An education loan calculator allows prospective borrowers to compute their monthly instalments, better known as EMIs, which they will have to pay after availing an education loan. He/she will need to bear this liability till the loan amount is repaid in full.
The loan amount is calculated based on the parameters below -
- Loan amount or principal.
- Tenor for repayment.
- Rate of interest.
The formula used to calculate the EMIs is given by –
P × R × (1+R) ^ N ÷ (1+R) ^ N-1
Where, P = principal amount, R = rate of interest, N = tenor in months
Once you fill in these parameters, the education loan calculator instantly gives you the results. In case the results are not convincing, you can switch to other alternatives of borrowing funds. For example, a mortgage loan or loan against property (LAP) can be ideal to meet your education expenses. Such loans require you to mortgage any property to avail the required amount of funds.
Mortgage loan interest rates are usually lower than most other forms of credits. Moreover, just like an education loan calculator, you can also find out LAP EMIs using a loan against property calculator. Here, you will have to put in the same preferred values.
But instead of entering the education loan interest rate, you will have to mention the applicable property loan interest rate. Make sure to check these rates in advance to get accurate results on the LAP EMI calculator.
If you plan to proceed with a LAP loan instead of an education loan, you can approach your preferred lender. After that, discuss what is mortgage loan and the terms offered to make an informed decision.