How to use an educational loan calculator?

In recent years, there has been a rise in the number of students who opt to go abroad for their higher studies. Some students tend to go immediately after their graduation, while some go after getting a few years of professional experience. This increase in the number of students has led to the rise in the cost of education as well. This varies from country to country, and from institution to institution.

Getting higher education loan before going abroad has many benefits. But, many people have started using an educational loan calculator before they apply for an education loan. Are you confused about how to use and how it could benefit you? We have listed below the steps of using loan calculator:

1. Visit the website of the loan provider

You can access the educational loan calculator from the website of the financial institution from where you want to get your education loan. Most websites have the option of accessing the loan calculator on their landing page itself. Alternatively, you could do a web search for ‘educational loan calculator’, and select any option from the search result as per your preference.

2. Enter the details for calculation

Once you access the calculator, you will have to enter the details required for calculation. Keep in mind that different lenders have different input options. For instance, the lowest ROI offered by one lender might be different than what another lender is offering. The same could apply to the tenure of the loan. Select the ROI which you feel is easily payable. After that, select the tenure of the loan, and then select the loan amount you require. Submit these details following which calculations will be done and you will be presented with the EMI amount that you will have to repay for the higher education loan you have taken.

3. Try different combinations

If you feel like the amount that has been presented to you exceeds your limitations, then you can try changing the input details to get a different result. For example, if you run a search for ‘student loan Germany’, and come across a calculator and add your required loan amount as 40 lakhs, and the tenure as 10 years. Here, on the calculator, if you select a ROI of 14%, then the EMI amount will be of Rs.62000. If you feel like this amount is a little high than what you can afford, then you can try changing the tenure or the ROI or both to get a different result. You can try different combinations for as many times as you want as the calculator is free to use without any restrictions.

These are the steps that you can follow to use the educational loan calculator to get a better idea of what your EMI amount will be for the loan amount that you take. This will help you in selecting a higher education loan that would fit your budget and that you can repay easily without defaulting any installments, and which will easily cover all of the necessary expenses involved for the course.

Keep in mind that the amount that will be displayed post-calculation may vary from what the actual amount will be when you apply for the loan. Be sure that you discuss it with your lender.

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