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!

Comments

Post a Comment

Popular posts from this blog

MBA specializations that you can do in India with the help of study loans

Image
  For the last 15-20 years, the number of students who are opting for an MBA after their graduation has increased rapidly. Reasons behind this sudden increase include demand for candidates with a specialization, lack of job opportunities for basic degree holders, and to increase one’s market value. This has caused students from all the streams to go for an MBA that would give some weightage to their profile. However, unlike earlier times when only a plain MBA degree used to be offered, there are different specializations in MBA that are being offered by B-schools to their students based on their field and requirement. We have listed below a few types of MBA specializations that you could apply for with the help of study loans : 1.       MBA in Digital Marketing One of the most sought after specializations, an MBA in digital marketing is offered by all of the B-schools in India. Digital marketing has made it easier for brands to connect with potential customers using the internet.
Read more

Here’s all that you need to know about the parental involvement in CBSE schools in Gurgaon

Image
  Gurgaon is known to have the best ranked CBSE schools in the country, with experienced faculty members who are also known to provide quality learning methods that result in upgrading the education level.     The one aspect that makes all the CBSE schools in Gurgaon unique is their constant efforts of encouraging parental involvement. Wondering what is parental involvement in schools? Don’t worry, this article will provide you with all the information regarding parental involvement. Read on to find out how.                                                                                                            What is parental involvement all about in school? It means that parents wholeheartedly contribute to the education process of their child. Parents contribute by volunteering in classrooms and helping with organizing functions. Schools that give utmost importance to parental involvement believe that it leaves a positive impact on the academic and overall achievement le
Read more

4 questions to ask yourself before taking an education loan for studying abroad

Image
  Education loans have helped millions of middle-class students to pursue their higher studies in prestigious universities around the world. It is a boon for the ones who can study further in their fields but do not have funds to pay their higher education expenses. In recent times, education loans for studying abroad have become more accessible, which have resulted in students actively applying for such loans. In this article, we will tell you about 4 questions that you should ask yourself before getting an education loan for studying abroad , and thus, be a responsible borrower.       Do I satisfy the eligibility criteria, and do I have documents to prove it? This is the first question you should tackle. If you don’t stand eligible for an education loan for studying abroad, the other questions turn invalid. So, know the education loan eligibility criteria of the lenders. See if you fulfil those eligibility criteria. And gather proofs or documents that prove your eli
Read more