Looking At 3 Myths Related To An Education Loan EMI Calculator

An education loan EMI calculator is a digital tool that allows a potential borrower to understand the EMI that they will possibly incur. The EMI that the calculator provides is based on three variables that you will have to input: the principal loan amount, the loan tenure, and the rate of interest. While the education loan EMI calculator is a useful tool and increasing in terms of popularity, there still exist many misconceptions about it. These misconceptions can stop a potential borrower from utilizing this tool and gaining the various benefits it provides. To raise awareness in this regard, we take a look at 3 such myths and debunk them to your advantage.

Myth #1 - An education loan EMI calculator can be used only by the technologically savv

Fact - Some people have the impression that an education loan EMI calculator requires a lot of input and includes multiple steps to give the EMI estimate. However, this is simply a myth. The education loan EMI calculator is made in an easy to use manner. All one has to do is visit the website, enter the credentials, and click on ‘calculate’. The EMI will be given by the calculator in a matter of a few seconds. You can access the calculator through a phone or a laptop as long as it has a decent internet connection.

Myth #2 – The education loan EMI calculator gives wrong estimates always

Fact - This myth is quite widely spread because the calculator gives the user an estimation of the EMI and not the actual EMI. Borrowers need to understand that the EMI they will be quoted by the lender will differ from the estimate given by the education loan EMI calculator. However, the degree of difference will not be that huge or considerable. The difference occurs because the actual EMI is dependent on many factors besides the three variables that the calculator requires. Along with the three variables, the lender will also consider the following factors when you are opting for an education loan:

Whether you have provided collateral against the loan - Applicants who have provided a form of security against the loan will be quoted a lower interest rate than those who have not.

Your past academic performance - Some lenders give benefits to those students who have had a good academic record as this indicates their dedication to studies and a higher chance of securing a well-paying job.

The course and institute you have selected - When you choose a technical course or get admission into a well-reputed university, it indicates a potential for higher income in the future. That is why the lender offers a lower interest rate to such applicants.

Myth #3 – An education loan EMI calculator is chargeable

Fact - Many people think that since an education loan EMI calculator offers useful facilities, it may be chargeable. However, that is not the case. Most leading lenders offer the calculator feature completely free on their websites.

As mentioned earlier, do remember that the price quoted by the education loan EMI calculator is an estimate and will differ from the actual EMI. That is why it is highly advisable to have a discussion regarding all your doubts and questions with your lender before you go ahead with major decisions. Thank you for reading!

I am a finance consultant who loves to write during his spare time. I have considerable information about education Loans.