Applying for an education loan requires a student to do a thorough check-through of a consideration list which includes course-related eligibility criteria, academic record, and financial backing. Among these criteria, the student also needs to think in advance about the repayment of the student education loan to plan their future expenses along with loan repayment.
Table of Contents
What is an education loan calculator?
An education loan calculator helps a student calculate their student education loan’s future EMI (Equated Monthly Instalment) and thus, helps them plan for their education loan repayment.
What are the benefits of using an education loan calculator?
Before understanding how to use an education loan calculator, let us understand the benefits of using it:
- Precise calculation of EMI: A student education loan EMI calculator such as one from IDFC FIRST Bank can help you know your exact EMI once your repayment cycle starts.
- Helps you be far-sighted in terms of repayment: By knowing your EMI in advance, you can plan your expenses much better.
- Easy to use: A student education loan EMI calculator is easy to use since it works well on mobile phones and laptops.
How to use an education loan calculator before applying for a student loan?
Let us take the example of IDFC FIRST Bank’s education loan EMI calculator to understand how education loan calculators work and how a student can use them. Four variables must be entered inside IDFC FIRST Bank’s calculator to know one’s education loan EMI – loan amount, rate of interest, course duration, and loan tenure.
The loan amount is the total amount of loan taken by an individual, the course duration is the course that you intend to pursue, and the loan tenure is the number of years you plan to take this loan.
Besides these options, another option that needs input from the user is called ‘mode of payment’. A student can choose from three modes of payment – start paying EMI immediately, paying only simple interest while one studies, and ‘moratorium’ – not paying anything while one studies. Once these details have been entered, the EMI calculator calculates the exact EMI of the student during the repayment cycle.
How to apply for an education loan online?
Here is how you can apply for an education loan online in India:
- Consult an education loan calculator online
Education loan calculators can be found online and are free. You can access them 24/7 on the website of banks and financial institutions.
- Assess your ability to apply for the loan
You can get a clear idea about whether you can afford an education loan or be eligible for it after consulting an education loan calculator online. Thus, as the next step, you can assess your ability to apply for the loan.
- Proceed with the application or make changes
If everything seems reasonable, proceed with applying for the education loan by filling out the application form as a final step.
Seize your dreams with an IDFC FIRST Bank education loan today. Benefit from an interest rate starting at 8.50% per annum and an unsecured loan up to ₹75 lakh!
