How to calculate education loan EMIs?

The formula for EMI calculation is [P x R x (1+R) ^ n] / [(1+R) ^ n-1]. Using this mathematical formula, one can find the monthly instalment amount. However, manual calculations are often fraught with mistakes, which can affect the final decision to calculate EMI for an education loan.

Thus, resorting to an online education loan calculator for this purpose is ideal. Online devices like these use the same mathematical formula but deliver a faster and accurate result. Moreover, using them is also easy.

After visiting the calculator webpage, borrowers need to enter particulars like the loan amount, interest rate, and tenor. It will instantly display the total payable amount and EMIs. Moreover, debtors can vary these values to determine a loan offer that meets their requirements.

Being aware of the EMIs and total repayment amount can help individuals plan their finances accordingly. However, to make a decision that will be the most suitable for them, individuals need to consider a few more pointers other than EMIs and the total outstanding sum.

4 points to check for a perfect education loan offer

1. Availability

Check regarding education loan is their availability for specific universities and courses. Since lenders have particular guidelines regarding this, it is ideal to review this point to secure a loan.

2. Interest rate

Similar to other credit instruments, it is vital to review the education loan rates before applying. 

3. Loan tenor and repayment options

For Having clarity over these two aspects can aid individuals in adequate financial planning.

4. Eligibility criteria and documentation

Another significant point to review before applying is the education loan eligibility. Since these parameters differ across lenders, borrowers must compare multiple financiers before opting for one per their suitability.

Similarly, they should also keep in mind the documents required to ease the application process.

At the same time, it features specific limitations as well. For instance, one can only pay for tuition and accommodation. However, studying away from home includes other expenses not covered by this credit instrument.

In a situation like this, an education loan on property can be a potent alternative. Loan against property has gained prominence in recent years owing to the following benefits –

• The loan amount is substantial.
• No restriction over its usage.
• Property loan come at affordable interest rates.
• It does not include paying any hidden charge.
• Documents needed for a loan against property and eligibility criteria are minimal.

View more on https://www.awnewshub.com/calculate-the-emi-of-your-education-loan-the-total-amount-payable/