Why education loan calculators should be part of your planning process!

Planning is extremely important when it comes to an education loan. Enjoying a smooth borrowing experience & getting out of debt quickly requires a truckload of beforehand preparation. However, many students fail to make use of an Education Loan Calculator during their planning process, even though they are one of the best resources in this regard. They write them off as unimportant and useless. Keeping this in mind, we have put together a 3-point s list of reasons why using these tools is an essential step leading up to the application and repayment process of your education loan.s

1. Getting the application right.

A rejected application is probably the biggest fear for students. Not only is it extremely disappointing to have your application turned down, but it will also mean that any processing fees you’ve provided will be lost. Consider that this fee is usually 1 or 2 percent of the loan amount you've applied for, a rejected application is both disheartening & costly.

However, you can save yourself from this by using an Education Loan Emi calculator, the eligibility calculator to be specific. It will tell you the amount you should borrow keeping in mind 3 of the most important factors determining your eligibility – your monthly income, your monthly obligations & the interest rate of the loan.

2. Ensuring smooth repayments!

Repaying the loans is the most important and the most demanding part. Without the right amount of planning & preparation, you could experience an extremely troubling repayment experience. Month ends will be synonymous with cash crunches and cause you to pull your hair out. However, if you use an Educational Loan Emi Calculator to check your EMIs beforehand, you can prepare for the repayments accordingly.

You can also check if you can afford to accommodate the EMIs with your current monthly income & expenses. If you can’t do so even after dropping unwanted expenses, you will have to consider borrowing a smaller loan amount. You can find the right loan amount & corresponding EMI by feeding the calculator with lower & lower loan amounts until the EMI predicted is viable for you.

3. Planning an easier, more affordable way out of debt.

After using the education loan calculator to check your EMIs, you will observe one surprising fact – in the initial years, you pay more interest instead of repaying the principal amount. This keeps your outstanding balance relatively the same, even though you are making frequent payments. You can avoid this by making prepayments. However, you need to ensure you are making the right decisions when it comes to prepayments, something that easily done using the repayment calculator. You can input the amount you wish to prepay or how much additional EMI you want to pay and it will tell you how much you will end up saving. Properly planned prepayments will amount to decent savings & also get you out of debt faster.

Any aspirant could use these benefits of an education loan calculator when planning their student loan decisions. We hope the pointers mentioned push you to use one of these innovative tools before applying. Good luck and study hard!

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mangeshpatil Joined: June 14th, 2019