A complete and successful life depends on having received a good education. It is often compared to earning a degree from a prestigious university. However, the price of quality education is rising rapidly. That’s when students and parents can consider taking an education loan. However, don’t think of an education loan as a loan but rather as an investment that enables you to attend a top university to study the course of your choice. An education loan can assist you in laying the groundwork for a successful future career. In the sections that follow, we will define what is an education loan, explain how it works, what an education loan EMI calculator is, and how an education loan EMI calculator works. All of this will assist any student in taking the right step and possibly making an informed decision.
What Is An Education Loan?
It is essentially a financial loan that covers costs associated with higher education. Education loans are designed to pay for living expenditures while the borrower is completing a degree, as well as tuition, books, and other supplies.
How Does An Education Loan Work?
Students can get loans from the government or from lending institutions in the private sector. Federal loans which are basically government-backed loans frequently have lower interest rates, and some even have interest that is subsidised. Meanwhile, the application process for loans from the private sector tends to be more conventional, and the interest rates on these loans are usually higher than those on loans from the federal government.
What Are The Advantages Of Applying For An Education Loan?
- By choosing an education loan, you can avoid exhausting your family’s earnings, mutual funds, or fixed-income investments. In addition, some countries, like India, provide tax advantages for taking out education loans. Under Section 80 E of the Income Tax Act of 1961, interest on student loans is qualified for a tax rebate.
- Education loans cover more than just tuition fees. A student loan covers living and commute bills, educational material, a student laptop, and much more. As a result, these non-fee expenses will not add to your financial burden.
- Education loans are a great way for students to finance their education independently without having to depend on their parents. Additionally, when students repay their loans on their own, they begin to establish a credit history. Future student loans will be more affordable if they have a good credit history.
Repayment System Of Education Loan
After completing the course, most private banks give borrowers a grace period of six months to find a job and then begin the repayment process. Once a student secures employment during this time, they may begin the repayment process using Equated Monthly Instalments (EMIs). The two main deciding factors that affect your loan’s EMI are the interest rate and loan term. That’s when one needs an education loan EMI calculator.
What Is An Education Loan EMI Calculator?
An education loan EMI Calculator will assist students in determining how much EMI they will be required to pay. The student loan EMI calculator essentially supports students in better budgeting their finances. The education loan EMI calculator also helps students in obtaining a loan that they can afford and repay without stress.
How Does An Education Loan EMI Calculator Work?
What you have to do is first enter the educational loan amount (principal), interest rate, and loan tenure in the education loan EMI calculator, and it will instantly calculate the education loan EMI using an equation. The equation is as follows:
EMI = [P x R x (1+R)^N]/ [(1+R) ^ (N-1)]
P = principal
R = interest rate
N = tenure
Advantages Of An Education Loan EMI Calculator:
- It’s fast and efficient. The student loan EMI Calculator will quickly display your required EMI payment.
- Helps you with better financial budgeting. Basically, it helps you establish a spending plan for your expenses and start saving money for your financial targets.
- If one is not careful with the numbers when undertaking manual calculations, there’s always room for mistakes. However, education loan calculators guarantee accurate results.
- Additionally, you’ll learn how much of the loan’s principal is still owed. This will assist you in money management.
- It’s free. Student loan EMI calculators are user-friendly and free to use.
- Besides that, it offers various tenures and interest rates so you can experiment with them to see which one works the best for you.
PS. UniCreds offers student loans with low-interest rates. To support your dreams, apply today for an education loan and have a seamless experience!
FAQs about Education Loan EMI Calculator
1. What is an education loan interest rate calculator?
With a student loan interest rate calculator, you can find out how much interest you’ll be paying on your loan.
2. How can I compare educational loan offers using the EMI calculator?
You can compare the interest rates provided by different sources to determine which one works the best for you.
3. Is it possible to determine the EMI on student loans without using the EMI calculator?
Yes. Instead, you can use this formula: [P*R*(1+R)^n]/[(1+R)^n-1]
4. When does the repayment period begin?
Repayment usually begins when the course is finished.
Thank you for reading this blog on ‘Everything You Need To Know About Education Loan EMI Calculator’. If you’d like to read more blogs, here are some recommendations that may be of interest to you –
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