In how much time do the MBA graduates repay their loan?

I finished my educational loan in 1 year and 3 months. The total amount I paid was Rs. 18.9 lac.

If seen as a pure financial decision, it is always right to prolong your IIM MBA loan for as long a period as you can. Banks give you loans for durations as long as 9 years or more. The loan rates are low enough and you also get tax benefits over education loan interest. Hence, you could just put the surplus cash into an FD instead of paying your loan early.

But that said, not everything can be dealt in financial terms. I am a hater of debt and the burden of the monthly EMIs always terrify me. Hence, I decided to payoff my education loan as soon as possible.

I had an educational loan of around 17–18 Lac for my MBA at IIM Calcutta (I also took a loan of around 3.5 lac for my student exchange). So, I decided to pay it off as soon as possible. My goal was to finish the education loan in 2 years maximum.

My pay at that time was Rs.16 lac per annum. I stayed with my parents and hence my expenses were at minimum. I was saving >80% of my salary and paying everything at one go.

With enough motivation and support from parents, I finished my educational loan in 1 year and 3 months. The total amount I paid was Rs. 18.9 lac. I could finish it earlier than the targeted 2 years as my pay has increased later on and also I earned through other sources (Freelancing).

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