The cost of education in India and abroad has been increasing rapidly, making it challenging for the parents to finance their child’s education. As per reports, the cost of education has been increasing at a rate of 15% every year. The course fees at reputed institutes are extravagantly high too. To help students arrange funds for higher studies, lenders provide different education loan solutions. Alongside, tools like an education loan calculator help with easy computation of the required amount, making financing convenient.
These financing options extend necessary funds to help with higher education or post-secondary education. These loans allow you to conveniently meet your course fees, exam fees, living expenses, as well as the cost of books and supply requirements. A student pursuing a particular course is the primary borrower of an education loan. His/her parents, sibling, or spouse can be the co-applicant for that loan.
The core idea behind disbursing education loans is to make education accessible to all, improve the quality of education, and help the youth achieve their career aspirations. Government-backed employment schemes like Pradhan Mantri Rozgar Yojana further aim at educating the youth and generating self-employment opportunities for them. With funding becoming accessible through such schemes, more individuals will be motivated to put their best efforts and accomplish their career goals.
What is an education loan calculator?
Estimates are a crucial factor while availing loans. For education loan, it becomes a lot more critical due to its contribution to an indispensable aspect of life. The intention of borrowing an education loan is to make sure it covers the entire expenditure of a course. Thus, as a first step towards availing such loans, you can enquire about the expenses of your selected course.
For example, you can check the fee structure of the best American universities to pursue your undergraduate degree. Once you gain a clear idea about your fund requirements, you can proceed with a loan application with a suitable lender.
To gain a better understanding regarding your loan estimates, you can proceed to use an education loan EMI calculator. It is an online tool which helps in calculating the EMIs (Equated Monthly Instalments) of a loan. The three parameters based on which the loan EMIs are calculated in these tools are:
- Principal (the sum borrowed).
- Tenure (the stipulated time given for loan repayment).
- Interest rate (the interest charges levied on the loan by a particular lender).
Students can pursue any educational and professional courses on EMIs as well. Nevertheless, the instalments and liabilities must be pre-discussed with the authorities. Similarly, an education loan EMI calculator lends you a thorough idea of your loan’s affordability, payment liabilities, and so on. It also assists in planning your repayment in a better and structured manner.
How to use an education loan EMI calculator?
Applicants can access the calculator on the web portal of a lender for free. The calculator appears in the form of a slider, which a user needs to adjust to provide the inputs. Check the following points to know how to use an EMI calculator:
- Enter the amount of principal you wish to borrow as an education loan. You can also change the principal entry as per your loan amount requirement.
- Select the tenure, which seems convenient for you to repay your advance.
- Specify the rate at which a lender is providing you with your education loan.
- Once you enter the three inputs, the education loan calculator will display the amount of EMIs you will need to pay each month.
The calculator also shows the total interest payable and total payment on a loan. The total interest payable also helps you determine a loan’s affordability. It is the total expense you will need to bear as interest on a loan.
Apart from education loans, there are few other funding options which might help to suffice education expenses better. For example, a loan against property is a common mode of funding which parents and students avail to finance higher education. These loans are known to extend a higher sum with an extended repayment tenure to a borrower.
Various financial institutions now also include pre-approved offers on loans to expedite the process of financing. These offers can be availed on multiple types of financial products like home loans and loans against property. By providing your name and contact details, you can check your pre-approved offer in no time.
An education loan calculator assists in borrowing a suitable loan amount as per the funding requirements. Users can also change the entries to arrive at an EMI which they can easily afford.