Nothing must come in between a student and their cherished dreams of pursuing higher studies, studying a course abroad, or continuing with higher studies in India. Therefore, when in need of funds, you must consider availing of an education loan for studying abroad. An education loan calculator helps estimate the EMI you will be required to pay based on the loan tenor you have chosen. You may be confused and unable to decide how much money you need to keep aside for monthly instalments. If that’s the case, you can try using an education loan EMI calculator available online.
Insert information, such as the amount needed and preferred loan tenor, and within seconds, you will easily know the result, which is the education loan EMI amount.
EMI Calculation for Using a Study Loan Calculator
The calculation formula for the EMI is as follows:
[P x R x (1 + R) ^ n] / [(1 + R) ^ n – 1]
P stands for principal amount,
R stands for applicable education loan interest rate
n stands for number of installments
Benefits of Using an Education Loan Calculator
An education loan calculator is extremely easy to use. It is available online and is a free tool. It is also popular as it provides instant results. A user can easily move the slider or insert the desired loan amount and tenor to receive the estimate of payable EMIs. Another advantage of utilizing an education loan calculator is that it also helps plan your finances ahead of time. You will get an idea of the sum of money monthly for your EMI. Here are some other advantages of using an education loan EMI calculator.
Fits in the EMI and indicates changes in the monthly budget
When calculating education loan EMI, you’d know the definite amount that you need to shell out each month. You can reconsider the monthly expenses all through the loan tenor to fit in the EMI of your education loan easily.
Allows making decisions by changing factors that may affect the EMI
The education loan amount, loan tenor, and monthly interest rates play a significant role in assessing EMIs. The education loan EMI is typically directly proportional to the interest rate and loan amount. It is also inversely proportional to the loan tenor. So, if you select a longer tenor, the monthly installments will be smaller. With the help of an education loan calculator, you can experiment with various tenors and loan interest rates. This makes it easier to decide the amount of loan you must take without causing inconveniences to your finances or lifestyle.
Ensures healthy credit rating
If you calculate the EMI outgo before availing of an education loan, you will be all set to manage your finances to repay the loan within the deadline. You will not be missing out on EMIs and this would help avoid a drop in the credit rating.
Saves time and shares accurate results
This helps save significant amount of time. The chances of errors typically increase when calculations are made manually. However, with the education loan calculator, users get accurate results in seconds.
Guarantees ease of use
The loan EMI calculator is available online. It is also easy to use. All one needs to do is enter the loan amount, interest rate, and loan tenor to get the monthly installments required to be paid. This makes it easy for users to calculate the monthly installments anytime, anywhere.
The Final Word
There are a host of advantages of an education loan EMI calculator and some of the major benefits mentioned above. If you are willing to take up an education loan, it is advisable to use the calculator for getting accurate and precise outcomes effortlessly.