What Is an Education Loan Calculator?
An education loan calculator is a financial tool that helps you figure out how much you’ll have to pay each month in equivalent monthly instalments (EMIs). The calculator will tell you this based on your chosen college loan amount and the repayment period.
Remember that your loan EMI is determined by the interest rate and the length of your loan. Your loan’s EMI is made up of two parts: principal and interest. The EMI is normally fixed for the whole term of your loan and must be returned monthly. You pay more towards interest during the first few years of your loan’s term, and as you repay the loan, a larger part is shifted to the principal component.
Benefits of Using Education Loan Calculator
- Quick Results – Applicants can use this calculator to calculate the EMIs they would be responsible for paying for the pre-determined tenor and interest rate at which their education loan has been supplied, and they will get their results within seconds.
- Ease of Use – This EMI calculator relies on the applicant submitting three crucial pieces of information: the principal amount of the loan, the applicable rate of interest, and the loan term.
- Variable Combinations – You can easily insert different interest rates and periods into the educational loan calculator to find a combination that would allow you to conveniently repay the principal amount without putting undue strain on your budget.
- Easy to Use – The majority of online education loan EMI calculators are user-friendly, free and simple to use.
Steps to Use an Education Loan Calculator
Step 1: Input in the calculator how much money you want to borrow as an education loan.
Step 2: In the next part, enter the education loan interest rate that has been offered to you.
Step 3: In the final area, select the loan tenor you think will work best for you. An education loan’s repayment length can range from 5 to 7 years, but due to the variety of flexible repayment options available, applicants can choose longer repayment periods of up to 15 years.
The school loan EMI that you are due to pay with the given combination of loan principal, term, and rate of interest will be visible on the right side of the sliders. The EMI will, of course, alter when the contributing parameters of the EMI calculator like the educational loan rate are changed.
The following information will be needed to use the educational loan calculator:
- Loan Amount- Mark the loan amount that you want to avail yourself of on the extremely responsive slider to update it.
- Mark the tenor applicable to your loan on the next slider, just as you did during the previous step.
- Update the interest rate that applies to your student loan in this area, in per cent.
- Update the processing fee that applies to your loan amount in the same way that you did during the previous stage.
- Are you interested in making pre-payments? You will see this yes-or-no question. Select the appropriate option based on your decision (and your bank’s availability of such an option).
What Is the Education Loan Eligibility?
The following are the eligibility requirements:
- The applicant and co-applicant must be Indian citizens and over the age of 18.
- The student must have received at least 50% in his or her boards and graduation.
- The student must have been accepted into career-oriented courses, such as medicine, engineering, management, and so on, either at the graduate or post-graduate level.
- The student must have secured admission in India or abroad through an entrance test/merit-based selection process after completing HSC (10+2).
- The co-applicant, i.e., the applicant’s parent(s) or guardian, must have a steady source of income.
Things to Think About When Getting an Education Loan
- Prepayment of Education Loans: Even if an education loan’s repayment period does not begin immediately after disbursement, there are a variety of prepayment options available. Prepaying the loan or a portion of the loan after the EMIs have commenced is the most usual option, but with educational loans, students also have the option of continuing to pay interest on the original amount before the EMIs are due to begin. This contributes to a significant reduction in EMIs or the length of the loan repayment cycle.
- Processing Fee: The majority of banks levy an extra cost as processing fees for student loans. This fee must be given by the applicant or co-applicant and must be submitted with the loan application. This cost could be as low as 1% of the principal amount, or there could be none at all. It’s a good idea to double-check the processing charge with your lending bank or in the loan documentation. The transaction fees are not included in the results of the education loan calculator.
In conclusion, it is important to evaluate all information before opting for an education loan abroad or for universities in India to find the best combination of factors that make your academic dream come true.