Looking at the education loan eligibility calculator and its benefits
Education is a passport to the future, for tomorrow belongs to those who prepare for it today. This sentence is true to the core. But to educate someone you need money. This is where education loans come into the picture. Education loans help students to learn the trade of their choice and set an exemplary path for their career. Once they get a job, they can repay the loan.
Students can even gauge the amount of loan money they are eligible for using an education loan eligibility calculator. This kind of calculator asks you to input the value of some variables and then gives you the loan amount you are eligible for.
The education loan eligibility calculator works on a mathematical formula. The interest on the principal of the amount is compounded annually in the said formula. And its formula has four variables. Here they are:
The calculator asks you to put your monthly income in one of its fields. If you don’t earn yet, then you are supposed to input the monthly income of one of your parents or your guardian. Then move to the next field.
In this field, input your total monthly expenses. Add your expenses like House rent, electricity bill, water supply bill, telephone bill, internet bill and other expenses. You also have to consider the EMIs of your other loans or your electrical appliances. After putting in the cumulative obligations, move to the next step.
In this field, put in the interest rate provided by your lender. For instance, the bank or an NBFC you are going to take the loan from will provide you an interest rate. You can use this calculator to compare the interest rates of different lenders.
In this field, put in the number of months you wish to repay the education loan in. This time may range from a few months to as long as a decade.
So, these are four fields that you have to provide input for and then you can get the education loan amount you are eligible for.
Now, let us look at some of the benefits of an education loan eligibility calculator.
If students were to calculate their education loan eligibility using a pen and paper it would take a lot of time and effort. Using an eligibility calculator will save the student’s time and efforts as they will have to put in the values in the respective fields and click on the submit button.
If a student calculates his eligibility using a pen and a paper, there is room for human error. But using an education loan eligibility calculator removes every possibility of human error and gives you accurate results according to the calculator formula.
When you use the loan eligibility calculator, you come to know about the amount you can get. Then you can plan your finances to pay back the loan. Thus, this calculator helps you to make a repayment plan for your loan.
We hope you learned more about an education loan eligibility calculator from this article and now you are in a better place than before to take up an education loan.