With the increasing cost of higher education, it is becoming increasingly difficult for students to pursue higher education.
The high education cost has been one of the main reasons for worry amongst the students. To avoid losing opportunities, students often turn to financing their education via education loans.
But education loan isn’t always that simple. With procedural and interest rate variations, practically all banks and financial organizations provide education loans.
The tricky part is figuring out the EMI. Some of these loans are given at a very high interest rate making them more expensive. Herein lies the importance of the education calculator, it enables you to make the best choices.
It is important to know and calculate the EMI costs beforehand for what amount the loan is taken along with its interest rate and the repayment time/tenure.
Advantages of using an education loan calculator
One benefit of using an EMI calculator for student loans is that you can see the results right away. Using a loan calculator is very convenient.
You may obtain your EMI by entering the loan amount, interest rate, and loan tenure without having to perform any complex calculations. Additionally, these EMI calculators are free and simple to use.
Benefits of education loan calculator
Let’s find out the benefits of education loan calculators:
Saves time and effort: People can easily know the EMIs they will be required to pay by using an education loan calculator. The need to invest your own time and effort for the interest EMI calculations is eliminated.
They are not required to spend time performing manual calculations. The calculator will show customers how much they would need to pay in EMIs when they enter the loan amount, interest rate, and loan tenure.
Results that are accurate: If one is not precise and careful with the numbers when calculating the EMI amount, there is always a chance for error. On the other hand, using education loan calculators guarantees precise outcomes.
Financial planning aid: Users can determine the amount they would be required to pay in the form of EMIs by entering important information about an education loan into the calculator.
Knowing this is crucial since it helps them assess their financial situation and determine whether they can afford the loan and also helps them formulate a strategy for loan repayment.
Personalized calculations for EMIs: You can easily personalize your EMIs to your needs and establish your repayment schedules accordingly with the help of online EMI loan calculators.
You can experiment with different numbers with the input variables to examine the several EMI alternatives accessible to you in order to choose the one that best suits your needs.
You can choose the amount of your EMI, the length of time you want to repay your education loan, the banks that offer you the greatest interest rates, and repayment terms using these online loan calculators.
Also read: What are the benefits of education loans in India?
Factors affecting interest rates on Education loan
Type of educational institution: Chances are that a lesser interest rate would be levied if the applicant had been accepted into one of the best colleges in India or overseas. In addition, banks might not demand collateral.
Gender: It has been noticed that most institutions provide female students with a lower interest rate than they do male students. The major goal of this is to inspire young girls to continue their studies and flourish in the classroom.
Credit history of parent or guardian: When a child applies for an education loan, the parent or guardian often serves as the guarantor.
This is also the case when the student does not have a credit history the lender would require a family member or guardian to be the guarantor of the loan.
In instances like this, it is vital for the guarantor to hold a good credit score so as to ensure that the loan application is not rejected.
A credit score of the applicant: The lender may be willing to offer a lower interest rate on an educational loan if the applicant himself or herself has a good credit score.
The higher the credit rating, the lower will be the interest rate charged. Maintaining a score above 750 is always advised since the applicant will be regarded as a creditworthy customer.
This is why using an education loan calculator can be a benefit for those planning to take the loan. It helps you determine the final amount, personalizes your EMIs, and figures out the best course of action before making a life-changing commitment.
Finding the best education loan is tough but we can simplify it for you! Connect with our experts today to find the best and low-interest education loans for your child’s bright future.
