About Education Loan
Students who want to achieve their dreams can apply for an Education loan that is offered by various banks in India. Education loans are offered to help students getting ready for their higher studies and can achieve all their academic dreams. The Interest Rate on Education Loan starts from 6.85% p.a., and it is along with loan tenures of more than 15 years. Education loans can be used for higher education in both India as well as abroad.
We all know that an Education is a personal long-term investment that will help us in generating returns like none other. Therefore, with an education loan, students can easily make their dreams come true.
Education Loan Calculator
The Education Loan Calculator is used to find out the EMI, i.e. equated monthly instalment. The amount that student needs to pay every month. The calculator works only on a given education loan and only for a specific duration; it will let you know that how much EMI is required to be paid by the student. So, To avail of the Education loan, students can directly apply for it.
Importance of Education Loans in India
The cost of an education in India or in abroad is increasing with each passing year. Taking the responsibility of child’s education independently nowadays is becoming more stressful and difficult due to these inflated costs. And this is the reason that there has been a continuous rise in the demand for study loans in India.
- An educational loan in India includes a wide range of graduate/ post-graduate courses, or it can be doctoral and professional degrees as well.
- An Education Loan will help the students to pursue their higher studies and career in India and abroad.
- Students having Financial constraints can easily apply for an education loan.
- There are several banks that are providing low-interest rates on education loans.
Eligibility Criteria of an Education Loan
The eligibility criteria that students should follow are mentioned below:
- The student should be 18 years or above
- The student should be a citizen of India
- The student should have scored at least 50% marks in graduation.
- He/She should have taken admission in career-oriented courses such as Medicine, Management, Engineering etc.
- The co-applicant should have a regular source of income.
Study Loan EMI Calculator
If students want to know about their monthly payments while applying for an education loan then, students can use the Study Loan EMI Calculator. It is done by entering the basic details such as the amount of loan, tenure, processing fee and interest rate. After that, students will get an estimate of their EMI.
There are several lenders who allow the students to make part prepayments on loan every year. If a student wants to make such payments then, they can easily enter their details in the calculator only, and the result will be shared after some time showing students the criteria about how much should they save on interest payments, and also students get to know about their tenure.
Here’s the list of courses that are offered under an Education loan:
- Nursery to class 12.
- Graduation and Post-Graduation courses by approved colleges/ universities under UGC/AICTE/IMC/government.
- Regular degree or diploma course.
- Job oriented courses as well, including professional/technical and for Graduation/Post Graduation including MBA/MCA/MS that are offered by the reputed institutions or courses conducted by the CIMA, i.e. Chartered Institute of Management Accountants – London or CPA, i.e. Certified Public Accountant – USA.
- Loans for skill development.
Abroad
- Firstly, The Job oriented courses and for Graduation/Diploma such as MCA/MBA/MS, etc. that are only offered by reputable institutions.
- Then, there are Courses that are conducted by CPA and CIMA.
How to use the EMI Calculator?
Students should follow the below-mentioned steps to calculate their EMI amount:
- The very first step is that students should use the slider and then select the amount of loan.
- Then, students should select the tenure only in months.
- Next, move the slider and just select down the interest rate
- The calculator is going to show you the EMI payable and total interest, payable as well.
- Now, just recalculate the EMI by changing the input sliders, and it can be done anytime.
- Therefore, EMI will be calculated as you move the sliders.
Having any queries related to study loans, students can contact or visit the website of Dialabank.
List of Expenses that Covered in an Education Loan
Here’s the list of expenses covered under an education loan. Students can check it out:
- Tuition fees
- Hostel fees
- Next is the Travel expenses for students studying abroad
- Then comes the Insurance premium
- Cost of books/instruments/equipment/uniform
- Fees: Examination/library/laboratory
- Computer’s Cost /laptop that is required during the course completion
- The expense related to Project work/thesis
Education Loan FAQ’s
✅ What is a Study Loan Calculator?
Study Loan Calculator is an online tool that helps in calculating the amount that an applicant has to repay. It also helps in computing the instalments that an applicant needs to pay per month. Adding on, it is also used to calculate the total amount to make by the end of tenure. Hence, the total amount can be the sum of both principal and interest amount.
✅ How much margin is necessary while availing of a study loan?
No, there is no such margin requirement for education loans, and it is up to 4 lakhs. If the amount of loan exceeds the 4 Lakhs then, the margin for students in India is 5% and for abroad is 15%.
✅ Have they required any charges when I miss my EMI or late payment?
Yes, of course, Rs 500+ taxes/ cheque bounce and also a penal interest @2% per month and 24% per annum on the overdue instalment. Therefore, we advised the students to keep their track of repayment clean.
