A quick look at an educational loan calculator and its benefits

 

Do you know what you need to calculate the amount of education loan you can borrow?

 

An educational loan calculator.

 

It is a tool that keeps you from scribbling on paper when you need to find out the money you can borrow in the form of an education loan. This calculator considers the monthly income and obligations of your co-borrower to speculate the result. You already know what income means; obligations are the financial responsibilities that drain your co-borrower’s income. Based on these 2 variables and 2 more, this calculator tells you your student loan eligibility or education loan eligibility. Let us look at the fields that you have to populate to get the result.

 


Those 4 fields are:

 

1.   Monthly income

In this field, you have to put your co-borrower’s monthly income in Indian Rupees.


2.   Monthly obligations

In this field, you have to put your co-borrower’s monthly obligations. In other words, you have to put the things that claim your co-borrower’s financial attention. Those things may include various utility bills, insurance premiums, EMIs of loans, and other expenses like groceries, vehicle fuel, and so on. These obligations should be in Indian Rupees.


3.   The annual rate of interest

In this field, you have to put the annual rate of interest that a lender has quoted to you. Usually, the interest rate of education loans in India lies in the range of 9 to 14% per annum.


4.   Repayment tenure

In this field, you have to put the time you will take to repay your loan. This period can extend up to 15 years only.

 

 

When you populate these fields and press the calculate button, this tool tells you the total amount you can borrow from a lender. Keep one thing in mind—calculators of different lenders may use different ways to give you results. So, use the annual rate of interest a lender quoted to you on their calculator only.

 

Doesn’t this calculator make it easy to estimate the higher education loan amount you can borrow? Let us tell you some of the benefits of using this calculator:

 

1.     Saves time and efforts

Imagine that you need to pull out a paper and pencil to calculate your loan eligibility. Isn’t that so untidy? Also, you will need to know the formula to use for arriving at the result. This way of calculating your loan eligibility takes time and effort. An education loan eligibility calculator just asks you to put valid values in appropriate fields and then gives you the result.


2.     Provides accurate results

Do you know that when anyone calculates using paper and pen, the answer they arrive at is prone to human errors? The tool we are talking about runs its calculations on a computer processor which reduces the possibility of errors in a calculation to almost zero. In other words, it provides accurate results.


3.     Helps plan finances

When you know the amount of money you can borrow, planning the method to repay that amount becomes easy. This calculator helps you understand the impact of the toll on your financial health when you repay that loan.

 



Now you know how you can use an educational loan calculator when you plan to take a student loan. Have a nice day!

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