Education loans are pathways for many aspiring students to achieve their dream of education in India or abroad. There are many banks that offer student loans at low-interest rates and hassle-free procedures. However, acquiring education loans might not be as much of a struggle as much as maintaining a healthy repayment system. Monthly payments towards the loan are very important to maintain a good credit score and also to close the loan quickly. A fantastic way to identify monthly payments is by using a student loan repayment calculator tool on online websites. With this tool, you can systemize future payments by knowing the EMI amount earlier and developing a healthy relationship with finance. The blog below will help you get more familiarized with a student loan repayment estimator.
About The Student Loan Repayment Calculator
We use tools and applications to make our daily lives easier and we put in extra effort when it comes to financing. Having a perfect tool to estimate repayment details for your education loan is what this calculator is all about. With this tool, you can get an estimate of what the future EMIs would be with a few inputs like loan amount, interest rate, course duration, grace period and loan duration. The user-friendly but sophisticated tool helps efficiently calculate student loan payments so that you don’t have to stress yourself later on.
How To Use The Student Loan Repayment Calculator?
The process is very straightforward when utilizing the tool and anybody with basic knowledge can use it.
- You will need to enter the loan amount that the banks have offered you or an estimated loan amount that you might be planning to take.
- Next would be to add the interest rate the bank is offering. You can find this detail on the bank website too.
- You can then add the loan duration. This is the estimated tenure that you might need to complete your loan payments.
- Course duration is the tenure of the course or programme that you are pursuing or going to pursue.
- Finally grace period is often a duration after graduation that banks provide where you don’t have to start the repayments. This can range from 6 months to 12 months depending on the bank.
That is it! With these few inputs, you will get the interest amount that you will have to pay and a detailed table showing the breakdown of the EMIs till the very last month. You can always contact the support team of the website if you require additional assistance and any help.
Benefits Of Using A Student Loan Repayment Calculator
The repayment calculator is a very effective tool and comes with plenty of benefits that students can enjoy.
- Financial Planning – Everybody needs to have a grip on their financial situation to have a stress-free life. With the help of a repayment calculator, you can efficiently plan your monthly expenditure with the inclusion of loan EMIs.
- Interest Amount – Banks have certain interest rates that they apply to the loan offered. This interest amount greatly increases the overall amount that you will have to pay back. A student loan repayment calculator calculates the interest amount based on the interest rates of the bank.
- EMI Breakdown – The borrower has to pay monthly instalments towards the overall loan amount and that will last until the chosen duration. The student loan payoff calculator generates a complete breakdown with interest rates and principal amount till the very last month.
- Free of charge – The tool does not require any sort of payment and you can get a complete loan repayment breakdown for free.
- Simplicity – Using a student loan income based repayment calculator is completely hassle-free and requires no extensive computer knowledge.
FAQs
1. Why should I use a student loan repayment calculator?
After you acquire an education loan, you will need to repay after a certain duration in the form of EMIs. Planning ahead is always a good strategy to systematically organise the monthly payments and a student loan repayment calculator can assist in identifying the EMIs.
2. What inputs does a student finance repayment calculator take?
Using a loan repayment calculator is very straightforward and the primary inputs it takes are; loan amount, interest rate and loan tenure.
3. What is a comfortable monthly payment for an education loan?
This could vary since EMIs for loans depend entirely on the interest rate, loan amount and tenure of repayment and also your monthly revenue. It is generally good to practise closing loans early off, by paying a larger EMI.
4. What happens if I don’t pay the monthly payments towards the education loan?
There will be warnings and notices sent to the borrower and guarantor. The CIBIL score will also take a massive hit and the profile would be blacklisted hence no future loans can be availed. If there was collateral against the loan, then the bank can legally sell it off.
If you liked reading this blog on ‘How To Use A Student Loan Repayment Calculator’ then make sure you check out our other articles below
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