IIM pass out reveals how she paid off ₹30 lakh loan for MBA in just 2 years: ‘Might not be a good financial decision’

A social media user has grabbed the internet's attention after she revealed that she paid off her student loan of ₹30 lakh in just 2 years. How? The young professional revealed that she used multiple income sources to clear off the debt, which she took to pursue her MBA at IIM Calcutta.

How IIM Calcutta student cleared ₹30 lakh MBA loan in2 years

Going by the ID @avani.rathore25 on Instagram, the user revealed that she ensured multiple sources of income to pay off her debt. She also pointed out that she had no dependents, which further helped her to 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 she started off by setting up a strong financial base with the help of liquid savings alongside her other investments towards mutual funds. Her liquid savings were later used for her fee instead of liquidating any other savings, including PPF. With this, she was able to keep her investments secured while also managing cost with a loan.

Calling it ‘Pre-MBA Savings,’ she said, “Before my MBA, I worked for two years. I didn’t touch my investments (mutual funds, PPF, etc.) but used my liquid savings for my fee expenses.”

During her MBA, she picked up an internship, which further helped her to pay off her loan. “ Internship Stipend: During my MBA, I did a summer internship that paid well,” she continued.

Additionally, Rathore worked part-time in her last year to contribute more towards her college fees. “Part-time job: Since I received a PPO, I started working part-time during my second year, earning extra income to put towards my fee,” she added.

The user revealed that after securing a job, she could contribute even more to the loan since she didn't have any dependents. “ Post-MBA Salary: Fortunately, I don’t have dependents, so I could dedicate a significant portion of my salary towards loan repayment after graduation.”

Check:

Closing student loan early

“If you’re working towards paying off a 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, “A lot of people might not find this to be a very good financial decision because you get a collateral free loan at a very good interest rate. So it makes sense to people to continue paying the minimal amount and invest the rest of the money to get better returns in other areas. For me, personally, I didn't want a headache of a loan because I wanted to leave my job and start something new.”

Her post has gained several reactions from the netizens.

Netizens react

Among them, a user wrote, “Makes sense! Thanks for sharing.” “Technically it is foolish to pay off your education loan early, coz of two major reasons: 1. Cheapest debt 2. Income tax benefits For personal peace, 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 the claims and does not endorse them.)