 years
Using the Instagram ID @avani.rathore25, the user revealed that she has secured multiple sources of income to pay off her debt. She also pointed out that she had no dependents, which further helped her repay the loan.
She wrote, “I paid off my IIM Calcutta MBA loan in 2 years using 4 sources of income.”
Four sources of income
Rathore revealed that she started by building a strong financial base with the help of liquid savings along with other investments in mutual funds. Her liquid savings were later used for her fee instead of liquidating any other savings, including PPF. As a result, she was able to keep her investments secured while managing costs with credit.
Calling it ‘Pre-MBA Savings’, she said, “Before MBA, I worked for two years. I didn’t touch my investments (mutual funds, PPF etc) but used my liquid savings for fees.”
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During her MBA, she got an internship, which further helped her repay the loan. “Internship Scholarship: I did a summer internship during my MBA that was well paid,” she continued.
In addition, Rathore worked part-time last year to contribute more towards her tuition fees. “Part-time work: Since I got my PPO, I started working part-time during my second year, earning extra on top of my fee,” she added.
The user revealed that after securing a job, she was able to contribute even more to the loan because she had no dependents. “Salary after MBA: Fortunately, I have no dependents, so I was able to devote a significant portion of my salary to paying off my post-graduation loan.”
Student loan foreclosure
“If you’re working to pay off your loan, remember: it’s a marathon, not a sprint. Every little effort adds up,” she concluded her post.
Revealing her financial strategy, she also added: “Many people might not consider it a very good financial decision because you get an unsecured loan at a very good interest rate. So it makes sense for people to keep paying the minimum amount and invest the rest of the money to get better returns in other areas. For me personally, I didn’t want the headache of a loan because I wanted to quit my job and start something new.”
Her post received several reactions from netizens.
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Netizens react
Among them, one user wrote: “Makes sense! Thanks for sharing.” “Technically it’s foolish to pay off an education loan early because of two main reasons: 1. Cheapest debt 2. Tax benefits For personal peace of mind it could be a wise decision,” argued another.
Someone else also said: “Good decision.”
(Disclaimer: This report is based on user generated content from social media. Livemint has not independently verified and does not endorse these claims.)
