But the cost of education is ever-increasing and that further increases as a student apply for a reputed institution. Not every parent can afford these expenses and may have to rely on an education loan to make sure their wards can complete their studies.
The increasing availability of loans against property for educational funding has remarkably revolutionised the traditional idea behind student loans in India. Now, while planning how to avail an education loan against property is crucial, formulating a concrete repayment plan, with EMI determination occupying a crucial spot, is equally important.
Calculating EMIs is easy and accurate with an education loan calculator and saves borrowers the hassle of manual calculations.
Take a look at how you can use an education loan calculator to compute your loan EMIs.
EMI calculator for education loan: Check your loan instalments
Mortgage loans for education are long-term advances that come with significant repayment responsibility. One must thus confirm their ensuing EMIs and check their affordability with respect to their repayment capacity. The working of an education loan calculator which can help you in making the borrowing decision is briefly explained below.
Note that estimating the EMIs is one of the essential things to know before applying for a loan against property for education.
How to use an EMI calculator
You can follow the below few steps to identify your EMIs payable on a LAP loan for education.
Step 1: Visit a lender website offering this calculator
Step 2: Next, navigate to the education loan calculator page
Step 3: Proceed to make all required entries, i.e., the loan amount, tenor selected, and its applicable property loan interest rate
Step 4: Once entered, the calculator displays your loan EMI
Once you’ve made the entries, you will be able to see the EMIs payable, the total interest payable, and the total loan amount (including principal and interest). Some calculators also provide an amortisation schedule spanning the tenor selected, which indicates the principal and interest component of each EMI.
Education loans not only help to pay the academic fees but also its related expenses. Like all other loans, these loans also have payment terms where interest has to be paid on the principal amount. T
While mortgage loan interest rates are an invariable entry to the calculator, the other two entries are alterable and carry a critical bearing on the EMI amount. You can thus make the following changes to the two entries, expecting corresponding impacts on the EMI. Then, you can make a suitable borrowing decision based on EMI suitability.
- Any change in the loan amount entered is directly proportional to the EMI computed. Hence, you can increase the loan amount entry to observe a proportionate increase in the EMIs and vice versa.
- A loan’s tenor has an inverse relation with the EMI, meaning the latter decreases with an increase in tenor and vice versa. Individuals with repayment constraints can thus select a longer tenor for EMI reduction.
For the latter, one must also note that while an increase in tenor brings down the EMIs, it also increases the total interest payable due to an increased time factor.
As for the amortisation schedule reflected in a loan against property calculator, it helps in undertaking suitable repayment decisions, such as part-prepayment, foreclosure, or balance transfer of the loan to a new lender. Its principal-interest bifurcation helps determine the right timing for such a decision.
While this was all about determining the EMIs with the help of an education loan calculator, prospective borrowers must also gain a detailed insight into this mortgage loan. A broad understanding of what is mortgage loan helps make an informed borrowing decision, keeping in mind the implications of this long-term credit option on one’s finances.
With some of the lenders bringing pre-approved offers, availing such financing has become quick and convenient. These offers can be availed on a range of financial products, which also include loans against property and home loans. You would need to provide only your name and contact number to check your pre-approved offer. some of the lenders bringing pre-approved offers, availing such financing has become quick and convenient. These offers can be availed on a range of financial products, which also include loans against property and home loans. You would need to provide only your name and contact number to check your pre-approved offer.
Once you have assessed all aspects related to the EMIs, a reliable credit decision can be made to obtain an offline or online education on EMI. Use an eligibility calculator before applying to estimate the maximum amount you can avail as an education loan based on your property value, age, and income.