Benefits of Education Loan EMI Calculator
The cost of education is going higher by the year and though a lot of people have huge dreams to avail the best education, they usually take a back step as they do not have the funds to finance the education. So, most people are opting to fund their higher education with an education loan as the cost of educational degrees are going higher. Education loan is the money borrowed to finance your child’s education or other school related expenses. The payments are delayed when the child is in school or college and for an additional six months grace period after graduation. The education loan come with low interest rate and doesn’t require you to provide a collateral. Education loan EMI calculator helps you determine the amount of the money that you have to pay each month as instalment towards the loan repayment. It helps you save time that you would’ve taken to visit the bank to find the amount.
All you have to do is fill in the loan amount and the interest rate and tenure and processing fee if the lender is charging any and you get a graphic and tabular break-up of the loan repayment. You will also get an amortization table that shows you how much of your monthly payment is applied to the interest and how much lowers your principal amount. In the initial days, the majority of the monthly payment is dedicated to paying the interest and as the loan is maturing, larger portions of the monthly payments go towards paying the principal loan amount. This is a very useful information if you wish to pre-close the loan.
Home loan EMIs are determined by four major factors, that is the principal amount, rate of interest, loan duration and the method of computation. The method of computation is either the annual reducing method, monthly reducing method or the daily reducing method.
The formula for calculating EMI is:
EMI = [P x R x (1+R) to the power of n] / [(1+R) to the power of n -1],
where;
P= principal amount
R= rate of interest
N= number of monthly instalments.
The manual calculation to derive the EMI amount is too hard and hence the borrower can make use of the online loan calculators to avail the EMI amount. It helps the borrower to be prepared for the EMI payment and he can plan his finances in a better way and more efficiently.
Knowing how much loan EMI you have to pay will help you to decide the tenure that is most comfortable for you to pay back the loan. Most banks do not explain clearly the amount of EMI that goes on for the interest payment and for the principal loan repayment. The EMI calculators will offer this information within seconds. And you won’t have to rely on the word of mouth of the agent as you can do the calculations on your own which will be accurate.
You can compare with the interest rates and tenure offered by the other lenders and choose the one that is the best. EMI calculator tells you the exact amount of EMI that is you have to pay. And you can manage your finances in an efficient way so that you won’t miss paying the EMI amount. The information regarding the Education loan EMI are at your fingertips and you can plan your finances and make investments that will help you repay the loan in an relaxed manner.
All you have to do is fill in the loan amount and the interest rate and tenure and processing fee if the lender is charging any and you get a graphic and tabular break-up of the loan repayment. You will also get an amortization table that shows you how much of your monthly payment is applied to the interest and how much lowers your principal amount. In the initial days, the majority of the monthly payment is dedicated to paying the interest and as the loan is maturing, larger portions of the monthly payments go towards paying the principal loan amount. This is a very useful information if you wish to pre-close the loan.
Home loan EMIs are determined by four major factors, that is the principal amount, rate of interest, loan duration and the method of computation. The method of computation is either the annual reducing method, monthly reducing method or the daily reducing method.
The formula for calculating EMI is:
EMI = [P x R x (1+R) to the power of n] / [(1+R) to the power of n -1],
where;
P= principal amount
R= rate of interest
N= number of monthly instalments.
The manual calculation to derive the EMI amount is too hard and hence the borrower can make use of the online loan calculators to avail the EMI amount. It helps the borrower to be prepared for the EMI payment and he can plan his finances in a better way and more efficiently.
Knowing how much loan EMI you have to pay will help you to decide the tenure that is most comfortable for you to pay back the loan. Most banks do not explain clearly the amount of EMI that goes on for the interest payment and for the principal loan repayment. The EMI calculators will offer this information within seconds. And you won’t have to rely on the word of mouth of the agent as you can do the calculations on your own which will be accurate.
You can compare with the interest rates and tenure offered by the other lenders and choose the one that is the best. EMI calculator tells you the exact amount of EMI that is you have to pay. And you can manage your finances in an efficient way so that you won’t miss paying the EMI amount. The information regarding the Education loan EMI are at your fingertips and you can plan your finances and make investments that will help you repay the loan in an relaxed manner.