3 Types Of Education Loan Calculators You Must Use Before Applying

A student loan is indeed a great idea! It provides you all the funds you need to cover your education related expenses, moreover they come with attractive interest rates and long tenures that make the journey through and out of debt a simple that’s easy to handle.

However, no matter, going into debt is a huge decision. It’s probably also a once in a lifetime choice and to ensure you are making the right decision, it need to be supported with as much calculation, research and planning as possible.

This is where education loan calculator can come in to be so handy. Most lenders have a few calculators available on their websites that you can use to ease your planning and calculating. This article will discuss three of these calculators and highlight why you must use them before you sign your name on the application form.

1. The first education loan calculator you use is the EMI calculator.

Knowing your EMI amount before applying for the loan is a huge advantage. It will tell you if the loan amount you plan on borrowing is within your financial capacity or not. If you find the EMI amount too high, then you cannot afford to borrow the said amount. What you can do next is reduce the loan amount until the EMI amount provided by the calculator is within you financial reach.

Moreover, these tools are super easy and are mostly free to use. Most lenders will have this calculator on their website for to use without any cost. Once you’ve found the calculator, all you have to do is feed it with your loan variables such as the loan amount, the tenures, the interest rate and hit enter. Within moments, it will tell you a near accurate EMI amount. With this number in hand, you can make better plans and budget your monthly income and expenses to accommodate the EMI expense.

2. The second education loan calculator you must use is the eligibility calculator.

Knowing the loan amount you are most likely to be eligible for is very important before applying. Apply for a loan amount that’s too high and not only will your loan application be rejected but your processing fee could also be lost. But there is a tool you can use to prevent this from happening and it’s called an education loan eligibility calculator. Simply feed it with things like your monthly income, obligations, the interest rate and the tenure and it will tell you the loan amount you are most likely to be eligible for.

3. Lastly, you can also use the loan repayment calculator.

Say if you want to know how much you would save by making an additional payment every month, then you can use this calculator. Just tell the tool how much your balance amount is, what interest rate you are paying, the months left to repay the loan and the additional payment you are able and willing to make every month. Upon tapping on enter, it will tell you how many months you can cut short and the amount of savings you stand to receive by doing so.

Using these education loan calculators should set a strong base from which you can build strong repayment plans. We hope this write has been helpful, good luck and all the best!