What is Education Loan?
An Education Loan refers to the amount of credit borrowed with the sole purpose of to finance post-secondary education or higher education-related expenses. Education loans can be obtained from the government or through private-sector lending sources.
What is Education Loan EMI?
Equated Monthly Installment (EMI) is a method of repaying the principal amount and loan interest in a staggered manner on a monthly basis till the loan is fully paid. Every EMI payment includes both the principal loan amount and the interest charged. A decision regarding the loan amount and tenure to opt for cannot be taken without factoring in the EMI. In case of education loan, the limit may wary from bank to bank. The repayment by the student usually begins after completion of course, every bank has their own criteria over the relaxations provided for the same.
What is Education Loan EMI Calculator?
Education loan helps you get the required financial assistance to be able complete your education in India or even abroad. Education Loan EMI calculator lets you you know the loan installment that needs to be paid at regular intervals in a quick and easy way. It enables you to assess the total outflow with respect to the loan.
How does EMI Calculation help?
EMI calculation gives a clear assessment of the amount that has to be put aside for paying EMIs which enables you to make an informed decision about the outflow for the loan every month. Hence, knowing the EMI amount helps you properly plan the expenses of paying for your education, while knowing how much needs to be kept aside for the same on a monthly basis.
Advantages of Checking Loan EMI
- Assess loan affordability
- Decide the loan amount and tenure
- Plan out loan repayment
- Plan Prepayment
Advantages of Education Loan
An Education Loan can be helpful in various ways. Here are some instances:
- Cover expenses of tuition fees, hostel, books, etc.
- Banks generally fund up to 90% of the cost of education.
- Interest helps in Income Tax deduction
- Repayment begins after completion of course
- Moratorium period is the additional time given after completion of course after which repayment has to begin – that gives student enough time to work out suitable options and ways for the same.
- Timely payment reflects well on credit score which helps in getting loans in the future.
