A quick look at an educational loan eligibility calculator and its benefits.

Education Loans have become more accessible over the years. So much so that any student can calculate the principal amount that they can get. They can also find out whether or not their chosen course can be pursued in that amount of money using the educational loan eligibility calculator. In this article, we will give you a quick look at this calculator and its benefits.

An education loan eligibility calculator gives the user the education loan amount they are eligible to get based on the value of 4 factors or fields.

These 4 fields are:

1) Monthly Income:

You have to put your monthly income in this field. If you are a student, then put the monthly income of either of your parents or a guardian. These people are called the co-borrowers. A spouse can be a co-borrower as well.

2) Monthly Obligations:

You have to put in the cumulative sum of your liabilities in this field of the educational loan eligibility calculator. The expenses included in it are your electricity bill, water supply bill, internet connection bill, phone bill, vehicle insurance premium, other insurance premiums, home rent, home loan and vehicle loan EMIs and so on.

3) Interest Rate:

You have to put the interest rate the lenders are levying on the education loan they have offered. Usually, the interest rate levied on education loans in India lies between 9% to 14% per annum.

4) Tenure of Repayment

You have to put the number of months in which you plan to pay back your education loan in this field. Try to pay back your education loan within 8 years. Because you will get tax benefits on the education loan interest up to 8 years only.

So, these are the 4 fields or factors that decide the education loan amount you are eligible to get. Once you fill in your chosen values in these 4 fields and press the calculate button, you will get the speculative amount of money in the result field.

Now, let us look at the benefits of using the educational loan eligibility calculator. The benefits are:

1) Simple to Use:

The education loan eligibility calculator is simple to use. All you have to do is put appropriate values in these fields and press the calculate button. Then you will get the result. You do not need to take a pen and paper to calculate the answer.

2) Gives quick and accurate results

This calculator works on a mathematical formula where the principal amount is compounded annually. As the formula does its calculations using a computer, the results displayed are always accurate and quick.

3) Free to Use

This calculator is free to use. Many lenders provide this calculator to everyone interested in finding their education loan eligibility on the lenders’ websites. So, these are the 3 benefits of the educational loan eligibility calculator.

We hope that after reading this article, you can use this calculator with ease. Please consult a financial advisor to plan the finances of your higher education. All the best!